Verizon Communications Earnings: Rise in Profit
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Verizon Communications Earnings Cheat Sheet for the First Quarter
Results: Net income for Verizon Communications rose to $3.91 billion (59 cents per share) vs. $3.26 billion (51 cents per share) in the same quarter a year earlier. This marks a rise of 19.7% from the year-earlier quarter.
Revenue: Rose 4.6% to $28.24 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: Verizon Communications beat the mean analyst estimate of 58 cents per share. Analysts were expecting revenue of $28.17 billion.
Quoting Management: “Verizon delivered double-digit earnings growth and strong cash flow this quarter,” said Lowell McAdam, Verizon chairman and CEO. “We built momentum coming out of 2011, and our results show that we continue to execute in the key growth areas of our business. Verizon Wireless produced both great growth and great margins, and we produced another strong quarter of FiOS growth. We are confident we will improve Wireline margins for the full year. Our repositioning of Verizon Enterprise Solutions has better aligned our strengths in high-growth markets, and we expect our enterprise business to contribute even more to overall Wireline revenue growth and profitability over time.”
Revenue has risen for the last four quarters. Revenue increased 7.7% to $28.44 billion in the fourth quarter of the last fiscal year. The figure rose 5.4% in the third quarter of the last fiscal year from the year earlier and climbed 2.8% in the second quarter of the last fiscal year from the year-ago quarter.
The company topped expectations last quarter after falling short of forecasts in the fourth quarter of the last fiscal year with net income of 52 cents versus a mean estimate of net income of 53 cents per share.
Looking Forward: Over the last 30 days, analysts have not been optimistic about the company’s next-quarter performance. The average estimate for the second quarter is now 63 cents per share, down from 64 cents. For the fiscal year, the average estimate has moved down from $2.53 a share to $2.47 over the last ninety days.
(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)
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