(Updated - January 22, 2015 7:05 AM EST)

Verizon Communications (NYSE: VZ) reported Q4 EPS of $0.71, $0.01 worse than the analyst estimate of $0.72. Revenue for the quarter came in at $33.19 billion versus the consensus estimate of $32.67 billion.

Chairman and CEO Lowell McAdam said: "Verizon posted another year of consistently high operating and financial performance in 2014, with strong cash generation and the return of $7.8 billion to our shareowners. I am confident that Verizon's assets and market momentum position us to continue to drive profitable growth in 2015."

Wireless Financial Highlights

• Total revenues were $23.4 billion in fourth-quarter 2014, up 11.0 percent year over year. Service revenues in the quarter totaled $18.2 billion, up 2.8 percent year over year. Retail service revenues grew 2.6 percent year over year, to $17.4 billion.
• Verizon Wireless full-year total revenues were $87.6 billion, an increase of 8.2 percent compared with full-year 2013 revenues of $81.0 billion.
• Verizon Edge installment billings totaled $443 million in fourth-quarter 2014 and $976 million for the full year. Service revenues plus Edge installment billings grew 5.2 percent in fourth-quarter 2014 and 6.6 percent for the full year compared with 2013.
• Retail postpaid ARPA (average revenue per account) increased 1.0 percent over fourth-quarter 2013 to $158.82 per month, and 3.9 percent over the full year. Adding Edge installment billings, these growth rates increase to 3.5 percent for the quarter and 5.3 percent for the full year.
• In fourth-quarter 2014, wireless operating income margin was 23.5 percent and segment EBITDA margin on service revenues (non-GAAP, based on earnings before interest, taxes, depreciation and amortization) was 42.0 percent. This compares with 29.5 percent and 47.0 percent, respectively, in fourth-quarter 2013.
• For full-year 2014, wireless operating income margin was 30.5 percent and segment EBITDA margin on service revenues was 48.5 percent, compared with 32.1 percent and 49.5 percent, respectively, in 2013.

Wireless Operational Highlights

• Verizon Wireless added 2.1 million retail net connections, including 2.0 million retail postpaid connections, in the fourth quarter. These additions exclude acquisitions and adjustments.
• At the end of the year, the company had 108.2 million retail connections. This includes 102.1 million retail postpaid connections, a 5.5 percent increase year over year.
• Verizon Wireless had 35.6 million retail postpaid accounts at the end of the fourth quarter, up 1.5 percent compared with fourth-quarter 2013, and 2.87 connections per account, up 4.0 percent year over year.
• During fourth-quarter 2014, retail postpaid device activations were up nearly 34 percent over the same period in 2013. About three-quarters of phone activations in the quarter were customer upgrades. Approximately 9.8 percent of the retail postpaid base upgraded devices, and 93 percent of these upgrades were 4G smartphones.
• The company added a net of 672,000 postpaid phones, as 4G smartphone additions of 1.5 million were offset by net declines in basic and 3G smartphones. In terms of Internet devices, the company added 1.4 million new 4G LTE tablets.
• At the end of 2014, smartphones accounted for 78.6 percent of the Verizon Wireless retail postpaid customer phone base, up from 70.0 percent at the end of 2013.
• Retail postpaid churn was 1.14 percent in the fourth quarter, an increase of 14 basis points sequentially and 18 basis points year over year. Retail churn was 1.39 percent in the fourth quarter, up 10 basis points sequentially and 12 basis points year over year.
• In the fourth quarter, Verizon Wireless added new devices to its lineup, including: DROID Turbo by Motorola; Sony Xperia Z3v; iPad Air 2 with Wi-Fi + Cellular and iPad mini 3 with Wi-Fi + Cellular; the LG G Pad 7.0 LTE and 10.1 LTE; the Ellipsis Jetpack; and the connected wearable devices GizmoPal by LG and Samsung Gear S.

Wireline

• 4.1 percent year-over-year quarterly increase in consumer revenues, the 10th consecutive quarter of more than 4 percent growth.
• 11.6 percent year-over-year quarterly increase in FiOS revenues; 145,000 FiOS Internet and 116,000 FiOS Video net additions; 59,000 increase in net broadband connections.

2015 Outlook

For 2015, Verizon expects:

• Consolidated revenue growth of at least 4 percent.
• Sustained profitability with a consolidated adjusted EBITDA margin at a level consistent with full-year 2014 performance.
• Strong free cash flow generation with consolidated capital spending of between $17.5 billion and $18.0 billion.
• A minimum pension-funding requirement of approximately $700 million.
• An increase in total cash income taxes, with an expected effective tax rate for book purposes in the range of 34 to 36 percent.

For earnings history and earnings-related data on Verizon Communications (VZ) click here.