Vz projected to lose 1.2b due to strike The revenue and EPS estimates for the year 2016 are now $127.4 billion and $3.91, respectively, down fro

Estimates for the Verizon Communications Q2 and FY16 have been cut to reflect the impact of the strike

Published By: Ken Bock on May 20, 2016 10:10 am EST

Verizon Communications Inc.(NYSE:VZ) has landed itself in a mess as the employee strikes enter the 6th week. Most of the workers involved in the protest are associated with wired communication services department. The most affected areas of business are wired telephone services and FiOS broadband network users. The ongoing protest has surely had its toll on Verizon as the estimate numbers for the company are now cut by Wells Fargo by $343 million and $826 million for Q2 and FY16, respectively.

A federal mediator has approached both the parties in order to get to a settlement in order to dissolve the causes behind the protest; however, any progress in this regard is yet to be made. The company’s management acknowledged that owing to the strikes, the company has currently been unable to process the new order for its wired broadband service. The analyst also cut the margins estimate for the wired business of Verizon down to 17.7% and 19.9% from 18.9 % and 20.7% for Q2 and FY16.

Verizon’s Wireless services have been operating as usual but the strikes have sent shockwaves across all the business of the company. The company has not been able to adequately market or offer any lucrative promotions during the running quarter, suggesting a state of psychological stress. Furthermore, the consumer activity has also been on the slower side as they await the launch of new devices. Despite the near term headwinds, the analyst chose to maintain his outperform rating on VZ. The revenue and EPS estimates for the year 2016 are now $127.4 billion and $3.91, respectively, down from $128.6 billion and $3.98. Similarly, FY17 revenue estimate goes to $128.5 billion down from $129.5 billion, while, EPS estimate goes to $4.00 from $4.08 prior estimate.

The analyst opinion regarding VZ stock is concentrated towards Hold rating which has 22 ratings to its name. Others include, 6 strong buy, 6 buy and 1 underperform. The stock closed at $49.63 yesterday.

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25 replies (most recent on top)

Now Europe pays too.

I hear you Dan.

A long time ago and what has the stock done since? Lowell was a tool.

Dan has made a deal in order to avoid repeating Lowell's mistake.

This time will be different.

Dan settled. He will do just fine with a new leaner workforce!

Agreed what did Lowell actually accomplish? We are still making more than ever.

Lowell was a fool.

I heard they were to get rid of the union in 1998. It has been awhile now. Maybe someday.

I guess they will get rid of the union in 2030

The stock is only 40 Cents more 10 years later!

Interesting article.

they were supposed to get rid of the union back in 16.

LOL. That stoppage led to Hans Becoming CEO. They gave Lowell the boot since he didn't break the union.

Dan won't be as stupid as Lowell.

"But it's saving $3.8B a year when the 38,000 Quitters abandoned their $100K jobs. The corp is making billions more than it would have. Sounds like a good strategy."

I cant comment on whether the strategy is good or not, but I suspect the union salaries/benefits total more than $3.8B/yr. But, once the costs of the contracted workforce are factored in, who knows what the actual savings might be.

Lowells house of cards is up $hit creek....Fuk Verizon!

it will be good for the sale to a telecom company

That was clearly written by a H1B.

But it's saving $3.8B a year when the 38,000 Quitters abandoned their $100K jobs. The corp is making billions more than it would have. Sounds like a good strategy.

Gonna be a lot of mgmt RIFs now to pay for whatever the union chosen ones bleed out of the company. Unless they don't come to terms and are replaced. Sounds like some EWA motivation right there.

Probably a good time to set the strike price for new stock options as well.

It is a great time to max out your 401k, buy low, sell high, Thanks!

YES!!!!!!!!!!!

Lowell, was it worth it?

Thread regarding Verizon Communications Inc. layoffs

Vz projected to lose 1.2b due to strike The revenue and EPS estimates for the year 2016 are now $127.4 billion and $3.91, respectively, down fro

25 replies (most recent on top)

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