One can typically glean a great deal of insight into the current state of the telecom industry by looking at recent events in the capital markets. By keeping an eye on these transactions, onlookers can catch a glimpse into the mindset of telecom shareholders and where they may sway these organizations in the future. With that in mind, here’s our weekly look back at some of the most notable capital market exchanges in the telecom industry.
China Telecom given investor support
Jostling through the major players of this industry and gaining a foothold in the telecom sector is no easy feat. Yet, China Telecom recently made waves as investors took note of its rising stock potential. The third-largest telecom service provider in China was recently upgraded from a “hold” status to “buy” by Societe Generale. The Mideast Times noted that other investment groups have voiced similarly positive outlooks for China Telecom, with the consensus price target recently reaching $60.60 per share.
LTE investments could pay off for China Telecom
China Telecom investors may be in line to enjoy further good news as the company recently took steps to enter the LTE network market in one of the world’s largest telecom sectors. The organization had previously received a TD-LTE license to provide “4G” services across mainland China, but China Telecom has made further inroads by establishing partnerships with several global wireless equipment manufacturers. According to Trefis, the company will be ready to begin offering LTE solutions to Chinese consumers by the end of the year. Although China Telecom stands atop the domestic 3G sector, it has yet to secure LTE services for its user base. Currently, China Mobile is the sole provider of LTE network solutions in the Asian nation.
AT&T, Verizon enjoy moderate gains
Given the competitive nature of the telecom market, any revenue generation should be greeted warmly. That’s why AT&T and Verizon investors are probably smiling following this week’s news regarding their stock value increases. AT&T stock recently closed at $32.95, showing a 1.54% positive performance over the week. Verizon Communications, meanwhile, saw its stock price rise .64% during the last session. The Street provided further good news for Verizon when it reaffirmed the company’s “buy” status.
Rogers Communications takes a hit
It hasn’t been all positive outlooks and rosy news for telecoms this week, however. Rogers Communications released lower than expected figures for the fourth quarter of 2013. The company’s adjusted diluted earnings per share during that period dropped 20% from the previous year. Overall, Rogers Communications reported a 1% drop in revenue in 2013, falling short of analyst expectations.
TW Telecom earnings hit the mark
Meanwhile, smaller organizations saw their revenue streams reach their expected increases. Colorado-based TW Telecom reported a revenue increase of 5.8% during the last quarter on a year-to-year basis. According to WKRB, the company’s earnings of 11 cents per share were on par with analyst predictions. Despite those encouraging figures, TW Telecom has still been designated with a “hold” rating by a number of firms.
Manx Telecom looks to settle debts on the stock market
Based out of the Isle of Man, Manx Telecom hopes to address some of its outstanding debt by entering London’s junior stock market, The Daily Telegraph reported. Company officials expect the move will translate into additional profits of £156.3 million, which they will use to repay Manx Telecom’s debt and hopefully place it in a desirable position to spur growth.
“We are delighted with the interest received from institutional investors during the marketing exercise which will provide a solid and supportive shareholder base for the future,” Manx Telecom Chief Executive Mike Dee told the news outlet.
