We maintain our Outperform recommendation for Vodafone (VOD), the largest revenue generating international wireless carrier. Revenue growth in the last quarter was fuelled by foreign exchange gains and acquisitions.

Additionally, increase in subscriber base was driven by continued healthy net additions in its Indian operation. Vodafone’s globally diversified operation provides hedging elements which offset price competition and translation risk that may arise in specific markets. The company continues to accelerate 3G wireless service deployments and expanding network availability across Asia, Eastern Europe and Africa.

Moreover, Vodafone is focused on improving shareholder returns through attractive dividend payouts. Management’s outlook for fiscal 2010 remains favorable as operating results are expected to improve with continued growth across incipient markets coupled with ongoing cost saving initiatives and currency exchange translation gains.Zacks Investment Research