Conservative · Income · Stocks to Consider and Updates

Verizon Tops First Quarter Earnings Estimates

VZ    Telecom giant Verizon Communications, Inc. (NYSE: VZ – $49.17), reported March-quarter earnings of $1.02 a share, above Street estimates of $0.95 and a hefty 21% improvement over the year-earlier result, on a 3.8% top-line advance, slightly below consensus. As is typically the case, Verizon Wireless was responsible for a lion’s share of the impressive earnings growth. And a bit of margin improvement didn’t hurt either. During the March quarter, VZ Wireless added 565,000 retail postpaid net subscribers, bringing Verizon’s total number of retail connections to 108.6 million, up 5.1% from a year earlier. Total Wireless revenue came in at $22.3 billion, up 6.9% year over year, with much of the good news attributable to a $1.5 billion increase in equipment revenues, the result of more customers choosing Verizon Edge pricing. Separately, Verizon’s Wireline division certainly seems to have turned around, with year-over-year quarterly revenues, driven by FiOS fiber-optic broadband services, having now grown by at least 4% for the 11th consecutive quarter. The shares, yielding 4.5%, are an attractive holding for both conservative and income accounts.



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