Falling revenue did not prevent S&P 500 (NYSE:SPY) component Verizon Communications (NYSE:VZ) from reporting a profit boost in the first quarter. Verizon Communications, Inc. provides communications services through Domestic Wireless and Wireline segments.
Verizon Communications Earnings Cheat Sheet for the First Quarter
Results: Net income for Verizon Communications rose to $3.26 billion (51 cents/share) vs. $409 million (14 cents/share) YoY. A substantial increase from the year earlier quarter.
Revenue: Up 0.3% to $26.99 billion from $26.91 billion a year ago.
Actual vs. Wall St. Expectations: VZ (NYSE:VZ) beat the mean analyst estimate of 50 cents/share. Estimates ranged from 45 cents per share to 54 cents per share.
Quoting Management: “In the first quarter, Verizon Wireless solidified its industry leadership with results that once again showed sustainable, profitable growth,” said Verizon Chairman and CEO Ivan Seidenberg. “We are executing on our business plans and building momentum, and we are on track to meet both our revenue and earnings objectives for the year.”
Key Stats: Gross margins fell 26.7 percentage points to 33.5%. The contraction appeared to be driven by falling revenue, as the figure fell 37.3% from the year earlier while costs rose 4.8%.
Over the last five quarters, revenue has fallen an average of 8.4% year over year. The biggest drop came in the most recent quarter, when revenue fell 37.3% from the year earlier quarter.
Competitors to Watch: AT&T, Inc. (NYSE:T), Qwest Communications International Inc. (NYSE:Q), Deutsche Telekom (DTEGY), MetroPCS (NYSE:PCS), Terremark (NASDAQ:TMRK), Qwest (NYSE:Q), CenturyLink (NYSE:CTL), NTELOS Holdings (NASDAQ:NTLS), Vodafone (NASDAQ:VOD), Leap Wireless (NASDAQ:LEAP), Apple (NASDAQ:AAPL), Nokia (NYSE:NOK), Research in Motion (NASDAQ:RIMM) and Sprint Nextel Corp. (NYSE:S).
Today’s Performance: Shares of VZ (NYSE:VZ) are trading at $36.96 as of April 21, 2011 at 10:08 AM ET, down 2.25% from the previous close.