Verizon beats by $0.03, misses on revs; reaffirms outlook (55.27)
- Reports Q2 (Jun) earnings of $1.23 per share, excluding non-recurring items, $0.03 better than the S&P Capital IQ Consensus of $1.20; revenues fell 0.4% year/year to $32.07 bln vs the $32.42 bln S&P Capital IQ Consensus. Wireless service revenue growth was offset by lower wireless equipment revenue and wireline service revenue. EBITDA (non-GAAP, earnings before interest, taxes, depreciation and amortization) totaled ~$10.8 billion, below ests. Cash flow from operations totaled $15.8 billion in second-quarter 2019, a decline of ~$600 million year over year. Operational improvements in Verizon's businesses were offset by higher cash taxes and cash payments related to the Voluntary Separation Program.
- Reaffirms outlook: Low single-digit percentage growth in adjusted 2019 EPS, excluding the impact of the lease accounting standard. Low single-digit percentage growth in full-year consolidated revenues on a GAAP reported basis. Cash taxes to be $2 billion to $3 billion higher than in 2018 due to benefits that were realized in 2018 that are not expected to repeat in 2019. Capital spending for 2019 to be in the range of $17 billion to $18 billion, including the expanded commercial launch of 5G