Deutsche Bank Says Most Verizon (VZ) Key Metrics Were Better in Q2

July 19, 2012 8:45 AM EDT Send to a Friend
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Deutsche Bank offered some quick comments on Verizon Communications (NYSE: VZ) Q2 results.

The firm notes that while EPS of $0.64 was only a slight beat, the majority of key operating metrics were better than expected.

"This includes beats to wireless EBITDA margin (49%, a record), post paid ARPU (up 3.7% YoY) and post paid net adds (888k vs. consensus 700k). Overall EBITDA was a beat vs. consensus, so the in-line EPS result appears to be the result of small misses on several below the line items (taxes, other income, interest expense; not D&A). There were only 2 items that we view as notable misses. The first was FiOS net adds: 134k Internet (175k est), 120 TV (170k est). But, Consumer ARPU exceeded $100 for the first time ever and Consumer revenue grew 2.5% (1.7% est)."

Also notable for Verizon suppliers, the company now sees 2012 capex as "flat to down"
versus "flat" prior and the softness appears to be in wireless.

The firm maintained their Hold rating and price target of $39.00.

For an analyst ratings summary and ratings history on Verizon Communications click here. For more ratings news on Verizon Communications click here.

Shares of Verizon Communications closed at $45.89 yesterday.


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