Verizon Earnings: Here’s Why Investors Are Bidding Shares Up
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Verizon Communications Earnings Cheat Sheet
Results: Net income for the diversified communications systems rose to $1.59 billion (56 cents per share) vs. $1.37 billion (49 cents per share) in the same quarter a year earlier. This marks a rise of 21.2% from the year-earlier quarter.
Revenue: Rose 3.9% to $29.01 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: Verizon Communications reported adjusted net income of 64 cents per share. By that measure, the company fell short of mean estimate of 68 cents per share. Analysts were expecting revenue of $28.56 billion.
Quoting Management: “In the third quarter, Verizon continued to deliver double-digit earnings growth and strong cash generation, and we remain solidly on track to meet our financial objectives for the year,” said Lowell McAdam, Verizon chairman and CEO. “With our 4G LTE network advantage, well-received Share Everything Plans and unmatched product portfolio, Verizon Wireless continues to do an outstanding job of balancing growth and profitability. Wireless achieved record profitability in a quarter in which we reported the highest number of retail postpaid gross and net adds in four years.”
Revenue has risen the past four quarters. Revenue increased 3.7% to $28.55 billion in the second quarter. The figure rose 4.6% in the first quarter from the year earlier and climbed 7.7% in the fourth quarter of the last fiscal year 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 64 cents.
Looking Forward: Over the last 30 days, analysts have not been optimistic about the company’s next-quarter performance. The average estimate for the fourth quarter is now 59 cents per share, down from 62 cents. In the past seven days, the average estimate for the fiscal year has declined from $2.50 per share to $2.49.
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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)
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