Verizon Reports Fifth Consecutive Quarter of Double-Digit Operating Income and Earnings Growth
Verizon Profit Increases on Subscriber Additions -- Update
Verizon Communications Inc. said its profit more than doubled for the first three months of the year, as the telecommunications giant got a big boost from its recent Verizon Wireless acquisition and continued to increase its base of wireless and Internet customers.
The company in late February completed its deal to gain full ownership of Verizon Wireless, buying Vodafone Group PLC's 45% stake in the wireless carrier for $130 billion. The acquisition is expected to sharply increase Verizon's profits through 2014 and will grant Verizon more flexibility in driving Verizon Wireless's future. Verizon has said it is now looking to focus on smartphone penetration and connected devices, such as cars and tablets, to boost Verizon Wireless sales.
Verizon posted a profit of $3.95 billion, or $1.15 a share, up from $1.95 billion, or 68 cents a share, a year earlier. Adjusted earnings were 84 cents a share in the latest period. Verizon said adjusted earnings would have been 91 cents a share if it had full control of Verizon Wireless for the whole quarter.
Revenue improved 4.8% to $30.8 billion.
Wall Street analysts on average expected a profit of 87 cents a share and revenue of $30.7 billion, according to Thomson Reuters.
Verizon: A Silver Lining Lies Ahead For Dividend Investors
Summary
Verizon is well positioned to benefit from the internet streaming boom.
The company is making all the right moves to create value.
The company is focused on return of capital to shareholders with a robust dividend.
Verizon appearing fundamentally undervalued on a relative basis.