Verizon Communications Inc. (NYSE:VZ) 3Q17 earnings were released before opening bell this morning. The mobile carrier and internet service provider reported adjusted earnings of 98 cents per share on $31.72 billion in revenue, compared to the consensus estimates of 98 cents per share and $31.45 billion in revenue. In last year’s third quarter, the company posted adjusted earnings of $1.01 per share on $30.94 billion in revenue.
On a GAAP basis, Verizon 3Q17 earnings were flat year over year at 89 cents per share. Wireless revenue fell 2.4% to $21.6 billion, a bit better than the consensus at $21.5 billion. Wireline revenue rose 1.1% to $7.7 billion, which was in line with consensus. Fios revenues grew 4.8%, while Oath revenues amounted to $2 billion. One of the items that was excluded from the non-GAAP earnings result was a negative impact of 1 cent per share from the hurricanes in Florida and Texas.
“I share the pride of all Verizon employees that our network aided and served first-responders and customers when they needed it most following the recent natural disasters,” Chairman and Chief Executive Officer Lowell McAdam said in a statement with the Verizon 3Q17 earnings release. “While steadily investing to advance our network leadership and to build the Verizon Intelligent Edge Network, we have also maintained the financial flexibility to increase shareholder dividends for an 11th consecutive year.”
The company added 603,000 retail postpaid connections, of which 486,000 were smartphones. Analysts had been expecting only 438,000 retail postpaid connections, according to StreetAccount. The retail postpaid churn rate was 0.7%, while the retail postpaid phone churn was at 0.75%. It was the tenth quarter in a row in which Verizon returned a retail postpaid phone churn rate of less than 0.9%. Verizon added 30,000 postpaid accounts, while it lost 107,000 postpaid accounts in last year’s third quarter.
Verizon affirmed its full-year revenue guidance as being “fairly consistent” with last year’s revenue result. The company said it expects an improvement in wireless service and equipment revenues, and it looks for full-year adjusted earnings trends to be similar to revenue trends.
Following the Verizon 3Q17 earnings release, the company’s stock rose by about 2%, rising as high as $49.62 in premarket trades.