Verizon shares gain the most in one month on Tuesday, second-quarter revenue, earnings top estimates on subscriber growth

Verizon Communications Incs (VZ) second-quarter revenue and earnings, reported on Tuesday, outstripped Wall Street estimates, since the US wireless carrier managed to add more subscribers who pay a monthly bill on a net basis.

Verizon shares closed higher for a second consecutive trading session in New York on Tuesday. It has also been the sharpest daily surge since June 28th. The stock went up 1.50% ($0.76) to $51.51, after touching an intraday high at $51.87, or a price level not seen since July 17th ($51.94).

Shares of Verizon Communications Inc have retreated 2.68% so far in 2018 compared with a 5.49% gain for the underlying index, S&P 500 (SPX).

In 2017, Verizon’s stock went down 0.84%, thus, it again underperformed the S&P 500, which registered a 19.42% return.

Verizons total operating revenue surged to $32.20 billion during the second quarter ended on June 30th, from $30.55 billion in the same period a year earlier. In comparison, analysts on average had expected $31.78 billion in revenue.

Net income attributable to shareholders, on the other hand, shrank to $4.12 billion ($1.00 per share) during the past quarter, from $4.36 billion ($1.07 per share) in the year-ago period.

Excluding special items, Verizon earned $1.20 per share during the second quarter, which exceeded the median analyst estimate pointing to earnings of $1.14 per share.

Meanwhile, 398 000 subscribers with unlimited data plans were added during the latest quarter compared with 352 000 subscribers expected by analysts on average.

The largest wireless carrier in the United States now forecasts low-to-mid single-digit revenue growth for the full fiscal year as a result of improving equipment revenue trends.

According to CNN Money, the 26 analysts, offering 12-month forecasts regarding Verizon Communications Inc’s stock price, have a median target of $56.00, with a high estimate of $63.00 and a low estimate of $45.00. The median estimate represents an 8.72% upside compared to the closing price of $51.51 on July 24th.

The same media also reported that 16 out of 32 surveyed investment analysts had rated Verizon Communications Inc’s stock as “Buy”, while other 16 – as “Hold”.

Daily and Weekly Pivot Levels

With the help of the Camarilla calculation method, today’s levels of importance for the Verizon stock are presented as follows:

R1 – $51.68
R2 – $51.84
R3 (Range Resistance – Sell) – $52.01
R4 (Long Breakout) – $52.51
R5 (Breakout Target 1) – $53.10
R6 (Breakout Target 2) – $53.38

S1 – $51.34
S2 – $51.18
S3 (Range Support – Buy) – $51.01
S4 (Short Breakout) – $50.51
S5 (Breakout Target 1) – $49.92
S6 (Breakout Target 2) – $49.64

By using the traditional method of calculation, the weekly levels of importance for Verizon Communications Inc (VZ) are presented as follows:

Central Pivot Point – $50.97
R1 – $51.59
R2 – $52.56
R3 – $53.18
R4 – $53.80

S1 – $50.00
S2 – $49.38
S3 – $48.41
S4 – $47.44