VZ: Summing up our pre-Q calls, post-FYBR merger, and reporting changes
It took some work, but we have updated our Verizon model for a myriad of updates. These include inputs from our Conference 2 weeks ago, our pre-quarter conversations including meeting the new head of IR, the FYBR merger, and expected reporting changes. Verizon is on its way to becoming a truly converged mobile and fixed broadband company as it now passes over 30MM fiber locations and is aiming to pass between 40MM and 50MM fiber locations in the long term. Operational expense rationalization and pivot from price to volume-led growth should help position the company for more balanced, sustainable growth. But there is a lot of wood to chop. We need to see evidence of sustained wireless subscriber additions, ARPU stability, and margin expansion before Verizon can declare victory. We remain Neutral with a $51 PT.Verizon Communications is a holding company. Through its subsidiaries, the company provides communications, information and entertainment products and services to consumers, businesses and governmental agencies. The company has two reportable segments, Verizon Consumer Group (Consumer) and Verizon Business Group (Business). The company's Consumer segment provides consumer-focused wireless and wireline communications services and products under the Verizon brand and through wholesale and other arrangements. The company's Business segment provides, among others, wireless and wireline communications services and products, video and data services, corporate networking solutions, security and managed network services.
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