NEW YORK (TheStreet) -- Shares of Verizon Communications (VZ) are down 3.62% to $47.13 after the nation's largest wireless carrier warned late Monday that its profits are coming under pressure at the end of the year as it rolls out discounts in an effort to win customers, the Wall Street Journal reports.
The carrier also said more of its customers were leaving for other carriers this quarter than in the last quarter, or last year, amid heavy promotions from rivals, the Journal added.
The company said the cost of those promotions would hurt its wireless margins, overall margins and earnings per share, according to the Journal.
Canaccord Genuity maintained its "buy" rating and price target of $56 on the firm today following the news, but warned "higher retail postpaid churn raises the specter of potential share losses and likely rattles investors' nerves if the market leader again shows signs of susceptibility to industry price competition."
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, notable return on equity, compelling growth in net income, expanding profit margins and growth in earnings per share. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."