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Verizon (VZ) Slips as Q4 Results Mixed on Compressed Margins

January 24, 2012 8:02 AM EST Send to a Friend
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Verizon (NYSE: VZ) is trading in negative territory Tuesday morning, follow mixed fourth-quarter 2011 results as margins were crimped by better smartphone sales.

Revenue increased 7.7 percent from $26.395 billion last year to $28.436 billion in the most recent quarter.

Verizon actually swung to a fourth-quarter loss of $212 million -- of 71 cents per share -- from net income of $4.648 billion in the same period last year. However, excluding one-time pension items Verizon reported net income of 52 cents per share for the quarter.

Overall, the Street was expecting revs of $28.39 billion and earnings of 53 cents per share.

Wireless revenues saw a 13 percent increase to $18.3 billion, with retail postpaid ARPU moving 2.5 percent higher to $54.80. Total net adds were about 1 million, brining total Wireless subs to 108.7 million. Postpaid churn was 0.94 percent, and total churn was 1.23 percent. Notably, operating margins slipped from 30.1 percent last year to 23.7 percent in the recent quarter.

For Wireline, revenues fell 1.5 percent to $10.1 billion, while overall ARPU rose 8.5 percent to $96.43. Broadband connections increased 3.3 percent to 8.7 million.

Verizon is indicated about 2 percent lower early Tuesday.




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