White Paper - Telecommunication (AT&T) Top 2 Companies The...

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Top 2 Companies The top two companies in the telecommunication industry are AT&T, with revenue of 123,018.0 (in millions), and Verizon Communications, with revenue of 107,808.0 (in millions). Financial Information The revenue for AT&T is 123,018.0 million; return on equity is 19.84%; return on investment is 4.8%; earning per share is 2.12; market capitalization is 166.31 billion; stock price is 27.93. The revenue for Verizon Communications is 107,808.0 million; return on equity is 1.08%; return on investment is 3.8%; earning per share is 1.29; market capitalization is 91.45 billion; stock price is 32.21. Top 2 Issues Facing Companies AT&T missed the year’s stock market rally. In addition to that, their stock was down 2%. The problem is growth, or lack thereof: little in its saturated wireless business and a decline in landlines, which still accounts for 25% of sales. Stock is important in valuing the company and investing. If stock price is declining, people will lose confidence in it. Also, if twenty-five percent of sales result from something that is declining, it will pose as an issue for the company. Verizon missed the year’s stock rally as well. In the year period ending April 1, Verizon's stock was down almost 4%. Stock decrease is an issue that both top companies are dealing with in telecommunications industry. Verizon is not growing; analysts project an average annual earnings growth rate of just 5% over the next few years. For five years, growth of five percent is not stellar. One of Verizon’s main issues will be how to stimulate growth and innovation in its company.
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This note was uploaded on 06/05/2011 for the course GEB 3931 taught by Professor Dr.ashley during the Fall '11 term at Florida A&M.

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White Paper - Telecommunication (AT&T) Top 2 Companies The...

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