Dow Darling Verizon Delivers Cash Flow

Quote: If you account for the $2.3 billion employee severance program charge this quarter, Verizon (VZ) actually lost $.07 per share (see call transcript). Revenue: Decreased a fraction of 1% Year-over-Year at $26.77 Billion vs.$27.11 Billion consensus, missing top-line expectations. Ivan Seidenberg, Verizon Chairman and CEO, stated “Our cost-reduction efforts are gaining momentum, and trends in the global business market are showing signs of stabilization.” Comment: Shares of Verizon are trading up over 1% following the company’s earnings release Friday morning, trading at $27.38 per share, compared to Thursday’s closing price of $27 per share. As you can see above, Verizon shares are trading below both its 50-day and 200-day moving price average, typically not a healthy technical sign for the stock at this moment in time. Look for the stock to recover its 50-day moving price average in order to reinforce a confident long position. Meanwhile, Verizon is paying a 7.2% annual dividend, the true bread-and-butter for sparking the interest of longer-term shareholders looking to receive consistent cash flow of their long position. If Verizon shares can rise above $28 per share and hold firm, it is very possible you could see a range bound move to $30 per share with a very solid 7.2% annual dividend, a dividend under no threat after 29.8% deliverance of higher cash flow on Friday’s earnings report. For more detailed information on the Verizon earnings release, visit here.Disclosure: No positions in the stocks mentioned....
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