Verizon Reports Q1 Earnings: “Capex Better than Expected”

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Verizon Communications Inc. (NYSE, Nasdaq: VZ) Tuesday reported first-quarter 2018 results highlighted by consolidated revenue growth and strong Verizon Wireless customer loyalty.

“On balance, Verizon’s Q1 results were better than our expectations thereby providing the latest data points supporting our recent views,” according to Amir Rozwadowski, analyst with Barclays. “Capex of $4.55B came in well above our $3.42B estimate, but FY18 capex guidance was left unchanged at $17.0B-$17.8B, including the commercial launch of 5G,” Rozwadowski said.  

“We began 2018 with strong momentum, and we expect it to continue throughout the year,” said Chairman and CEO Lowell McAdam. “We are positioning Verizon for long-term growth while executing our strategy today and leading the way for the next cycle of growth for the industry.”

Q1 2018 highlights

  • $1.11 in earnings per share (EPS), compared with 84 cents in Q1 2017; adjusted EPS (non-GAAP), excluding special items, of $1.17, compared with 95 cents in Q1 2017.
  • Total consolidated revenue growth of 6.6 percent, or 3.2 percent on an adjusted basis (non-GAAP).

Wireless:

  • 260,000 retail postpaid net additions, including 220,000 postpaid smartphone net adds.
  • Strong customer loyalty with 0.80 percent retail postpaid phone churn, the fourth consecutive period of customer retention at 0.80 percent or better.
  • Total revenue growth of 4.7 percent, excluding the impact of the revenue recognition standard adopted on January 1, 2018.

Wireline:

  • 66,000 Fios Internet net adds.
  • Total Fios revenue growth of 1.9 percent, excluding the impact of the revenue recognition standard.

April 25, 2018

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