Verizon has reported a Q4 loss of  USD 2.02 billion compared with a profit of USD2.64 billion in the comparable period  a year earlier related to a charge for revaluation Verizon’s pension plan. However, revenue increased 7.7% to USD 28.44 billion, slightly above the USD28.40 billion expected by Thomson Reuters.
 
Her subsidiary, Verizon Wireless has added 1.5 million of  contract subscribers. Ebitda has decreased to 47% from 42% a year earlier. Profit margin has suffered due to the company offers a discount price for iPhone or other 4G devices in exchange for agreeing to a several year commitment.
 
From a fundamental viewpoint, Verizon is trading at a moderate level compared with competitors. Its “enterprise value/revenue” ratio is estimated at 1.27x for 2012. As the chart remarked (financial heading), earning per share should reach to USD 2.5 from USD 0.7 right now.
 
Technically, in daily chart, we can notice high volatility during the end of year. Several gaps serve to illustrate this observation. It should be stressed that Verizon’s stock has risen by 8.4% over the past month, bolstered by general upward trend on U.S stocks markets.
 
Since early january, the share is falling to the support at USD 36.90, filling the last bullish upside gap. Fourth quarter loss and profit-taking mainly explain this decrease.
 
Thus, it would be advisable for investors to take a buy order on the support at USD 36.90 and to aim at USD 39. Then, USD 40.10 would be another target price. If the security drops below USD 36.90, this strategy will be cancelled.