US Carriers Spanked on Big Red's Q4 Margin Squeeze
Verizon's warning about holiday price pressures hitting mobile margins in its winter quarter has cast a chill on the other major US carriers too.
AT&T Inc. (NYSE: T), Sprint Corp. (NYSE: S), T-Mobile US Inc. and Verizon Communications Inc. (NYSE: VZ) all saw their share prices fall on Tuesday, following Big Red's warning that holiday pricing offers and heavy customer volume will squeeze its fourth-quarter wireless margins. (See Holiday Deals Squeeze Verizon's Q4 Wireless Margins.)
Verizon was also downgraded by two financial analyst firms Tuesday following the warning. Robert W. Baird & Co. Inc. lowered its rating on Verizon Communications from "Outperform" to "Neutral" this morning. Credit Suisse , meanwhile, lowered Verizon's share price target from $52.00 to $51.00 Tuesday morning.
Verizon is trading at $46.85, down $2.05 or 4.19%, this Tuesday morning. The other major US carriers are also feeling the tailwinds from Verizon's announcement though.
AT&T is trading down $0.90 -- or 2.66% -- at $32.98 this morning. Sprint is at $4.60, down $0.15 or 3.16%, on the street. T-Mobile's shares have fallen 5.25% to $26.72 in early trading.
Happy holidays, service providers!
— Dan Jones, Mobile Editor, Light Reading