Market Update (NYSE:VZ): Exclusive – Verizon launches auction to sell data centres – sources

[Reuters] – A sale would represent the latest effort by Verizon, the No. 1 U.S. wireless carrier, to streamline its portfolio following a divestment last year of a chunk of its landline business and a portfolio of wireless towers. It would also mark a reversal of its strategy to expand in hosting and colocation services after it acquired data centre operator Terremark Worldwide Inc in 2011 for $1.4 billion. The so-called ‘colocation’ portfolio up for sale includes 48 data centres, and generates annual earnings before interest, tax, depreciation and amortization of around $275 million, one of the people said. Read more on this. Verizon Communications Inc. (VZ) , currently valued at $189.20B, opened this morning at $46.15. During the trading session, VZ traded between $45.63 to $46.55 with a trailing 52-week range being $38.06 to $50.86. VZ shares are currently priced at 11.61x this year’s forecasted earnings, which makes them relatively inexpensive compared to the industry’s 23.38x forward p/e ratio. And for passive income investors, the company pays shareholders $2.26 per share annually in dividends, yielding 4.89%. According to a consensus of 25 analysts, the earnings estimate of $0.88 per share would be $0.17 better than the year-ago quarter and a $0.00 sequential decrease. What we find to be interesting is that the full-year EPS estimate of $3.98 is a $0.63 better when compared to the previous year’s annual results. The quarterly earnings estimate is predicated on a consensus revenue forecast of $34.13 Billion. If reported, that would be a 2.83% increase over the year-ago quarter. More recently, Buckingham Research Initiated VZ at Neutral (Jul 2, 2015). Previously, JP Morgan downgraded VZ from Overweight to Neutral. With the above information in mind, readers should note that the average price target is $50.19, which is 8.75% above where the stock opened this morning. See more in (NYSE:VZ) Similar Articles: Market Update: Verizon Communications Inc (NYSE:VZ) – Exclusive: Verizon weighing $10 billion sale of enterprise assets – sources Market Update: Verizon Communications Inc (NYSE:VZ) – Verizon (VZ) Stock Gains on Unlimited Data Plan Hike Market Update: Verizon Communications Inc (NYSE:VZ) – Verizon May Not Sell Remaining Wireline Assets in the Near Term