VimpelCom Ltd. (VIP – Snapshot Report) is one of the world’s largest integrated telecommunications services operators. It offers a wide range of wireless, fixed, and broadband services in Russia, Ukraine, Kazakhstan, Uzbekistan, Tajikistan, Armenia, Georgia, and various countries in Asia and Africa. They even do business in Italy and Canada.
VimpelCom provides services under the Beeline, Kyivstar, djuice, Wind, Infostrada Mobilink, Leo, Banglalink, Telecel, and Djezzy brands. VimpelCom Ltd. is headquartered in Amsterdam, the Netherlands.
But the stock has consistently been a Zacks #4 Rank Sell for the past year as analysts struggle to get a handle on the company’s earnings outlook. In the past 90 days, EPS estimates for this year have slid from $0.71 to $0.54, a 24% decline.
And next year’s profit projections also took a big hit in the past 90 days, dropping from $1.01 to $0.66, or 35%. It’s no wonder that shares have plummeted over 40% since September.
The stock seems inexpensive trading at under 10X forward estimates, with 1900% EPS growth expected this year. But it’s probably best to stay on the sidelines until the analysts start moving estimates up, instead of down. The Zacks Rank will let you know when the coast is clear.
Kevin Cook is a Senior Stock Strategist for Zacks where he runs the Follow The Money Trader.