Verizon Communications (NYSE: VZ) yesterday posted third-quarter results boasting highlights that include “continued growth, strong cash flow and network innovations that led to the world’s first 5G commercial product offering.”
“Verizon has posted a third quarter of strong operational and financial performance,” said CEO Hans Vestberg. “With the beginning of the 5G era in this fourth quarter, we expect that trend to continue. We are investing in networks, creating platforms to add value for customers and maintaining a focused, disciplined strategy. Verizon is best positioned to take full advantage of the opportunities offered by the new game-changing generation of technology.”
For third-quarter 2018, Verizon reported EPS of $1.19, compared with 89 cents in third-quarter 2017. The company’s reported earnings included a net impact of three cents per share from special items. Charges for early debt redemption and integration-related expenses (primarily pertaining to Oath) were partially offset by a pension and benefit re-measurement credit.
Craig Moffett of MoffettNathanson, said with two of the Big Four “all but taking a knee,” Verizon (and T-Mobile) now have the freedom to grow without discounting. “It’s hard to imagine a better setup,” Moffett said. “Today’s wireless results are a taste; Verizon over-delivered on subscriber growth AND profitability in Q3. There’s no reason to think they won’t again in Q4. It’s good to be Verizon right now…at least in Wireless… in Wireline, well, not so much,” he said.
“Results were strong with signs that competition remains benign,” said Jonathan Chaplain of New Street Research. “The Company cut capex guidance, which will be cheered in the near-term, though it suggests that Verizon may be behind where it expected to be with its One Fiber / 5G investment. We knew this was going to be a strong quarter for Verizon, with Cable still on the sidelines.” Comments? Email us.
October 24, 2018
