Analysts Expect That Verizon Will Have A Good Year

Analysts expect that Verizon will have a good year this year, highlighting points about its ability to reach wireless service revenue growth and how quickly the company will be able to achieve such an accomplishment. Moreover, Verizon is believed to have the ability to "translate its improved earnings and generate cash." According to Verizon's predictions, as well as those expectations from analysts, the carrier will have no trouble in being able to reach wireless service revenue growth by sometime in the second quarter of 2018.

In addition to potentially reaching wireless service revenue growth within the second quarter of this year, this will be Verizon's first time reaching wireless service revenue growth since 2014, so it should be a pretty big deal for Verizon. Not only will this mean that the company is growing the revenue from its wireless service, but it also essentially means that Verizon's decisions and strategy for its wireless service and the changes that have been made to it are working for the carrier as well as for customers.

Analysts point out that big contributing factors to Verizon's previous inability to reach wireless service revenue growth are things like its ARPA being negatively impacted. Verizon's transition from only having two-year contracts with discounted phones to a primarily dominant EIP payment plan for new phone purchases as well as the arrival of its unlimited plans are said to have been part of why ARPA has seen a negative impact. That said, analysts also believe that by the end of the 2018 fiscal year Verizon should be beyond these hurdles. While analysts seem to be rather upbeat about Verizon's wireless service revenue growth, the same can't be said for Verizon's 5G efforts, or Verizon's decisions to expand on its media offerings, or its continued research and development in the IoT industry. Some analysts believe that while these are big initiatives from Verizon that do show promise, they still have yet to convince analysts to change their outlook for Verizon's newer growth avenues. Analysts at Cowen and Company state that it will "take many quarters" for these efforts to "show constructive proof points," which means it could be a while before Verizon's further advancements in IoT, 5G, and its media expansion will lend themselves to the carrier's upward growth in a more substantial way.

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Justin Diaz

News Editor
Justin has written for Android Headlines since 2012 and currently adopts a Editor role with a specific focus on mobile gaming and game-streaming services. Prior to the move to Android Headlines Justin spent almost eight years working directly within the wireless industry. Contact him at [email protected]
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