A group of shares that was punished during this current market is Telecom. On Tuesday they received little respite, on news about comments from a top manager at one of their established companies.
Much telecom fell into the gloom that trade session, including large dogs AT&T (NYSE: T) And T-Mobile us (Nasdaq: Tmus); The pair closed the day almost 5% and 4% in price respectively. Even associated companies felt the pain, with network specialist Airways (NYSE: CIEN) Losing more than 2% of its value, despite publishing a Beat Quarterly Vinste report.
In an industrial conference that was probably not as festive as some had hoped, Verizon Chief Revenue Officer Frank Boulben made a few comments that investors led to withdraw from sector shares.
Boulben described the current first quarter as full of an “increased level of competition intensity”. That kind of environment is not so conducive to growth, and accordingly Boulben Postpaid contract expects gross additions to his company that is flat or even somewhat negative for the quarter.
What also does not help Verizon or Peer Telecom is raised device retention. He said that consumers on average keep their telephone models more than 41 months before they upgrade. That number was well lower in the recent past, after 24 months.
Since Verizon, together with AT&T, is something of a pacesetter, it has what it sees on the landscape directly influence the sentiment of the wider telecom industry. If the company is struggling, it is likely that the smaller boys are already dealing with headwind, or soon.
The breaching optimism of the market was reflected in the investor reaction to Ciena’s other encouraging tax first quarter of 2025 Winstrelease, published before market hours.
For the period, the network company recorded $ 1.07 billion in income, which was 3% higher on an annual basis. Non-Gaap (generally accepted accounting principles) Adapted net income had fallen, but not with many, at $ 94 million ($ 0.64 per share) by the first quarter of the profit of almost $ 97 million of the tax 2024.
Both headline figures, in particular the bottom-line result, were at the top of the estimates of the $ 1.05 billion consensus analysts on the top rule and $ 0.42 per share for adapted net income.
Boulben’s comments come at a time when investors are a bit nervous about the possible effect of rates on telecom shares. These charges have not been as aggressive or broad as many suspects, but they may affect some of the raw materials used for telecom equipment. This sector is not yet out of the forest and investors must remain careful.
