Verizon Q1 Profit Declines

Elena
30 Apr, 2007
New York City

Verizon said its operating revenue rose 6.4% to $22.58 billion from $21.23 billion a year ago. Analysts had been expecting a profit of 53 cents a share on revenue of $22.49 billion. The company said its Verizon Wireless operations helped increase the company''s total number of customers by 14.5% to 60.7 million. The stock added 1.2% in pre-market trading.

[R]8:15AM Verizon Communications posted Q1 profit decrease.[/R]
Verizon Communications Inc. ((VZ)) posted Q1 earnings of $1.5 billion, or 51 cents a share, compared with a year-ago profit of $1.63 billion, or 56 cents a share. The latest results include an extraordinary loss of $131 million, or 5 cents a share, related to the Venezuelan government''s nationalization of telecommunication services. The company said its net income before special items came to $1.63 billion or 56 cents a share, down from profit of $1.75 billion, or 60 cents a share last year.

Operating revenue rose 6.4% to $22.58 billion from $21.23 billion a year ago. Analysts had been expecting a profit of 53 cents a share on revenue of $22.49 billion. The company said its Verizon Wireless operations helped increase the company''s total number of customers by 14.5% to 60.7 million. Verizon also said it expects strong demand for its FiOS TV offering, adding a net 141,000 new customers in the quarter. The stock added 1.2% in pre-market trading.


[R]8:00AM NY-7:00PM Mumbai Sensex ends slightly lower on a late recovery.[/R]

The Sensex on BSE finished 36.21 points, or 0.26%, lower at 13,872.37.

The market-breadth was positive as there were close to three gainers for every two decliners. As 1,403 stocks advanced, 1,071 declined and 75 stocks remained unchanged. Of the 30 stocks in the Sensex, 18 advanced, while the rest declined. The turnover on BSE was Rs 3,255 crore, lower than RS 3,770.65 crore on Friday. On NSE, the turnover was Rs 7571.21 crore, compared with Rs 8,222.24 crore on Friday.

Economic news

The government today announced that it was considering export of 15 lakh tons of the commodity though international prices are not favorable. Sugar production in 2006-07 was provisionally estimated to be over 250 lakh tons and there was a carry over surplus of last season of 44 lakh tons, while the estimated consumption stood at 190 lakh tons.

India will probably t issue a tender this week for the import of 1 million tons of wheat on account of low obtaining of domestic grain by government agencies.

Trading highlights

Reliance Communications was the most-active stock with a turnover of Rs 160.70 crore followed by IFCI and Reliance Industries.

Advancers

Reliance Communications soared nearly 4% to Rs 477, leading the advancers. Reliance Comms today posted a consolidated net profit of Rs 1,024.41 crore in the fourth-quarter of fiscal 2007. It did not give figures in the corresponding period last year. As per available data, Reliance Comms had a consolidated net profit of Rs 440 crore in the fourth-quarter of fiscal 2006.

IT firms advanced as the market awaited changes, regarding a proposal in the Union Budget 2007-08 for bringing employee stock options plans under the fringe benefit tax. TCS rallied 2.5% to Rs 1,266, Infosys advanced over 2% to Rs 2,049, and Satyam added 1% to Rs 473.

Reliance Industries added over 1% to Rs 1,560. Reliance had on Thursday posted stronger-than-expected 14% growth in net profit in the fourth-quarter of fiscal 2007. Maruti and HDFC Bank gained 1% each at Rs 803 and Rs 1,026, respectively. Hero Honda, Tata Steel moved up over 2% each to Rs 684 and Rs 550, respectively. ACC also added 2% to Rs 839 and Grasim gained 0.5% to Rs 2,435.

Decliners

ICICI Bank plunged to a low of Rs 844 on concern of equity dilution on the bank plan to raise Rs 20,000 crore through fresh issue from the domestic and overseas markets. The bank finally closed with a loss of over 7% at Rs 866.

Hindustan Lever lost nearly 5% to Rs 199. Hindustan Lever reported that net profit, excluding extraordinary gains, rose 13.6% to Rs 334 crore from Rs 294 crore. Cipla shed 3% to Rs 211 and oil company ONGC declined nearly 2% to Rs 912. Bharti Airtel and HDFC slid over 1.5% each to Rs 812 and Rs 1,660, respectively.


[R]6:30AM European stocks gain Monday on Telecom Italia and Telefonica deal.[/R]
European markets were higher in morning trade on Monday. The U.K. FTSE 100 index rose 0.8% at 6,471.50, the German DAX Xetra 30 index increased 0.4% at 7,405.80 and the French CAC-40 index advanced 0.4% at 5,952.73. National benchmarks increased in 13 of the 16 western European markets that were open.

Advancers

Telecom Italia advanced 1.5% after Spanish phone company Telefonica and a group of Italian financial large-caps Saturday bought 100% of Telecom Italia largest shareholder, finishing a long battle over control of the main telecommunications operator in Italy in a 4.1 billion euro deal. Telefonica shares rose 0.6%.

Oil and gas companies were higher with BP gaining 0.6% after a report that it is leading the race to buy a controlling stake in Pakistan State Oil in a deal worth around $600 million. Shares in Eni advanced 0.2% as it agreed to buy the Gulf of Mexico upstream assets of Dominion for $4.76 billion in cash.

Decliners

Bank deals hogged the limelight as well, with ABN Amro shares off 0.1% after an Amsterdam court announced on Saturday that it would decide next Thursday on whether or not to freeze the sale of ABN Amro LaSalle Bank to Bank of America.

Turkish lira plunged the most in 11 months and bonds and stocks slumped after the military threatened to block the presidential candidate of the ruling party because of his support for Islamist causes.

Oil and precious metals

Crude oil declined in New York as worries abated that supplies from Saudi Arabia would be disrupted, after security forces crushed a plot to attack oil fields and refineries in the world largest producer of petroleum. Crude oil for June delivery was at $66.13 a barrel, down 33 cents, on the New York Mercantile Exchange. In London, Brent crude oil for June settlement was at $68.14 a barrel, down 21 cents, in electronic trading on the ICE Futures exchange.

Gold for immediate delivery dropped $4.10, or 0.6% to $677.45 an ounce in early trade in London.. Silver fell 7.5 cents to $13.46 an ounce, after a drop of 2.9% last week.

Currencies

The U.S. dollar was mostly higher against other major currencies in European trading Monday morning. The euro traded at $1.3607, down from $1.3643 late Friday in New York. The British pound traded at $1.9918, down from $1.9970. The dollar fetched 119.61 Japanese yen, down from 119.65.