Telecom carriers such as Verizon (VZ), AT&T (T), Sprint (S) and T-Mobile- MetroPCS (PCS) also face a key earnings test as they try to repair hurricane-damaged networks and continue with recently announced network expansion and consolidation efforts.
As of Wednesday, Hurricane Sandy is reported to have hit the infrastructure of the nation's largest carriers. According to Reuters, the nation's leading carrier and New York-area powerhouse Verizon (VZ) may have come out of the storm with the worst damage after flooding and power outages hit the company's offices in Lower Manhattan, Queens and Long Island.
Late on Tuesday, Evercore Partners telecom analysts, led by Jonathan Schildkraut, put out initial calculations on the impact of Sandy on telecoms, highlighting key earnings and service scenarios."While it's still too early to determine how much the storm could impact the carriers financially, we do look at last year's storm, Irene, as a guide. Irene (in addition to Tropical Storm Leo) -- which notably impacted Verizon's total footprint -- led to roughly a 5-cent impact to 2011 EPS and slower FiOS customer growth in
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV