Verizon Communications Inc. (NYSE:VZ) reported second-quarter earnings reflecting strong profitability and customer retention at Verizon Wireless, a repositioning of the wireline network footprint and cost structure, and scaling of new growth markets in mobile video and the Internet of Things (IoT).

Second-quarter 2016 EPS of 17 cents compared with $1.04 per share in second-quarter 2015. Adjusted second-quarter 2016 earnings (non-GAAP) of 94 cents per share excluded significant non-operational items related to mark-to-market pension and benefit re-measurements, early debt redemption and tender offers, and a gain from the sale of local landline businesses. Also, earnings were negatively impacted by about 7 cents per share in second-quarter 2016 by a seven-week work stoppage in wireline.

In first-half 2016, Verizon Wireless added a net of 1.3 million postpaid connections, while stabilizing wireless service revenue declines, maintaining strong customer retention, densifying networks in major markets and advancing 5G deployment. Verizon also completed the sale of local landline businesses in three states, and it negotiated new labor contracts that will generate approximately $500 million in cash savings over the term of the contracts.

During second-quarter 2016, Verizon converted its go90 application to the AOL platform, supporting the ability to expand and monetize mobile video offerings. In June the company also announced an agreement to acquire Telogis to expand its global telematics offerings.

Yesterday, Verizon announced it had entered into a definitive agreement to acquire Yahoo’s operating business for approximately $4.8 billion, in a transaction expected to close in first-quarter 2017.

McAdam said, “By acquiring Yahoo, we are scaling up to be a major competitor in mobile media. Yahoo is a complementary business to AOL, giving us market-leading content brands and a valuable portfolio of online properties and mobile applications that attract over 1 billion monthly active consumer views. We expect this acquisition to put us in a great position as a top global mobile media company and give us a significant source of revenue growth for the future.” (Original Source)

Shares of Verizon is currently trading at $55.42, down $0.45 or -0.81%. VZ has a 1-year high of $56.95 and a 1-year low of $38.06. The stock’s 50-day moving average is $54.24 and its 200-day moving average is $51.00.

On the ratings front, Verizon has been the subject of a number of recent research reports. In a report released yesterday, RBC analyst Jonathan Atkin reiterated a Buy rating on VZ, with a price target of $56, which represents a slight upside potential from current levels. Separately, on July 20, Oppenheimer’s Timothy Horan downgraded the stock to Hold .

According to, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Jonathan Atkin and Timothy Horan have a total average return of 15.5% and 7.0% respectively. Atkin has a success rate of 77.8% and is ranked #120 out of 4079 analysts, while Horan has a success rate of 70.3% and is ranked #30.

Overall, 10 research analysts have assigned a Hold rating and 5 research analysts have given a Buy rating to the stock. When considering if perhaps the stock is under or overvalued, the average price target is $51.50 which is -7.8% under where the stock closed yesterday.