Verizon Communications’ (NYSE: VZ) fourth quarter 2019 earnings fell short of the market’s targets while sales surpassed the analysts’ views. Verizon posted adjusted earnings of $1.13 per share on revenue of $34.8 billion. Analysts had predicted the telecom firm to report earnings of $1.14 per share on revenue of $34.6 billion. VZ stock was down about 1% immediately in the before market hours after the earnings announcement.
On a GAAP basis, Verizon’s profit was $1.23 per share compared with $0.47 in the fourth quarter of 2018. Revenue growth of 1.4% for the three months ended December 31, 2019, was driven by higher wireless service revenue.
For fiscal 2020, Verizon expects adjusted EPS to grow 2% to 4% and revenue to grow low-to-mid single-digit percent compared to the fiscal 2019. The company estimates to spend $17 billion to $18 billion in FY20, which includes the expansion of 5G in new and existing markets, the densification of 4G, and the continuation of the fiber build-out.
Verizon delivered strong operational performance in the fourth quarter, highlighted by continued wireless customer growth in both Consumer and Business,” said CEO Hans Vestberg.
Total Verizon Consumer reported 852,000 wireless retail postpaid net additions in the recently ended quarter. This consisted of 588,000 phone net additions up 12.6% year-over-year, and 723,000 postpaid smartphone net additions.
Total Verizon Business reported 396,000 wireless retail postpaid net additions in Q4 2019, up 18.6% year-over-year. This consisted of 202,000 phone net additions, 132,000 tablet net additions and 62,000 other connected device additions.
VZ shares have dropped 3% in the past one month and gained 12% in the past 12 months.