Verizon Earnings Preview: Postpaid Subscriber Adds, Churn In Focus

For the first quarter, we expect the company to report robust postpaid gross adds driven by growth in tablet connections. Verizon's postpaid gross adds in Q1 2014 and Q4 2014 were 539,000 and 1.98 million, respectively. However, growing competition and the ongoing price war in the U.S. wireless market could continue to put pressure on Verizon's EBITDA (Earnings Before Interest, Tax, Depreciation and Amortization) margins. We also expect the company's churn rates to be almost flat y-o-y (1.07%) a...