Verizon sees no increase in 2019 profit, misses estimates
New York — Verizon Communications on Tuesday said it does not expect profit growth in 2019 due to a higher tax rate and interest expense, and missed Wall Street estimates for fourth quarter revenue. The largest US telecoms group by subscribers said 5G, the next-generation wireless network that is expected to bring much faster data speeds, will not have a large impact on Verizon’s financials until 2020, foreshadowing a year of flat growth for the major US carriers. Craig Moffett, an analyst with MoffettNathanson, said in a note on Tuesday that investors have been focused on what the build-out of 5G will cost Verizon rather than how much it will earn from the technology. Moffett also said the company’s profit guidance this year was “not very inspiring”, given the strong US economy. Verizon CFO Matt Ellis said during the earnings call with analysts that the company expects earnings per share growth to be reduced by between 24c and 28c, due to the higher effective tax rate and increased...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.