Operating expenses are down 1.6% year-over-year, with SG&A expenses down 3.9%. This reverses a sharp rise noted in the second quarter’s operating expenses, which rose 2.2% year-over-year in the period.
Verizon has arranged financing for its $130 billion buyout of the 45% stake in Verizon Wireless owned by Vodafone PLC (NASDAQ: VOD). The company will offer $49 billion in new debt and has an agreement to receive $12 billion in term loans to help finance the deal.
The company’s CEO said:
These strong third-quarter results reflect Verizon’s long-term investment in reliable, high-quality networks to deliver value to customers. Our unwavering focus on wireless, FiOS and strategic enterprise services has produced consistent performance, and we’ve delivered double-digit earnings growth in six of the past seven quarters. Verizon’s strategic networks form a powerful distribution platform for future growth and innovation.
Verizon Wireless generated $20.4 billion in second-quarter revenues, up 7.2% year-over-year. Postpaid average revenue per account (ARPA) rose 7.1% to $1,555.74. Wireless operating margin came in at 33.9%, up from 31.8% a year ago.
The number of retail postpaid customers grew by 1.1 million in the quarter, bringing Verizon’s total number of retail connections to 101.2 million, up 5.5% compared with the third quarter of 2012.
In the wireline business, revenues increased 4.3% to $3.7 billion in the third quarter, with most of the growth coming from the company’s FiOS service. Verizon added 173,000 new customers to its FiOS Internet service and 135,000 to its FiOS video service. FiOS Internet service is up 27.2% compared with the third quarter of 2012, and FiOS video service is 13.4% higher.
Verizon did not offer any revenue or earnings guidance, but the consensus estimates for the fourth quarter call for EPS of $0.59 on revenues of $30.94 billion. For the full year, estimated EPS totals $2.75 on revenues of $120.31 billion.
Shares were up about 3% at $48.66 in premarket trading Thursday morning, in a 52-week range of $40.51 to $54.31. Prior to this report, Thomson/Reuters had a consensus price target of around $53.60 on the company’s shares.
Travel Cards Are Getting Too Good To Ignore (sponsored)
Credit card companies are pulling out all the stops, with the issuers are offering insane travel rewards and perks.
We’re talking huge sign-up bonuses, points on every purchase, and benefits like lounge access, travel credits, and free hotel nights. For travelers, these rewards can add up to thousands of dollars in flights, upgrades, and luxury experiences every year.
It’s like getting paid to travel — and it’s available to qualified borrowers who know where to look.
We’ve rounded up some of the best travel credit cards on the market. Click here to see the list. Don’t miss these offers — they won’t be this good forever.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.
You can follow him investing $500,000 of his own money on our top AI stocks for free.