NEW YORK (TheStreet) -- Verizon Communications (VZ) - Get Report shares are rising by 1.6% to $46.62 on Wednesday after the company earlier today unveiled Grid Wide Utility Solutions, a smart grid technology.
For utility companies, the new Internet of Things (IoT) platform offers an integrated solution for smart metering, demand response, meter data management and distribution monitoring and control, as it comes equipped with cloud-based applications, the company said.
Through the use of the technology, utility companies can reduce operating costs and see a revenue growth, the company noted. This is due to the fact that companies can see information regarding outages and abnormal usage patterns on the platform's dashboard.
"Historically, utility companies have constructed costly communications networks and installed premise-based servers designed to last for at least a decade," Jay Olearain, Verizon's director of business development for energy and utilities stated.
Separately, the company yesterday said it teamed up with Time Warner's (TWX) HBO to distribute streaming service HBO Now on Verizon digital platforms.
Verizon Communications, provides communications, information, and entertainment products and services to consumers, businesses, and governmental agencies worldwide
Separately, TheStreet Ratings team rates VERIZON COMMUNICATIONS INC as a Buy with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation:
"We rate VERIZON COMMUNICATIONS INC (VZ) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in net income, good cash flow from operations, expanding profit margins and growth in earnings per share. We feel its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- VZ's revenue growth has slightly outpaced the industry average of 3.6%. Since the same quarter one year prior, revenues slightly increased by 2.4%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Diversified Telecommunication Services industry average. The net income increased by 0.4% when compared to the same quarter one year prior, going from $4,214.00 million to $4,231.00 million.
- Net operating cash flow has increased to $8,737.00 million or 13.98% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -0.86%.
- The gross profit margin for VERIZON COMMUNICATIONS INC is rather high; currently it is at 61.37%. Regardless of VZ's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, VZ's net profit margin of 13.12% compares favorably to the industry average.
- VERIZON COMMUNICATIONS INC's earnings per share improvement from the most recent quarter was slightly positive. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, VERIZON COMMUNICATIONS INC reported lower earnings of $2.51 versus $4.00 in the prior year. This year, the market expects an improvement in earnings ($3.93 versus $2.51).
- You can view the full analysis from the report here: VZ Ratings Report