Verizon misses by $0.02, reports revs in-line; reaffirms FY14 revs guidance
Reports Q1 (Mar) earnings of $0.84 per share, excluding non-recurring items, $0.02 worse than the Capital IQ Consensus Estimate of $0.86; revenues rose 4.8% year/year to $30.82 bln vs the $30.68 bln consensus.
- Co reaffirms guidance for FY14, sees FY14 revs of +4% to ~$125.4 bln vs. $125.16 bln Capital IQ Consensus Estimate; sees continued high segment EBITDA margin on service revenues
- Wireless:
- Total revenues were $20.9 billion in first-quarter 2014, up 6.9 percent year over year. Service revenues in the quarter totaled $18.0 billion, up 7.5 percent year over year. Retail service revenues grew 6.7 percent year over year, to $17.2 billion.
- Retail postpaid ARPA (average revenue per account) increased 6.3 percent over first-quarter 2013, to $159.67 per month. In first-quarter 2014, wireless operating income margin was 35.0 percent and segment EBITDA margin on service revenues was 52.1 percent. This compares with 32.9 percent and 50.4 percent, respectively, in first-quarter 2013.
- Verizon Wireless added 549,000 retail net connections, including 539,000 retail postpaid net connections, in the first quarter. These additions exclude acquisitions and adjustments. At the end of the first quarter, the company had 103.3 million retail connections, including 97.3 million retail postpaid connections, a 4.4 percent increase year over year.
- Wireline:
- In first-quarter 2014, consumer revenues were $3.8 billion, an increase of 6.2 percent compared with first-quarter 2013.
- Consumer ARPU for wireline services increased to $120.17 in first-quarter 2014, up 11.3 percent compared with first-quarter 2013. Outlook: Verizon continues to target consolidated top-line growth of 4 percent and adjusted consolidated EBITDA margin expansion in 2014, with positive contributions to profitable growth from both wireless and wireline.