S&P 500 (NYSE:SPY) component Verizon Communications (NYSE:VZ) reported its results for the second quarter. Verizon Communications, Inc. provides communications services through Domestic Wireless and Wireline segments.
Verizon Communications Earnings Cheat Sheet for the Second Quarter
Results: Swung to a profit of $3.6 billion (57 cents per diluted share) in the quarter. The telecom services company had a net loss of $198 million or a loss of 42 cents per share in the year earlier quarter.
Revenue: Rose 2.7% to $27.5 billion from the year earlier quarter.
Actual vs. Wall St. Expectations: VZ beat the mean analyst estimate of 55 cents per share. Analysts were expecting revenue of $27.43 billion.
Quoting Management: “In terms of earnings growth and the acceleration of revenue growth, this has been one of Verizon’s best quarters since the 2008 economic downturn,” said Chairman and CEO Ivan Seidenberg. “We expanded sequential margins in both our wireline and wireless businesses, and in the second half of the year we expect Verizon to build on this strong, positive momentum to continue to drive profitable, sustainable growth.” Seidenberg added: “We expect Verizon Wireless to gain share in the retail postpaid market and widen its network-quality lead throughout 2011. We also continue to see strong customer demand for FiOS Internet and TV, and for cloud and other strategic services. At the same time, we remain focused on our cost structure, as we deliver improvements in wireline margins quarter after quarter.”
The company has now beaten estimates the last two quarters. In the first quarter, it topped expectations with net income of 51 cents versus a mean estimate of net income of 50 cents per share.
Margins rose in the first quarter after falling the quarter before. Gross margin rose 5.1 percentage points to 59.4% from the quarter earlier quarter. In the fourth quarter of the last fiscal year, the figure rose 1.8 percentage points to 58.4% from the year earlier quarter.
The company’s revenue has now risen for two straight quarters. In the first quarter, revenue increased 0.3% to $26.99 billion from the year earlier quarter.
Competitors to Watch: AT&T Inc. (NYSE:T), Sprint Nextel Corporation (NYSE:S), 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).
(Source: Xignite Financials)