 announce that revenue and earnings per share in the third quarter have met or exceeded analyst forecasts, share prices rise as a result.){kind=link}
Verizon (NYSE:VZ) announce that revenue in the third quarter has increased by 2.5% year-on-year. Their revenue in the third quarter was $31.7 billion, whilst net profit was $3.7 billion and their profit margin was 22.7%.
The increase in revenue is due to a net increase of 603,000 of retail postpaid connections in the quarter as well as adding 30,000 postpaid connections, which is in stark contrast to 2016 when they lost 107,000 connections.
Lowell McAdam, chairman and CEO of Verizon, said that they “delivered another quarter of profitable growth combined with strong customer loyalty,” shown by their low churn rate – the rate at which customers cease their subscriptions – of 0.75% and that their success “is based on the strength of the Verizon network”.
McAdam also stated that Verizon have “maintained the financial flexibility to increase shareholder dividends for an 11th consecutive year,” whilst “steadily investing to advance our network leadership and to build the Verizon Intelligent Edge Network”.
Verizon’s earnings per share (EPS) was 89 cents, whereas its adjusted EPS, excluding special items, was 98 cents, however this is compared to $1.01 in 2016. Verizon also expect “full-year 2017 consolidated revenues, on an organic basis, to be fairly consistent with 2016”.
Analysts polled bybThomson Reuters forecasted Verizon’s adjusted EPS to be 98 cents, which they matched, and revenue to be $31.45 billion, which they exceeded.
Verizon’s shares are currently trading 49.80, up 2.36%, at the time of publication.