ETFs Look Good Despite Verizon Communications Inc. (NYSE:VZ)’s Miss on Estimates for its Third Quarter

Even though Verizon Communications Inc. (NYSE:VZ) is the United States biggest wireless carrier but its 2014′s third quarter results were not so good. The company hit numbers that were lower than estimates for both its bottom and top-line figures. One of the biggest reasons for reporting lower than expected earnings was the company’s policy of offering two year long contracts on discounted rates.

Despite a few major disappointments Verizon Communications Inc. (NYSE:VZ) was able to achieve its milestone for revenue and earnings growth on a year-over-year basis. The main reason for this success was revenue generated through the company’s wireless services and improvement in FiOS services demand.

Here is a snapshot of Verizon Communications Inc. (NYSE:VZ) earnings in its third quarter.

According to estimates Verizon Communications Inc. (NYSE:VZ)’s EPS should have been 92 cents; however the company recorded an EPS of 89 cents only; even though it is an improvement by 14.1% on a year-over-year basis, but it missed the mark.

Year-over-year increase in revenue for the third quarter is by 4.3%, which is equal to $31,586 million; whereas the expected figure was $31,707 million.

In its third quarter Verizon Communications Inc. (NYSE:VZ) had an addition of 1.5 million wireless connections (net retail), which includes 106.2 M wireless connections that shows an increase by 4.9% on a year-over-year basis. Out of this figure 100.1 million are those connections that avail service contracts on a monthly basis. Verizon Communications Inc. (NYSE:VZ) internet subscribers for FiOS services for the quarter were recorded at 162,000; whereas its net subscribers for FiOS video were 114,000.

Despite missing a few marks, Verizon Communications Inc. (NYSE:VZ)’s Chief Financial Officer Fran Shammo is hopeful that Apple users’ switch to iPhone 6 will also help the wireless carrier’s fourth quarter growth rate.

Verizon Communications Inc. (NYSE:VZ) is not the only wireless carrier that came out with its third quarter results; AT&T Inc. (NYSE:T) will release its third quarter results after today’s market close. is set to report its third-quarter earnings today after the market closes.

This is the time for investors to closely follow telecom ETFs in case they report any increase in their values.

Here are a few telecom ETFs that investors should look out for;

Vanguard Telecommunication Services ETF (NYSEARCA:VOX) that is the most renowned telecom ETF has 30 stocks; Verizon Communications Inc. (NYSE:VZ) secures second position out of these 30 stocks because of its 22.5% assets. Even though Verizon Communications Inc. (NYSE:VZ) missed out on its earnings estimates VOX had a good trading session on Tuesday after it went up by 1.17%. VOX currently has a rating of Buy from some analysts and its risk outlook is being termed as Medium.

Fidelity MSCI Telecommunication Services Index ETF (NYSEARCA:FCOM) also holds 30 stocks with Verizon Communications Inc. (NYSE:VZ) in second place. FCOM has a 0.12% expense ratio and manages a $72.6 million asset base in AUM. During Tuesday’s trading FCOM went up by 1%.

iShares U.S. Telecommunications ETF (NYSEARCA:IYZ) has $585.6 million in AUM and holds 27 stock from the telecom sector. Verizon Communications Inc. (NYSE:VZ) is its top stock. IYZ this year has gone down by 1% and has been given a Hold rating by some analysts with a risk outlook of Medium.