Categories AlphaGraphs, Earnings, LATEST, Technology

Verizon reports strong first quarter 2018 results

Verizon Communications Inc. (VZ) reported a 6.6% growth in consolidated operating revenues to $31.8 billion for the first quarter of 2018, compared to the prior-year period.

Net income grew 31.3% year-over-year to $4.7 billion. GAAP EPS came in at $1.11 while adjusted EPS was $1.17.

Verizon’s Q1 2018 results beat market estimates. Shares rose 3% in premarket trading.

Verizon Q1 2018 Earnings

Total wireless revenues grew 4.7% to $21.9 billion from the prior-year but service revenues dropped 2.4%. Total wireline revenues fell 1.8%, while total Fios revenues grew 1.9% year-over-year.

Verizon expects full-year 2018 consolidated revenue growth at low single-digit percentage rates on a GAAP basis. Service revenue growth is expected to turn positive by 2018-end. The company also expects low single-digit percentage growth in adjusted EPS for 2018.

In 2018, capital expenditures are expected to be in the range of $17 billion to $17.8 billion, including the commercial launch of 5G.

Tax reform savings are expected to provide an uplift of $3.5 billion to $4 billion to cash flow from operations in 2018, which is projected to result in a $0.55 to $0.65 increase in EPS.

In 2017, Verizon said it plans to achieve $10 billion in cash savings over the next four years. The company has achieved around $200 million in savings thus far and is on track to achieve its goals over the four-year period.

Total Verizon Connect revenues were $234 million in Q1 2018. Internet of Things (IoT) revenues, including Verizon Connect, grew around 13% year-over-year.

Tax reform savings are expected to provide an uplift of $3.5 billion to $4 billion to cash flow from operations in 2018, which is projected to result in a $0.55 to $0.65 increase in EPS.

Verizon saw a net increase of 260,000 retail postpaid connections in Q1 2018. Postpaid smartphone net additions were 220,000. Total retail postpaid churn was 1.04%. The company added a net of 66,000 Fios Internet connections and lost 22,000 Fios Video connections, reflecting the cord-cutting trend.

Also Read:  Infographic: Chewy (CHWY) Q2 2020 earnings in a nutshell

The DOJ is carrying out an investigation into whether the four major wireless carriers – Verizon, AT&T (T), Sprint (S) and T-Mobile (TMUS) – were involved in suppressing technology that would help customers easily change providers. The agency has asked all four carriers for information on this matter.

Most Popular

COVID-19 drove retailers up the digital path years ahead than anticipated

Earlier we looked into how, during the COVID-19 pandemic, retailers saw changing trends in terms of their assortments and how the acceleration of online shopping led many of them to

Snowflake (SNOW) creates a record as the most successful software IPO ever; stock more than doubles

Data is at the heart of business innovation. Recognizing this trend, companies are seeking ways to transform their businesses by capturing, analyzing, and mobilizing data. The public cloud is becoming

Adobe (ADBE) sees new tailwinds as virtual shift gathers steam

The second half has been highly rewarding for design software maker Adobe Inc. (NASDAQ: ADBE) amid stable demand for digital content solutions. The company has remained unaffected by the virus-related

Tags

Top