TelecomFinancial Statement AnalysisBellsouth CorporationSBC Communications Inc Verizon
... Then came the 1996 Telecommunications act allowing any communications company to compete in any market. Bellsouth, SBC Communications and Verizon all evolved as a result of these events. ... Verizon began as Bell Atlantic, becoming Verizon in 2000 when Bell Atlantic merged with GTE. Verizon is the largest telecom company. ... SBC Communications, the second largest telecom company formed from Southwestern Bell. ... Bellsouth also has four operating segments; communications group, domestic wireless, Latin America and Domestic advertising and publishing. The communications group provides wireline, long distance, broadband services and data equipment and accounts for 79% of Bellsouth’s operating revenue. ... Ratios When computing the ratios for Verizon, SBC Communications, and Bellsouth, all data was obtained from the respective companies annual report and 10-K filing. ... Verizon Ratio Formula Calculation Earnings per share 0. ... 75 Stockholders equity 12/31/00 $34,578 Stockholders equity 12/31/01 $32,539 Average stockholders equity $33,559 Source: Verizon 2001 Annual Report SBC Communications Ratio Formula Calculation Earnings per share 2. ... 70 Stockholders equity 12/31/00 $30,463 Stockholders equity 12/31/01 $32,491 Average stockholders equity $31,477 Source: SBC Communications, Inc. ... Company Comparison Ratio Verizon SBC Bellsouth Earnings per share 0. ... Verizon’s earnings per share were affected greatly by September 11. Because Verizon has headquarters in New York City, the company incurred many expenses relating to disruption of service and restoration costs. Verizon estimates that its resulting per share earnings without these issues would have been $3. ... Verizon’s strategy is to focus its efforts in wireless and long distance services. Verizon experienced revenue growths in its Domestic Wireless and International segments. Verizon’s increased revenues were the result of sales in wireless and long distance, were Verizon focuses its efforts. Verizon also experienced cost savings as the result of its merger. ... Verizon’s P-E ratio is dramatically higher than both SBC’s and Bellsouth’s PE ratios. Because P-E ratio uses earnings per share as a denominator, Verizon’s P-E may be so high because investors saw that earnings were low because of September 11, and are still willing to pay a higher price for the stock. Another possible reason is that investors see Verizon as being the largest and therefore having the most profit potential than either SBC or Bellsouth. ... Verizon, SBC and Bellsouth all have similar dividend yields of 3%, 3% and 2% respectively. ... Verizon’s stock price is the highest, but it paid the highest dollar dividend, so its dividend yield is similar to SBC and Bellsouth.