Verizon misses by $0.02, reports revs in-line
Reports Q3 (Sep) earnings of $0.89 per share, $0.02 worse than the Capital IQ Consensus Estimate of $0.91; revenues rose 4.3% year/year to $31.59 bln vs the $31.59 bln consensus.
- Wireless Highlights: Added 1.53 million net retail connections; retail postpaid churn of 1.00%; 106.2 mln total retail connections; 100.1 mln total retail postpaid connections. Saw a 4.8% YoY increase in service revenues and a 4.6% YoY increase in retail service revenues; 31.9% operating margin; 49.5% segment EBITDA margin.
- Wireline Highlights: Saw a 4.5% YoY increase in consumer revenues, the ninth consecutive quarter of more than 4% growth; consumer ARPU (average revenue per user) up 10.3%. Saw a 13.4% increase in FiOS revenues; 162,000 FiOS Internet and 114,000 FiOS Video net additions.
- "We have great confidence heading into the fourth quarter, as Verizon continues to deliver consistently strong operating and financial results. We see continued, healthy customer demand for wireless and broadband services, and we are encouraged by the growth we are starting to see in the areas of video delivery and machine-to-machine. Our cash generation remains strong, and last month we were pleased to announce board approval of a quarterly dividend increase for the eighth consecutive year."