VZ Brushes Off Q1 Earnings, Revenue Beat

The mobile provider's subscriber count fell more than expected

Deputy Editor
Apr 21, 2021 at 9:27 AM
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The shares of Verizon Communications Inc. (NYSE:VZ) are slightly lower in electronic trading, last seen down 0.4% at $58.15, despite the company announcing a positive quarterly report. Specifically, the blue-chip mobile provider reported first-quarter earnings of $1.31 per share on revenue of $32.9 billion, both of which came in above Wall Street's estimates. However, Verizon lost 178,000 subscribers during the quarter, much more than the 121,700 anticipated by analysts.

On the charts, VZ has had a muted week, notching two-consecutive closes of $58.39. Today's negative price action could see the equity face off with the 200-day moving average after three straight closes above the trendline. In addition, Verizon stock now sits just a hair below its 2021 breakeven.

At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the security sports a 50-day call/put volume ratio of 4.68, which stands higher than 73% of readings from the past 12 months. This means calls have been picked up at a relatively quicker-than-usual clip during the past 10 weeks, indicating a bullish stance in the options pits. 

And options could be the right way to play VZ, as the equity's Schaeffer's Volatility Index (SVI) of 16% stands in the low 15th percentile of its annual range. This implies these traders have been pricing in relatively low volatility expectations at the moment -- a boon for premium buyers.

 

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