Verizon Communications Earnings: Profit Streak Snapped by a Loss

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

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Verizon Communications Earnings Cheat Sheet for the Fourth Quarter

Results: Reported a loss of $212 million (71 cents per diluted share) in the quarter. The telecom services company had net income of $4.65 billion or 93 cents per share in the year earlier quarter.

Revenue: Rose 7.7% to $28.44 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: VZ reported adjusted net income of 52 cents per share. By that measure, the company fell short of mean estimate of 53 cents per share. Analysts were expecting revenue of $28.39 billion.

Quoting Management: “Verizon finished 2011 very strong, both in terms of revenue growth and by delivering an 18.2 percent total return to our shareholders for the full year, and the company has great momentum for 2012,” said Lowell McAdam, Verizon chairman, president and chief executive officer. “Verizon Wireless produced particularly strong growth in the fourth quarter. While that diluted wireless margins in the short term, it is good news for revenue and margin growth over the long term, particularly given our leadership in the rapidly developing 4G LTE ecosystem.”

Key Stats:

Revenue has risen the past four quarters. Revenue increased 5.4% to $27.91 billion in the third quarter. The figure rose 2.8% in the second quarter from the year earlier and climbed 0.3% in the first quarter from the year-ago quarter.

The company fell short of estimates last quarter after being in line with expectations the quarter before with net income of 56 cents.

Looking Forward: The average estimate for the first quarter of the next fiscal year is steady at 60 cents a share. The average estimate for the fiscal year is $2.16 per share, down from $2.22 ninety days ago.

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).

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com