Verizon Sales and Earnings Climb on Strong Mobile Growth
Wireless, Internet and TV service provider Verizon Communications (NYSE: VZ – $47.25) reported fourth quarter earnings of $0.66 a share, a penny above the Street estimate and a whopping 47% improvement on the year-earlier figure, on a 3.3% top-line advance. During the final quarter, Verizon Wireless added 1.6 retail postpaid net subscribers, bringing its total number of retail connections to 102.8 million, up 4.7% from a year ago. Verizon Wireline’s performance continued to improve during the December quarter, with consumer revenues up 6.4%, year over year, with most of the good news coming from the company’s FiOS service. Verizon added 126,000 new customers to its FiOS Internet service and 92,000 to its FiOS video offering. Separately, VZ completed a long-awaited deal to buy fellow buttonwoodproject income choice Intel Corp.’s Internet TV service for an estimated $200 million. The company is still on track to acquire the 45% of Verizon Wireless from Vodafone that it does not own. The shares of Verizon merit continued holding in a well diversified income portfolio for its long-term total return potential. The shares currently yield 4.44%.