A recent Verizon strike 2016 update has revealed that the company's continued conflict with the workers has had a negative impact on its stocks. Apparently, investors have given up on the firm as well.
CNN reported that the Verizon strike 2016 has caused the company's shares to be down by nearly 5 percent since it began last Apr. 13. This figure is worse than what its rivals AT&T and Comcast experienced.
The Communications Workers of America (CWA) has been excitedly proclaiming how Wall Street has dumped Verizon. It was noted that Wells Fargo has slashed its revenue estimates for the company for the second quarter and full year.
The Verizon strike 2016 is definitely having a negative impact on the carrier. Wall Street's estimate for the firm for the second quarter has also fallen 4 percent over the past two months.
Although it may not seem like much, the decline is definitely a big deal for the company. Its executives have even agreed that the Verizon strike 2016 has hurt its performance.
According to CRN, CEO Lowell McAdam has said that the carrier's second quarter financial results will be taking a hit due to the Verizon strike 2016. CFO Fran Shamm also noted that there would also be a "significant decline" in new customers for the FiOS services in the second quarter.
Reuters added that the second-quarter results for the company will be available by Jul. 26. Verizon reported its first-quarter earnings last April, when the strike first hit, and revealed that the protests are expected to hurt second-quarter earnings.
"We're doing a lot of installations but we're not doing the same volume that we had before," McAdam said. "So we won't be driving similar numbers in second quarter that we would in first from an installation perspective."
"I would be optimistic if I said we would be net positive for broadband and TV this quarter," Shammo added. Verizon strike 2016 participants and the carrier are still in negotiations.