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Verizon (VZ) Beats Q3 Earnings, Lags Revenues Estimate

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Verizon Communications Inc. (VZ - Free Report) is the largest telecom operator in the U.S. providing high-end wireless and wireline services to individuals, business enterprises and government agencies.

The U.S. telecom industry is facing severe competitive pressure at present. Aggressive pricing competition and higher promotional activities are likely to hurt the company’s financial results. Verizon has predicted flat year-over-year earnings for 2016 as it does not see enough variables to deliver growth in the coming year. However, the company expects to return to growth trajectory starting 2017.

Verizon is presently focusing on online content delivery, mobile video and online advertising for growth. In this regard, the acquisition of AOL and Millennium Media and the launch of its new mobile video service named “Go90” should generate significant revenues for the company in the quarter.  Moreover, with the intention to integrate its AOL and Millennium Media assets, Verizon agreed a deal to purchase Yahoo! Inc.‘s core assets for $4.8 billion.

Verizon currently carries a Zacks Rank #3 (Hold). We have highlighted some of the key stats from this just-revealed announcement below:

Earnings: The Company beats first quarter earnings. Our consensus called for EPS of 99 cents while the company reported EPS of $1.01.

Revenue:Verizon reported total revenue of $30,937 million missing the Zacks Consensus Estimate of $31,141 million.

Key States to Note: In the reported quarter, Verizon added net 0.442 million retail postpaid connections. Retail postpaid churn increased to 1.04% from 0.93% in the prior-year quarter. At the end of third quarter, Verizon had 113.676 million retail connections, up 2.6% year over year.

VERIZON COMM Price and Consensus

VERIZON COMM Price and Consensus | VERIZON COMM Quote

Check back later for our full write up on this Verizon earnings report later!

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