Shares of Verizon Communications (VZ) have climbed up by 1.5% reaching to $52.76 in late morning trading on Friday after reports suggested that the company’s bid for Yahoo!’s (YHOO) core Internet business may be one of the lowest.

Yahoo! received several offers of $5 billion or more, while Verizon reportedly offered more than $3.5 billion. Some bids, including Verizon’s, may exclude the technology company’s real estate and patent portfolio.

Additionally, Pacific Crest analysts lowered their estimates for Verizon Communications because of costs related to the recent union strike.

For 2016, analysts expect earnings of $3.91 per share on revenue of $127.75 billion, compared with their previous estimate of earnings of $3.98 per share on revenue of $127.8 billion.

Total operating revenues in first-quarter 2016 were $32.2 billion, a 0.6 percent increase compared with first-quarter 2015. Excluding AOL (non-GAAP), which was not part of Verizon a year ago, total operating revenues declined 1.5 percent. AOL had its highest first-quarter revenues in the last five years.

New revenue streams from IoT (Internet of Things) are growing, with revenues of approximately $195 million in first-quarter 2016, a year-over-year increase of about 25 percent.

Cash flows from operating activities totaled $7.4 billion in first-quarter 2016. This compares with $10.2 billion in last year’s first quarter, which included $2.4 billion related to a one-time transaction to monetize wireless tower assets. With capital expenditures totaling $3.4 billion in first-quarter 2016, free cash flow (non-GAAP, cash flow from operations less capital expenditures) totaled $4.0 billion. Verizon continues to anticipate consolidated capital expenditures of between $17.2 billion and $17.7 billion in 2016.

“Verizon’s strong first-quarter results demonstrate our capacity to compete effectively, while executing on our plan of continued network leadership and seeding new growth markets in mobile video and the Internet of Things,” said Chairman and CEO Lowell McAdam.

Since the beginning of the year, Verizon has moved to strengthen America’s best networks by announcing its intention to acquire XO Communications’ fiber-optic network business and an agreement to deploy a new fiber platform in Boston. Both will support a mix of new technologies, including 5G wireless services.

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Verizon also completed its sale of local landline businesses in California, Florida and Texas on April 1. The company used the proceeds to pay down debt in second-quarter 2016. In addition, Verizon recently announced plans to expand its video platform by adding unique content from Hearst and AwesomenessTV, and through a joint venture with Hearst to acquire Complex Media.

Verizon Communications is an American broadband and telecommunications company, the largest U.S. wireless communications service provider as of September 2014, and a corporate component of the Dow Jones Industrial Average. The company is based at 1095 Avenue of the Americas in Midtown Manhattan, New York City, but is incorporated in Delaware.

“While the market has been expecting this, we believe there could be additional room to the downside because execution throughout the remainder of 2016 has little room for error,” analysts said in a note released before today’s market open.

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Separately, Verizon Communications has a “buy” rating, the company’s revenue growth, solid stock price performance, and increase in net income, expanding profit margins and growth in earnings per share.