Verizon Communications Inc (NYSE:VZ) released its latest earnings report before opening bell this morning, posting both GAAP and non-GAAP earnings of 89 cents per share on $31.6 billion in revenue. Analysts had been expecting earnings of 90 cents per share on $31.6 billion in revenue. In the same quarter a year ago, Verizon reported earnings of 77 cents per share revenue of $30.28 billion.
The company said no special items impacted the September quarter’s earnings results this year.
Corsair Capital was down by about 3.5% net for the third quarter, bringing its year-to-date return to 13.3% net. Corsair Select lost 9.1% net, bringing its year-to-date performance to 15.3% net. The HFRI – EHI was down 0.5% for the third quarter but is up 11.5% year to date, while the S&P 500 returned 0.6% Read More
Verizon sees strong customer additions
The wireless and internet service provider reported year over year percentage growth in the double digits for both reported and adjusted earnings per share for the 10th time in the last 11 quarters.
Verizon added 1.5 million wireless net retail connections and noted a 1% postpaid churn rate. At the end of the quarter, the company had 106.2 million retail connections and 100.1 million total retail postpaid connections. Verizon reported a 4.8% growth rate in service revenues and a 4.6% year over year growth rate in retail service revenues. The Wireless segment operating income was 31.9%, while the EBITDA margin for the segment was 49.5%.
In wireline, the company reported a 4.5% increase in consumer revenue and a 13.4% growth rate in FiOS revenues. Verizon reported 162,000 FiOS internet and 114,000 FiOS Video net additions during the quarter.
Verizon’s revenue by segment
For the wireless segment, Verizon saw $21.8 billion in revenue, a 7% increase over last year. Service revenues for the segment were $18.4 billion, while retail service revenues were $17.6 billion. Retail postpaid average revenue per user rose 3.5% to $161.24 per month.
In wireline, the company said total revenue fell .8% to $9.6 billion. Total FiOS revenues rose to $3.2 billion, while sales to enterprise customers rose 1% to $2.1 billion.
Verizon provides guidance
“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,” said Verizon Chairman and CEO Lowell McAdam in a statement. “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.”
The company still projects 4% consolidated top-line growth this year.