Verizon Communications Earnings Cheat Sheet: Sees Profit Move Up

S&P 500 (NYSE:SPY) component Verizon Communications (NYSE:VZ) reported its results for the third quarter. Verizon Communications provides communications services.

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Verizon Communications Earnings Cheat Sheet for the Third Quarter

Results: Net income for Verizon Communications rose to $3.54 billion (49 cents per share) vs. $881 million (31 cents per share) in the same quarter a year earlier. This is a more than fourfold rise from the year earlier quarter.

Revenue: Rose 5.4% to $27.91 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: VZ reported adjusted net income of 56 cents per share. By that measure, the company fell in line with the mean estimate of 56 cents per share. Analysts were expecting revenue of $27.91 billion.

Quoting Management: “Verizon emerges from the third quarter in a strong position to accelerate growth,” said Lowell McAdam, Verizon president and chief executive officer. “We faced significant challenges in recent months, yet delivered results that keep us on track to meet our 2011 earnings and revenue guidance, with great momentum expected entering 2012. We continue to grow revenues from strategic products and to increase free cash flow through improved operating performance and disciplined capital spending.”

Key Stats:

The company fell in line with estimates last quarter after topping expectations in the previous two quarters. In the second quarter, it topped the mark by 2 cents, and in the first quarter, it was ahead by one cent.

Revenue has now gone up for three straight quarters. In the second quarter, revenue rose 2.8% to $27.54 billion while the figure rose 0.3% in the first quarter from the year earlier.

Looking Forward: Over the past ninety days, the average estimate for the fourth quarter has fallen from 59 cents per share to 58 cents, indicating that analysts are growing pessisimistic about the company’s performance next quarter. Over the past sixty days, the average estimate for the fiscal year has reached $2.22 abs per share, a decline from $2.24.

Competitors to Watch: AT&T Inc. (NYSE:T), Sprint Nextel Corporation (NYSE:S), Deutsche Telekom AG (DTEGY), MetroPCS Communications, Inc. (NYSE:PCS), Vodafone Group Plc (NASDAQ:VOD), CenturyLink, Inc. (NYSE:CTL), NTELOS Holdings Corp. (NASDAQ:NTLS), Leap Wireless Intl., Inc. (NASDAQ:LEAP), Windstream Corporation (NASDAQ:WIN), and United States Cellular Corp. (NYSE:USM).

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(Source: Xignite Financials)

 

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