Verizon Q3 earnings, revenue beat Wall Street estimates

20 Oct

NEW YORK, Oct (KOSDAQ: 039200.KQ – news) 17 (Reuters) – Verizon Communications Inc
on Thursday posted stronger- than-expected third-quarter
earnings and revenue on strong wireless growth, sending its
shares up 2.4 percent in early trade.

While the company’s wireless customer growth numbers were
slightly below Wall Street estimates, its Verizon Wireless
venture with Vodafone Group Plc posted good profit and
revenue growth as customers spent more on their services.

“The numbers were fine but it wasn’t a blowout quarter. It
was a good third quarter,” said Hudson Square analyst Todd
Rethemeier.

Verizon Wireless added 927,000 net retail subscribers in the
quarter, compared with Wall Street expectations of about 1
million customers, according to eight analysts, with estimates
ranging from 900,000 to 1.2 million. Verizon (NYSE: VZ – news) has agreed to buy
out Vodafone (LSE: VOD.L – news) ‘s 45 percent share of the mobile venture.

Verizon said it expects wireless customer growth to improve
sequentially in the fourth quarter.

Verizon reported a third-quarter profit of $2.2 billion, or
78 cents per share, compared with $1.59 billion, or 56 cents per
share, a year ago.

Excluding unusual items, Verizon earned 77 cents per share
in the quarter, compared with Wall Street expectations of 74
cents, according to Thomson Reuters I/B/E/S.

Its wireless profit margin was 51.1 percent, based on
earnings before interest, taxes, depreciation and
amortization(EBITDA) as a percentage of service revenue, and
above its target range of 49 percent to 50 percent for the full
year.

Rethemeier said the profit margin would likely come down in
the fourth quarter due to steep holiday season costs, since the
company kept its wireless margin target for the year despite the
strong third-quarter number.

Revenue rose 4.4 to $30.28 billion from $29.01 billion. Wall
Street expected $30.16 billion, according to Thomson Reuters
I/B/E/S.

A 7.2 percent increase in wireless revenue for the quarter
was offset by a slower 4.3 percent rise in wireline revenue.

Verizon shares rose 2.4 percent to $48.40 in premarket
trading after closing at $47.25 in the regular New York Stock
Exchange session.

Source: http://news.yahoo.com/verizon-q3-earnings-revenue-beat-120223469.html
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