Verizon Communications Inc. (NYSE: VZ) reported its third-quarter earnings before the market opened Tuesday. The telecommunication giant reported earnings of $0.89 per share and $31.6 billion in revenue, against Thomson Reuters consensus estimates of $0.91 in earnings per share and $31.58 billion in revenue. In the third quarter of the previous year, it recorded earnings as $0.77 per share and $30.28 billion in revenue.
The company did not give formal earnings and revenue guidance for the fourth quarter or the full year, but it did back 4% top-line growth (revenue) for 2014. Thomson Reuters has consensus estimates of $3.53 in earnings per share and $126.08 billion in revenue for 2014.
Net income for the third quarter was $3.79 billion, which fell year-over-year from $5.58 billion.
Total revenues from the Wireless segment were $21.8 billion, up 7% from the previous year. Out of this, service revenues totaled $18.4 billion. The Wireless operating income margin was 31.9%. Wireless added 1.53 million retail net connections, and at the end of the third quarter the total retail connections the company had was 106.2 million.
Total revenues for the Wireline segment were $9.6 billion, up only 0.8% from the previous year. Out of this, consumer revenues made up $3.9 billion. The Wireline operating income margin was 2.3%, compared to 1.5% in the third quarter of the previous year.
Chairman and CEO Lowell McAdam said:
We see continued, healthy customer demand for wireless and broadband services, and we are encouraged by the growth we are starting to see in the areas of video delivery and machine-to-machine. Our cash generation remains strong, and last month we were pleased to announce board approval of a quarterly dividend increase for the eighth consecutive year.
Argus reiterated a Buy rating for Verizon with a price target of $59, based on it having a substantial lead over competitors in building out its advanced 4G LTE network and in providing fundamental network reliability.
ALSO READ: Earnings Previews: AT&T vs. Verizon
Shares closed Monday up almost 1% at $48.48. In Tuesday’s premarket trading, in response to the earnings report shares moved down only slightly, less than 1%, to $48.30.
The stock has a consensus analyst price target of $53.84 and a 52-week range of $45.45 to $53.66. The company has a market cap of roughly $201 billion.
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