Verizon (VZ) Stock Advancing Ahead of Q2 Results

Verizon (VZ) stock is expected to deliver a year-over-year decline in earnings per share and revenue on Tuesday before the market open.
By Natalie Walters ,

NEW YORK (TheStreet) -- Shares of Verizon (VZ) - Get Report are up 1.02% to $55.94, ahead of the company's fiscal 2016 second quarter results due out before Tuesday's market open. 

Analysts surveyed by Thomson Reuters are looking for earnings of 92 cents per share on $30.95 billion in revenue. Last year, the company reported earnings of $1.04 per share on $32.22 billion in revenue for the same quarter.

Factors at play in the results include Verizon's agreement to a 10.9% pay hike for its unionized workers over the next four years, as well as a small increase in pension benefit and 1,400 new jobs, Zacks.com reports. The agreement comes after The Communications Workers of America (CWA) and International Brotherhood of Electrical Workers (IBEW) protested the company until June 17, when the deal was reached. 

The stock is up today as Verizon is thought to be the frontrunner to acquire Yahoo's (YHOO) core business. 

Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:

We rate VERIZON COMMUNICATIONS INC as a Buy with a ratings score of A. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its solid stock price performance, revenue growth, expanding profit margins, growth in earnings per share and increase in net income. We feel its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

You can view the full analysis from the report here: VZ

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