The communications company is optimistic about the future of its FiOS and other services. But a sagging stock indicates investors may not be so confidentIn bad economic times, the strong sometimes get stronger. On Jan. 28, Verizon Communications (VZ) joined a select crowd of technology companies reporting solid earnings and maintaining an optimistic forecast for 2008—providing more proof some dominant names may have enough firepower to buck the slowing economy.
On a conference call after the fourth-quarter report, Verizon's chief financial officer said the company has not been hit by growing economic weakness aside from a small impact in one or two Midwestern states. "We have not seen a change in sales expectations through January," said Doreen Toben. "I am not seeing anything in the urban areas. We expect 2008 to be a solid year."
President Denny Strigl echoed that optimism, which contrasted with the more cautious tone struck by AT&T (T) in its fourth-quarter update. "We remain very confident about 2008 despite all the noise we are hearing about the economy," he said. The company reaffirmed its commitment to delivering double-digit growth in wireless revenue and boosting profitability in its mature wireline business.
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