Verizon Communications Will See an Increase in Q4 Earnings for This Reason

Verizon Communications announced on Wednesday that the new tax overhaul bill recently signed into law by the president will allow the company a one-time reduction in net deferred income tax liabilities.

The amount is around $16.8 billion and will increase Verizon’s fourth quarter earnings and for the year ending December 31st, 2017. The company has forecast EPS for the year ended to be about $4.10 due to the impact of the law.

According to Verizon’s filing however, the one-time reduction will not have any impact on the 2017 statement.
The new tax law will cut the corporate tax rate from 35% down to 21%.

Disclaimer: We have no position in Verizon Communications Inc. (NYSE: VZ) and have not been compensated for this article.