Verizon reported a small rise in earnings Thursday, but warned that a strike with unionized workers that is now in its second week could damage current quarter earnings. During a webcast with investors, Verizon Chief Financial Officer Fran Shammo addressed the strike that began last week among nearly 40,000 workers. "Given the status of our labor contract negotiations, there will be pressure on earnings due to the timing of cost reductions. Depending on the progress of the negotiations, we may need to update the full-year guidance at a later time." Shammo said he doesn't anticipate any significant financial impact in the second quarter, "unless this drags on for a much longer time." If a prolonged strike does happens, Edward Jones analyst Dave Heger cautions that Verizon earnings would take a hit because of a delay in cost cutting efforts.
5 replies (most recent on top)
Stopping bad investment is an even better cost cutting effort? Did Verizon really have to buy AOL? Or MCI? Or Terramark? Or Go90?
"as today's earning's show"....traditional wireless and wireline products continued to fund the company's cash flow needs, while IOT which was up 25% is still showing earnings that don't really amount to a rounding error at this point.....
As today's earnings show, time to tighten so we can make it through, not get greedy and lose it all.
xhp, why cant they say they are breaking the union?
breaking the union IS a cost-cutting effort... they just can't say that's what they're doing
Barney Rubble knows!