THE BUSINESSWEEK 50 RANKINGS + 25

7

Verizon Communications

Verizon had a banner year in 2006. The telecom provider signed up more wireless customers than any other operator, its business unit began to grow for the first time in years, and it launched its risky yet bold TV service. The moves are part of CEO Ivan Seidenberg’s plan to transform Verizon into a diversified giant offering voice, Internet tie-ups, and wireless and TV services. It all seems to be jelling: Shares are up 24%, their largest gain since 1999. Now Verizon must sign up more users in new markets such as video, broadband, and wireless data in the face of stiff cable competition. But don’t look for Seidenberg to put that expansion on hold.

Overall Grade

A

Market Data

VZ

Market Value
(2/28/2007)

$108.9 Billion

Profitability*

13.5%

A

Sales Growth Rate**

8.1%

B-

12-Month Sales

$88.1 Billion

12-Month Net Income

$5.5 Billion

Total Return Past 12 Months

20.5%

Past 36 Months

15.9%

Economic SectorTelecommunication Services
IndustryIntegrated Telecommunication Services
The overall sector letter grade reflects how the weighted average of the return on income, or return on equity, and sales growth grades compare with others in the same sector. For the overall grade as well as the ROE/ROI and sales growth grades, an "A" places a company in the top 7% of its sector and an "A-" in the top 14% of the sector. The actual ranking was done using the underlying numerical measures. Grades are for information only.
* For nonfinancial companies, three-year average pretax operating profit before interest and special items as a percentage of average invested capital. For financial companies, pretax profits as a percentage of average shareholder's equity.
*Three-year average annual sales growth based on the most recently reported 36 months, calculated using the least-squares method.

Ivan Seidenberg

Ivan Seidenberg, 60

CEO since 2002


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Data as of 2/28/07 provided by Standard & Poor's Compustat