Verizon Quarterly Earnings Analysis: By the Numbers

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Earns Verizon
AP/Don Ryan

Verizon Communications (VZ) just reported its preliminary financial results for the quarter that ended Sept. 30, based upon which we provide a unique analysis of its performance. Our analysis focuses on the company's performance for the same quarterly period on a year-on-year basis (unless stated otherwise).

Verizon is one of the first companies amongst its peer group to announce earnings for this period.

Highlights

  • EPS numbers: Missed Estimate. Reported 89 cents versus the estimated 90 cents per share.

  • Summary numbers: Revenues of $31.586 billion, Net Earnings of $3.695 billion and EPS of $0.89.

  • Earnings miss despite performance focus on earnings: same period year-on-year change in earnings of 65.55% better than change in revenues of 4.32%

  • Gross margins now 61.21% from 63.80% compared to the same period last year, EBITDA margins now 35.01% from 36.34%

  • Potential weakening of the balance sheet? Year-on-year change in Operating Cash Flow of -25.68% trailed its change in earnings

  • Year-on-year earnings up despite decline in EBIT margins and pretax margins.