Verizon’s CEO and analysts are confirming that the strike is having a significant impact on the company’s financials – on both wireline and wireless business.
At an investors conference in Boston today, where more than 800 strikers are protesting, CEO Lowell McAdam confirmed that the strike may hurt second quarter earnings as Verizon falls behind on installations without the support of its 40,000 trained technicians and customer service representatives.
This comes as financial analysts tell the Philadelphia Inquirer that the strike will cost Verizon at least $200 million in profits this year and that the company will lose 150,000 FiOS video and data customers due to the massive work stoppage.
And Friday, Wells Fargo analysts projected an impact on both the wireless and wireline sides of the business as the bank reduced Verizon’s second quarter revenue estimate by $343 million and 2016 wireline estimate by $826 million.
Overall, Verizon’s stocks are down by 5% since the beginning of the strike as its brand name takes a hit.
Meanwhile, yesterday Syracuse became the latest of 16 cities that have passed resolutions in support of striking Verizon workers.
Fortune reports that the municipal resolutions come at a time when Verizon’s stock values have dropped by 5% and Verizon’s CFO acknowledges that FiOS sales are significantly down as the strike continues.