Value Investing

Vladimir Dimitrov, CFA

Equity Bottom-Up

Verizon Communications / Equity Bottom-Up

<ul>
<li>Verizon emerges from a second year in a row of disappointing shareholder returns.</li>
<li>The halo effect of Berkshire Hathaway leaving is also contributing to sentiment becoming very one-sided.</li>
<li>Verizon is still well-positioned to deliver on its strategy while offering a 6.3% dividend yield.</li>
</ul>


Verizon emerges from a second year in a row of disappointing shareholder returns.
The halo effect of Berkshire Hathaway leaving is also contributing to sentiment becoming very one-sided.
Verizon is still well-positioned to deliver on its strategy while offering a 6.3% dividend yield.


Verizon Stock: I See No Reason To Panic After Recent Guidance

Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

<ul><li>Verizon delivered a decent result in the recent quarter with revenues above Wall Street expectations and earnings on par.</li><li>This was another strong mobility quarter in Verizon Business Group and ongoing success in fixed wireless access with net additions up sequentially in both consumer and business, the increase in consumer performance was complemented.</li><li>However, given the increasing significance of the internet and mobility for consumers and enterprises, demand for their service is still high.</li></ul>

Verizon delivered a decent result in the recent quarter with revenues above Wall Street expectations and earnings on par.This was another strong mobility quarter in Verizon Business Group and ongoing success in fixed wireless access with net additions up sequentially in both consumer and business, the increase in consumer performance was complemented.However, given the increasing significance of the internet and mobility for consumers and enterprises, demand for their service is still high.

Verizon Communications: The +Play Launch & Other Drivers

<ul><li>Verizon ended the quarter with a wireless service revenue increase of 10% over the prior year and 2% over the previous quarter, surpassing Wall Street expectations.</li><li>With consumers responding well to the company's new offerings and thus increasing store traffic, its Consumer segment has begun to gather traction.</li><li>Their Welcome plan also enhanced customers' perceptions of cost, which helped to increase consumer phone gross adds year over year.</li></ul>

Verizon ended the quarter with a wireless service revenue increase of 10% over the prior year and 2% over the previous quarter, surpassing Wall Street expectations.With consumers responding well to the company's new offerings and thus increasing store traffic, its Consumer segment has begun to gather traction.Their Welcome plan also enhanced customers' perceptions of cost, which helped to increase consumer phone gross adds year over year.

Verizon Communications: Enterprise Intelligence Campaign & Other Drivers

Asset Allocation & Fund Positioning, Copley Fund Research

Steven Holden

Asset Allocation & Fund Positioning

Copley Fund Research

Copley Fund Research provide research and data on asset allocation among Global and Emerging Market equity funds.  The analysis details absolute and relative positioning across countries, sectors and industries together with highly granular data on single stock and single fund allocations.  The data is updated monthly with time series going back to January 2011.

Global Research - Analysis of 165 prominent Global equity funds, combined AUM $335bn
GEM Research - Analysis of 127 prominent global EM equity funds, combined AUM $250bn

Asset Allocation - Global and GEM Equity

Thematic (Sector/Industry)

<ul>
<li>Communication Services allocations among active Global managers are at their lowest levels on record.</li>
<li>Average weights stand at an all-time low of 7.12%, having broken out of a decade long range of between 8% - 10% towards the end of 2021.</li>
<li>Activision Blizzard suffered the worst of the position closures, alongside Meta Platforms, Tencent and Nintendo Co Ltd.</li>
</ul>


Communication Services allocations among active Global managers are at their lowest levels on record.
Average weights stand at an all-time low of 7.12%, having broken out of a decade long range of between 8% - 10% towards the end of 2021.
Activision Blizzard suffered the worst of the position closures, alongside Meta Platforms, Tencent and Nintendo Co Ltd.


Global Communication Services: Lowest Exposure on Record

<ul><li>Verizon Communications had a below par performance in the quarter as the inflationary pressure has been impacting consumer behavior resulting in the company failing to match earnings expectations and just about beating revenue expectations of Wall Street.</li><li>The company updated its financial guidance by lowering its expectations of other revenue and service.</li><li>The company launched its plan Welcome Unlimited for consumers wireless which will meet the requirements of budget-conscious consumers without offering device subsidies.</li></ul>

Verizon Communications had a below par performance in the quarter as the inflationary pressure has been impacting consumer behavior resulting in the company failing to match earnings expectations and just about beating revenue expectations of Wall Street.The company updated its financial guidance by lowering its expectations of other revenue and service.The company launched its plan Welcome Unlimited for consumers wireless which will meet the requirements of budget-conscious consumers without offering device subsidies.

Verizon Communications Inc: Navigating Through A Challenging Business Environment

United States

Verizon Communications Inc. is an integrated telecommunications company that provides wire line voice and data services, wireless services, Internet services, and published directory information. The Company also provides network services for the federal government including business phone lines, data services, telecommunications equipment and payphones.

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Verizon Communications (VZ US)

Verizon Stock: I See No Reason To Panic After Recent Guidance

Verizon emerges from a second year in a row of disappointing shareholder returns. The halo effect of Berkshire Hathaway leaving is also...

Vladimir Dimitrov, CFA

Verizon Communications: The +Play Launch & Other Drivers

Verizon delivered a decent result in the recent quarter with revenues above Wall Street expectations and earnings on par. This was another strong...

Baptista Research

Verizon Communications: Enterprise Intelligence Campaign & Other Drivers

Verizon ended the quarter with a wireless service revenue increase of 10% over the prior year and 2% over the previous quarter, surpassing Wall...

Baptista Research

Global Communication Services: Lowest Exposure on Record

Selling in Activision Blizzard, Meta Platforms, Tencent and Nintendo Co Ltd force Communication Services allocations to their lowest levels on record.

Steven Holden

Verizon Communications Inc: Navigating Through A Challenging Business Environment

Verizon Communications had a below par performance in the quarter as the inflationary pressure has been impacting consumer behavior resulting in...

Baptista Research

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