Verizon Communications (VZ) Tops Q2 EPS by 2c

Verizon Communications (NYSE: VZ) reported Q2 EPS of $0.94, $0.02 better than the analyst estimate of $0.92. Revenue for the quarter came in at $30.53 billion versus the consensus estimate of $30.95 billion.

"Verizon's second quarter shows that the company continues to deliver strong results while evolving operations and advancing a strategy to sustain network leadership, build new ecosystems and deliver the promise of the digital world to customers," said Chairman and CEO Lowell McAdam.

In first-half 2016, Verizon Wireless added a net of 1.3 million postpaid connections, while stabilizing wireless service revenue declines, maintaining strong customer retention, densifying networks in major markets and advancing 5G deployment. Verizon also completed the sale of local landline businesses in three states, and it negotiated new labor contracts that will generate approximately $500 million in cash savings over the term of the contracts.

During second-quarter 2016, Verizon converted its go90 application to the AOL platform, supporting the ability to expand and monetize mobile video offerings. In June the company also announced an agreement to acquire Telogis to expand its global telematics offerings.

Yesterday, Verizon announced it had entered into a definitive agreement to acquire Yahoo's operating business for approximately $4.8 billion, in a transaction expected to close in first-quarter 2017.

McAdam said, "By acquiring Yahoo, we are scaling up to be a major competitor in mobile media. Yahoo is a complementary business to AOL, giving us market-leading content brands and a valuable portfolio of online properties and mobile applications that attract over 1 billion monthly active consumer views. We expect this acquisition to put us in a great position as a top global mobile media company and give us a significant source of revenue growth for the future."

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

You May Also Be Interested In

• Midday movers: Tesla, Li Auto and CNH Industrial fall; Salesforce rises
• Tesla touts acceleration of new models, but Q1 results fall short of estimates
• Hibbett (HIBB) soars 18% on deal to sell to JD Sports for $1.08 billion