mocoNews - Verizon Wireless Expects To Beat Its Own Profit Margin Goals
Tuesday, May 19, 2009; 8:59 PM
Verizon Communications (NYSE: VZ) provided a very bullish outlook on the company's financial position of its wireless unit today, by saying that it will likely beat its own estimates of achieving 43 percent to 45 percent profit margins, Reuters reports.
The company's CFO John Killian said today that unless there are unusual circumstances, they should be able to beat the target. He said: "I think there's opportunity, as we've shown, to drive past that." He did not provide any new range.
Interestingly, Killian said Verizon Wireless would not compete enter the frantic prepaid market, which is currently undergoing a pricing war. The new bottom seems to be $50 a month for unlimited calling and some data?as set by Boost Mobile, Virgin Mobile USA (NYSE: VM) and other regional players. "We do not believe its the right strategy for us to go out with any unlimited plan," he said. However, the one discount that it does expect to continue is its first-quarter promotion of offering two BlackBerrys for the price of one. That should be welcomed news to Research In Motion.