Verizon To Record Up To $1.9 Billion In Costs For Layoffs, Asset Sales In Q3
Portfolio Pulse from Anusuya Lahiri
Verizon Communications Inc (NYSE:VZ) is set to record up to $1.9 billion in costs for layoffs and asset sales in Q3 2024. The company plans to downsize 4,800 employees and discontinue certain real estate assets. Verizon recently reported a slight topline growth and agreed to acquire Frontier Communications for $20 billion.
September 12, 2024 | 6:20 pm
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Verizon is incurring up to $1.9 billion in costs for layoffs and asset sales in Q3 2024. The company is downsizing 4,800 employees and discontinuing certain assets. Despite a slight topline growth, Verizon is acquiring Frontier Communications for $20 billion.
The significant costs associated with layoffs and asset sales are likely to negatively impact Verizon's short-term financial performance. However, the acquisition of Frontier Communications could be seen as a strategic move for long-term growth. The immediate market reaction may focus on the costs, leading to a short-term negative impact on the stock price.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100
NEUTRAL IMPACT
Investors can gain exposure to Verizon through the Invesco Dow Jones Industrial Average Dividend ETF, which may be impacted by Verizon's financial activities.
The ETF's performance may be indirectly affected by Verizon's financial activities, but the impact is likely to be moderate given the diversified nature of the ETF.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50
NEUTRAL IMPACT
The SPDR Portfolio S&P Sector Neutral Dividend ETF provides exposure to Verizon, which may influence the ETF's performance due to Verizon's recent financial activities.
Similar to DJD, the SPDG ETF's performance may be influenced by Verizon's financial activities, but the impact is expected to be moderate due to the ETF's diversified holdings.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50
POSITIVE IMPACT
Verizon's acquisition of Frontier Communications for $20 billion is a major development. This acquisition could lead to changes in Frontier's operations and market position.
The acquisition by Verizon is likely to be seen positively for Frontier Communications as it could lead to enhanced operational capabilities and market reach. This news is expected to have a positive short-term impact on Frontier's stock price.
CONFIDENCE 90
IMPORTANCE 85
RELEVANCE 80