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No. of Recommendations: 6
Hey Nahag, I have no idea if it is or is not being considered for selection in the Pro portfolio. But these are my basic thoughts on the company:

* The dividend is a nice, juicy yield and is reasonably safe.

* Verizon has a lot of debt (a shade over $100B), most of it stemming from buying out Vodafone's stake in Verizon Wireless in 2014.

* Be forewarned, Verizon is now looking for growth in digital advertising which is why it is pursuing acquisitions like AOL and Yahoo. It also is expanding into content with go90, its mobile streaming network. It might be pursuing a bigger entry into content with a much larger acquisition, but those are only rumors for now. Some consider this good, some consider it bad, but just understand it.

* I still believe Verizon is the best wireless network. It consistently wins third party awards for such. While the other networks have closed the gap considerably, I believe as 5G begins to take shape VZ will once again separate from the pack. A few weeks ago, I wrote an article on the public side of on how VZ could easily be one of the big winners in the race to 5G:

Verizon Communications Inc (NYSE:VZ) is committed to being the first telecommunication company to deploy a 5G network. In the company's 2016 second-quarter conference call, CEO Lowell McAdams stated he learned from Verizon's experience with 4G LTE that "being a first mover in developing the technology and nurturing the ecosystem is the best way to ensure that our customers benefit from its capabilities."

Beyond the obvious benefits of being the first to upgrade its network, 5G would also substantially lower Verizon's Fios costs. Fios by Verizon is the company's effort to bring the advantages of fiber optics straight to the end consumer.

You can read the entire article at

* With two acquisitions to bolster its connected vehicle business, Verizon is quietly moving to the forefront of the connected-vehicle and fleet-management movement. This is one of the areas that Verizon is moving in that I really, really like. From Foolish contributor Nicholas Rossolillo:

Verizon paid $2.4 billion for Fleetmatics, half the amount paid for each AOL and Yahoo!, but a hefty sum nonetheless. Fleetmatics owners received $60 in cash in lieu of their shares.

Over the summer, Verizon also quietly purchased California-based private fleet management company Telogis for an undisclosed amount. Verizon is combining both fleet management companies into its Telematics business, a service that already provided consumer vehicle infotainment and connection services. The division also consists of Hum by Verizon, a $10-per-month subscription that provides roadside assistance, a certified mechanic hotline, and consumer vehicle tracking.

Why did Verizon make the moves? The communications company has been in a slow process of transition from a telecommunications company to a business that has a hand in multiple communication outlets.

Wireless providers were at the forefront of providing connectivity for smartphones, which have become indispensable parts of our lives at work and at play. With connected vehicles becoming a rule rather than an exception, Verizon sees benefit in moving beyond just consumers and their smartphones and treating vehicles and transportation in much the same way: as a means of staying connected with the world and providing a boost to productivity.


Finally, here is a look at some of the company's numbers and metrics. I will update these every quarter when Verizon reports its quarterly earnings.

Total Revenue (billions) Q1 Q2 Q3 Q4
2014 30.818 31.483 31.586 33.192
2015 31.984 32.224 33.158 34.254
2016 32.171 30.532 30.937 32.340

EPS (Adjusted) Q1 Q2 Q3 Q4
2014 0.84 0.91 0.89 0.71
2015 1.02 1.04 1.04 0.89
2016 1.06 0.94 1.01 0.86

Cash Flow From Ops (billions) Q1 Q2 Q3 Q4
2014 7.1 7.7 8.4 7.5
2015 10.2* 8.7 9.5 10.5
2016 7.4 5.4 4.8 5.1

*Includes $2.4 billion from tower transaction

Free Cash Flow (billions) Q1 Q2 Q3 Q4
2014 3.0 3.3 4.2 2.9
2015 6.5 4.2 5.1 5.3
2016 4.0 1.5 0.7 (0.6)

CapEx (billions) Q1 Q2 Q3 Q4
2014 4.2 4.3 4.1 4.6
2015 3.7 4.5 4.4 5.2
2016 3.4 3.9 4.1 5.7

Total Debt (billions) Q1 Q2 Q3 Q4
2014 109.8 110.0 109.2 113.3
2015 112.9 113.7 112.3 110.2
2016 109.9 99.7 106.6 108.1

2016 Q4 Earnings (Current):

Revenue Growth (billions)
2015 Q4 TTM Revenue = 131.62
2016 Q4 TTM Revenue = 125.98
Year Over Year TTM Revenue Growth = (4.3%), previous quarter (2.1%)

EPS Growth (Adjusted)
2015 Q4 TTM Earnings = 3.99
2016 Q4 TTM Earnings = 3.87
Year Over Year TTM EPS Growth = (3%), previous quarter 2.4%

P/E (Check Current Price) = 49.97/3.87 = 12.91

Some other quarterly highlights:

* 552K new 4G LTE smartphones
* Wireless postpaid churn of 1.10%, (phone churn less than 0.9%, tablet churn a bit higher)
* Smartphone penetration 86%, up from 81% last year
* 4G LTE: Added 1.9M devices
* Total FIOS revenue up 4.4% YOY
* FIOS internet: 68K net adds, 40.4% penetration
* FIOS video: 21K net adds, 34.3% penetration

Long VZ
MasterCard (MA), Nestle (NSRGY), PayPal (PYPL), and Verizon (VZ) Ticker Guide
See all my holdings at
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