Verizon Communications (VZ) Tops Q3 EPS by 1c, Offers Guidance
Verizon Communications (NYSE: VZ) reported Q3 EPS of $1.25, $0.01 better than the analyst estimate of $1.24. Revenue for the quarter came in at $32.9 billion versus the consensus estimate of $32.75 billion.
- Total revenue growth of 2.6 percent year over year to $23.6 billion, driven by a 2.7 percent increase in service revenue.
- 601,000 retail postpaid net additions, including 444,000 phone net additions, an increase from 295,000 phone net additions in third-quarter 2018, and 615,000 postpaid smartphone net additions, an increase from 510,000 postpaid smartphone net additions in third-quarter 2018. This growth was driven by a 10 percent year over year increase in phone gross additions.
- Total retail postpaid churn of 1.09 percent, and retail postpaid phone churn of 0.82 percent.
Outlook and guidance:
As outlined in Verizon's second-quarter 2019 earnings release, the company expects the following:
- Low single-digit percentage growth in adjusted 2019 EPS, excluding the impact of the lease accounting standard.
- Low single-digit percentage growth in full-year consolidated revenues on a GAAP reported basis.
- 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.
- Adjusted effective income tax rate (non-GAAP) for full-year 2019 to be at the lower end of its previously disclosed range of 24 percent to 26 percent.
For earnings history and earnings-related data on Verizon Communications (VZ) click here.