Verizon CEO Says 2016 Earnings May 'plateau'

By Tomi KilgoreMarketWatch Pulse

Verizon Communications Inc.'s stock shed 1.5% in premarket trade Thursday, after Chief Executive Lowell McAdam said full-year 2016 earnings "may plateau" at 2015 levels. The FactSet consensus is for 2016 earnings per share to rise to $4.06 from the 2015 consensus of $3.94. Speaking at an investor conference in New York, said consumer demand was disrupting the communications and cable company's traditional business models. He said near-term earnings headwinds include the commercial model change in wireless, wireline financial comparisons to year-ago results following the expected sale of assets to Frontier Communications Corp. and the building up of new business models for wireless video and the Internet of Things. McAdams said the company's aim is to transform around the capabilities of its high-performing networks. The stock has slipped 2.3% over the past three months, while the Dow Jones Industrial Average has dropped 6.7%.

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