Verizon Communications and Bank of New York Mellon released their latest earnings reports before opening bell this morning. Verizon posted adjusted earnings of $1.01 per share on $30.9 billion in revenues, against the consensus estimates of 99 cents per share and $31.08 billion. In last year’s third quarter, the mobile carrier reported adjusted earnings of $1.04 per share.
Bank of New York Mellon reported earnings of 90 cents per share on $3.94 billion in revenue, representing a 4% year over year increase. Analysts were expecting earnings of 81 cents per share on $3.86 billion in revenue. In last year’s third quarter, the firm posted earnings of 74 cents per share, while in the previous quarter, the firm reported 75 cents per share in earnings.
Verizon shares fall on earnings
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Verizon Communications’ reported earnings declined to 89 cents per share from 99 cents in the year-ago quarter. The adjusted earnings result excludes market-to-market pension re-measurement and severance pay amounting to 12 cents per share.
The company added 442,000 retail postpaid subscribers in the third quarter, bringing the total to 113.7 million retail connections. Verizon Wireless revenues declined 3.9% to $22.1 billion as subscribers switched to unsubsidized device payment plans. About 70% of phone activations during the quarter were on device payment plans. Verizon Wireline revenue declined 2.3% to $7.8 billion as consumer Fios revenue grew 4.2%. Fios revenue growth has come on the back of a growing customer base and strong loyalty.
For the full year, Verizon expects adjusted earnings to be about what they were last year.
Shares of Verizon Communications slumped by as much as 2.48% to $49.13 in premarket trades this morning.
Bank of New York Mellon shares rise on solid growth
Bank of New York Mellon said investment services fees grew 2% on the back of higher money market fees, higher Depository Receipts fees and an increase in securities lending revenue. Investment management and performance fees grew 4% as a result of increased market values and higher money market fees. Foreign exchange revenue declined 3% due to lower volumes and volatility.
Assets under custody or administration grew 7% to $30.5 trillion on the back of higher market values. Assets under management increased 6% to $1.72 trillion, while net long-term inflows amounted to $1 billion, combining $3 billion into actively managed strategies and $2 billion out of index strategies. Net short-term outflows were $1 billion.
Shares of Bank of New York Mellon edged higher by as much as 1.04% to $40.85 in premarket trades.