For Immediate Release
Chicago, IL – December 12, 2014 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include the Verizon Communications Inc. (VZ-Free Report), AT&T Inc. (T-Free Report), Sprint Corp. (S-Free Report), T-Mobile US Inc. (TMUS-Free Report) and Orange (ORAN-Free Report)
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.
Here are highlights from Thursday’s Analyst Blog:
Telecom Stock Roundup
Last week, the telecom industry hit by a purple patch with all major telecom stocks losing value. This resulted from the disappointing financial outlook provided by telecom behemoths Verizon Communications Inc. (VZ-Free Report) and AT&T Inc. (T-Free Report).
Cutthroat pricing competition is compelling large telecom operators to indulge in higher promotional activities. While Sprint Corp. (S-Free Report) is offering same data plan as Verizon and AT&T at 50% discount, T-Mobile US Inc. (TMUS-Free Report) introduced a pocket-friendly LTE family data plan.
Meanwhile, outside the U.S., French telecom operator Orange (ORAN-Free Report) is awaiting a decision from BT Group Plc on whether the latter wants to bid for EE in the U.K. by Christmas.
Recap of the Week’s Most Important Stories
1. Telecom stocks took a beating yesterday after leading wireless carriers, AT&T and Verizon hinted at expectations of lower profits in the ensuing fourth quarter owing to intense competition. Yesterday, AT&T’s chief financial officer expressed fears of facing considerably wider fourth-quarter churn rate than the year-ago quarter. However, the company expects to add customers in spite of this.
AT&T also expects higher promotional expenses to hurt wireless service margins in the quarter. On Dec 8, 2014, Verizon announced expectations of lower earnings in the final quarter of 2014, owing to higher promotional expenses and price cuts. These strategies are likely to impact the company’s wireless segment EBITDA and EBITDA service margin as well. (Read More: Telecom Stocks Down on Fears of Lower Q4 Earnings.)
2. T-Mobile US has announced the launch of a new family plan which offers unlimited talk-time, voice messages, text messages and 4G LTE data. While the other national carriers are still marketing their complex shared data plans, with this new scheme, T-Mobile aims to enhance value and benefits for customers while also simplifying it.
The new Simple Choice plan begins at a nominal $100 per month for two people and is available from Dec 10, 2014 for a limited period. However, customers can carry on with the plan beyond the offer period. (Read More: T-Mobile Intros Pocket-Friendly Unlimited 4G Family Plan.)
3. French telecom giant Orange expects to complete its operational restructuring process in Europe this year itself. The company is presently awaiting a decision from BT Group on whether it wants to bid for EE in the U.K. Notably, EE is jointly held by Orange and Deutsche Telekom of Germany.
In the meantime, Orange is also positive about its proposed acquisition of Jazztel Plc., which offers broadband services along with fixed-line and mobile phones services to enterprise and consumer markets in Spain. (Read More: Orange's Europe Restructuring Hinged on BT Group Decision.)
5. Early this week, the rumour of Vodafone mulling over the acquisition of Liberty Global was making rounds of the U.K. telecom circle. However, the week comes to an end with Vodafone invalidating the Liberty Global merger talks. Vodafone is presently striving to fortify its fixed-broadband network. Vodafone expects introduction of fixed broadband service in the U.K. will help the company maintain its position in the wireless market as well. (Read More: Vodafone Brushes off Rumors of Acquiring Liberty Global.)
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.
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