Verizon Announces Q2 Earnings: CapEx for 2019 To Date at $8B

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Verizon Communications Inc. (NYSE, Nasdaq: VZ) yesterday reported strong second-quarter 2019 results highlighted by an increase in net wireless customer additions, continued customer loyalty and industry-leading wireless products and services.

“Verizon finished strong in the first half of 2019 by delivering solid financial results while transforming the business under the new operating structure and advancing our leadership in 5G,” said Chairman and CEO Hans Vestberg. “Verizon made history this quarter by becoming the first carrier in the world to launch 5G mobility. We are focused on optimizing our next-generation networks and enhancing the customer experience while we head into the second half of the year with great momentum.”

First half 2019 capital expenditures totaled $8.0 billion. Verizon’s capital expenditures continue to support the launch and build-out of its 5G Ultra Wideband network, the growth in data and video traffic on the company’s 4G LTE network, the deployment of significant fiber in markets nationwide and the upgrade to Verizon’s Intelligent Edge Network architecture.

Craig Moffett of MoffettNathanson said the best bull case left is that the steady decline in prevailing interest rates has made Verizon’s dividend look unusually juicy. “Perhaps so,” he said, “but, in theory at least, what matters is where rates go from here. If the bulk of the decline in rates is behind us, then this, too, is old news.”

Moffett said today’s wireless results were, “well, fine, we guess… but we’re very likely enjoying “peak wireless” right now. Is -0.4 percent total revenue growth (yes, negative), just 1.8% EBITDA growth, negative FCF growth, and 2.5 percent YoY adjusted EPS growth – and that’s during an economic expansion, no less – enough to support a bull case if that’s the best we can hope for?” he said.

For second-quarter 2019, Verizon reported EPS of 95 cents, compared with $1.00 in second-quarter 2018. On an adjusted basis (non-GAAP), second-quarter 2019 EPS, excluding a special item, was $1.23, compared with adjusted EPS of $1.20 in second-quarter 2018. Verizon’s second-quarter 2019 EPS included 28 cents in early debt redemption costs.  Comments? Email Us.

August 2, 2019

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