Verizon Communications Inc. Posts Higher Profits, but Misses EPS Estimates (VZ)

Before Tuesday’s opening bell, Verizon Communications Inc. (VZ) reported increased third quarter results, which was primarily due to an increase in subscribers in its wireless business. Despite the upside in earnings, the company was unable to meet analysts’ expectations for EPS.

VZ’s Earnings in Brief

Verizon reported third quarter earnings of $3.70 billion, or 89 cents per share, up from $2.23 billion, or 78 cents per share a year ago. Revenue rose 4.3% to $31.59 billion, from $30.28 billion last year. On average, analysts expected to see earnings of 90 cents per share and $31.58 billion in revenue. During the quarter, the company added 1.5 million new subscribers to its wireless service, beating analysts’ estimate of 1 million new subscribers.

CEO Commentary

Chairman and CEO Lowell McAdam commented: “We have great confidence heading into the fourth quarter, as Verizon continues to deliver consistently strong operating and financial results. We see continued, healthy customer demand for wireless and broadband services, and we are encouraged by the growth we are starting to see in the areas of video delivery and machine-to-machine. Our cash generation remains strong.”

VZ’s Dividend

Verizon will pay its next 55 cent dividend on November 3. The stock went ex-dividend on October 8.

VZ Dividend Snapshot

As of market close on October 20, 2014

Click here to see the complete history of VZ dividends.

Verizon shares were down 48 cents, or 0.99% during premarket trading Tuesday. The stock is down 1.38% YTD.