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Verizon Positioned as a Leader in Top Analyst Firm's 2010 'Cloud Infrastructure as a Service and Web Hosting' Report
BASKING RIDGE, N.J., Jan. 14, 2011 /PRNewswire/ -- Gartner Inc. has positioned Verizon in the Leaders quadrant of the industry analyst firm's 2010 report, "Magic Quadrant for Cloud Infrastructure as a Service and Web Hosting."
The report (Gartner Research: "Magic Quadrant for Cloud Infrastructure as a Service and Web Hosting," L. Leung and T. Chamberlin, Dec. 22, 2010) examines 20 global providers of infrastructure-as-a-service and Web-hosting solutions and cites Verizon for its completeness of vision and ability to execute.
"We believe our placement in this report confirms Verizon's focus on delivering secure, high-performance cloud-based computing solutions to help enable better business outcomes for our enterprise clients," said Joseph S. Crawford, chief cloud strategist, Verizon Business. "Whether we are enabling businesses to be more agile or to find new ways of serving customers through the cloud, Verizon's 'everything-as-a-service' strategy continues to provide new benefits for companies moving beyond traditional IT-delivery models."
During 2010, Verizon accelerated its investment in cloud capabilities, including an expansion of its global cloud computing footprint. In August, the company announced field trials of Verizon Computing as a Service enabled by VMware vCloud™ Datacenter and is one of five cloud providers chosen by VMware worldwide to offer its new hybrid cloud technology. In September, the company introduced Verizon Computing as a Service, SMB, an online cloud service for small and medium businesses. The pay-as-you-go service is billed via a credit card. In November, the company announced Verizon UC&C with Microsoft Online Services, a cloud-based collaboration solution.
In addition, in July, the company announced the Verizon Health Information Exchange, a cloud-based service that enables the sharing of patient data.
Converged IT Services Via a Cloud Model
Verizon is evolving to an everything-as-a-service IT delivery model in which cloud-based, converged solutions are delivered with built in security via managed and professional services over the company's global IP network. Verizon is assembling the key components of this unique and powerful approach to serving enterprises. The everything-as-a-service platform – with Verizon's global IP network and data centers as its foundation – is at the heart of the company's strategy. Visit the Verizon IT Solutions website for more information.
About the Magic Quadrant
The Magic Quadrant is copyrighted 2010 by Gartner Inc. and is reused with permission. The Magic Quadrant is a graphical representation of a marketplace at and for a specific time period. It depicts Gartner's analysis of how certain vendors measure against criteria for that marketplace, as defined by Gartner. Gartner does not endorse any vendor, product or service depicted in the Magic Quadrant and does not advise technology users to select only those vendors placed in the Leaders quadrant. The Magic Quadrant is intended solely as a research tool and is not meant to be a specific guide to action. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.
About Verizon Business
Verizon Business, a unit of Verizon Communications (NYSE, Nasdaq: VZ), is a global leader in communications and IT solutions. We combine professional expertise with one of the world's most connected IP networks to deliver award-winning communications, IT, information security and network solutions. We securely connect today's extended enterprises of widespread and mobile customers, partners, suppliers and employees – enabling them to increase productivity and efficiency and help preserve the environment. Many of the world's largest businesses and governments – including 96 percent of the Fortune 1000 and thousands of government agencies and educational institutions – rely on our professional and managed services and network technologies to accelerate their business. Find out more at www.verizonbusiness.com.
VERIZON'S ONLINE NEWS CENTER: Verizon news releases, executive speeches and biographies, media contacts, high-quality video and images, and other information are available at Verizon's News Center on the World Wide Web at www.verizon.com/news. To receive news releases by e-mail, visit the News Center and register for customized automatic delivery of Verizon news releases.
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Verizon Communications Inc. (NYSE:VZ) – Q4 2010 Earnings Preview
By: iStockAnalyst Thursday, January 13, 2011 11:54 AM
Verizon Communications Inc. (VZ: 34.36, -1.1) is scheduled to report Q4-2010 results on Tuesday, January 25, 2011. In September 2010, and June 2010 quarters, the company's reported EPS exceeded analysts' consensus estimates by 3.7% and 3.57%, respectively. In March 2010 quarter, the company's reported EPS met analysts' consensus estimate of $0.56. However, in the quarter ending December 2009, the company's reported EPS of $0.54 fell short of analysts' consensus estimate of $0.55.
The communications services provider operates in two segments: Domestic Wireless and Wireline. Its Domestic Wireless products and services include wireless voice and data services and equipment sales across the United States. Wireline communications products and services include voice, internet access, broadband video and data, next generation internet protocol (IP) network services, network access, long distance and other services. It provides these products and services to consumers in the United States, as well as to carriers, businesses and government customers both in the United States and in 150 other countries worldwide.
On January 9, 2009, the company acquired Alltel Corporation (Alltel). In July 2010, Frontier Communications Corp acquired New Communications Holdings, Verizon's local wireline operations in 14 states.
The company reported a net income of $881 million, or $0.31 per share, for the third quarter ended September 30, 2010, compared to $1.18 billion, or $0.41 per share, for the same quarter of 2009. For the third quarter of 2010, operating revenue was $26.48 billion, compared to $27.26 billion for the corresponding quarter of 2009. Net income for the nine months ended September 30, 2010 was $1.09 billion, or $0.39 per share, compared to $4.3 billion, or $1.51 per share for the same period of 2009. Operating revenue for the nine months ended September 30, 2010 was $80.17 billion, compared to $80.72 billion for the same period of 2009.
Analysts' EPS estimates for the fourth quarter of 2010 range from a low of $0.53 to a high of $0.57, compared to a consensus estimate of $0.55 or year ago EPS of $0.54. Analysts' revenue estimates for the fourth quarter 2010 range from a low of $26.13 billion to a high of $26.77 billion compared with a consensus estimate at $26.45 billion or reported revenue of $27.09 billion in the same quarter a year ago. For the fourth quarter, the consensus EPS forecast has remained the same over the past week at $0.55 and remained the same over the past month at $0.55.
As of September 2010, VZ provided wireline services to 26.5 million access lines (down 8.5% from a year earlier excluding those sold), and, through its joint venture with Vodafone Group, had 93 million wireless customers plus approximately 8 million additional other connected devices on its network. Strong wireless rivalry has raised the level of competition, with new unlimited service plans and data-equipped devices gaining significant appeal in a highly penetrated market.
The stock closed on Wednesday at $35.47, compared to 52 week range of $25.99 and $37.7. In the last one year, the closing share price has gained $3.56 or 11.16%. I forecast 2011 EPS at $2.2, and see 2012's at $2.45. Based on these estimates, I set a target price of $33.8.