Verizon Communications (VZ) tops Q1 EPS by 3c, raises earnings guidance
Verizon Communications (NYSE: VZ) reported Q1 EPS of $1.20, $0.03 better than the analyst estimate of $1.17. Revenue for the quarter came in at $32.1 billion versus the consensus estimate of $32.15 billion.
Outlook and guidance
Based on the strength of the operational trends in the underlying business, Verizon is raising earnings guidance for full-year 2019:
- The company expects low single-digit percentage growth in adjusted EPS, excluding the impact of the new lease accounting standard. This is an increase from prior guidance for 2019 adjusted EPS to be similar to 2018, excluding the impact of the new lease accounting standard.
Verizon also expects the following:
- Low single-digit percentage growth in full-year consolidated revenues on a GAAP reported basis.
- The effective tax rate for full-year 2019 to be in the range of 24 percent to 26 percent.
- Cash taxes to be $2 billion to $3 billion higher than in 2018 due to benefits that were realized in 2018 that are not expected to repeat in 2019.
- Capital spending for 2019 to be in the range of $17 billion to $18 billion, including the expanded commercial launch of 5G.
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