Boston, MA 03/03/2014 (wallstreetpr) – Verizon Communication Inc. (NYSE:VZ) currently commands a good market share in the telecommunication industry after completing a 45% stake purchase of Verizon wireless, from Vodafone Group (ADR) (NASDAQ:VOD). Verizon communication strengths can be seen in its revenue growth metrics that have remained positive over the past years as well as notable ratio of return on equity. The company’s profit margins are high and impressive, complimented with good cash flows.
Verizon Key strengths
The acquisition of Verizon Communication Inc. (NYSE:VZ) wireless gives it the much needed control of the wireless business in the US. The company as a result projects total revenues of $86 billion for the current year with $36 billion in cash flow. Verizon trading volumes after sealing the record acquisition surged to an all-time high of 618 million shares, 50 times above the daily volumes with weekly volume exceeding the 1 billion mark.
The acquisition gives it the much needed financial firepower to offer more monthly data to its consumers at the same price. The company has gone forth to offer a new pricing plan codenamed Edge that allows customers to pay for their new smartphones on an installment basis rather than on a subsidized plan.
When compared to other industry players, Verizon Communication Inc. (NYSE:VZ) has all to lose as it controls majority of the market-share with cash flows margins of 47% compared to T-Mobiles of 24% which is supposed to be its fiercest rival. Verizon Communication is expected to get 70% of its revenue and 80% of cash flow from wireless business in the coming quarters. The company does not expect to carry out any shares repurchase program for the next three years although increased dividends are a rumored possibility.
Verizon Communication Inc. (NYSE:VZ) closed the week at a high of $47.58 having moved up by 0.17%
