Verizon Meets Earnings Expectations in 3Q17
Verizon’s earnings over the past few quarters
Verizon Communications (VZ) reported stronger-than-expected 3Q17 earnings, with its wireless business rebounding to show another strong quarter of subscriber growth in a highly competitive environment. In 3Q17, Verizon’s earnings met the Wall Street analysts’ consensus earnings estimate, but its adjusted EPS (earnings per share) fell ~3.0% YoY (year-over-year) to $0.98 on the exclusion of one-time items.
Interested in FB? Don't miss the next report.
Receive e-mail alerts for new research on FB
Verizon’s major competitors had a much better 3Q17. AT&T’s (T) adjusted EPS remained flat YoY to reach $0.74 in 3Q17. T-Mobile’s (TMUS) EPS grew ~50.0% YoY to reach $0.63 in 3Q17.
Meanwhile, Sprint’s (S) EPS improved from a loss of $0.04 in fiscal 2Q16 to an EPS loss of $0.01 in fiscal 2Q17 (quarter ending September 2017).
Verizon optimistic about digital media
Verizon foresees that wireless video and IoT (Internet of Things) will likely be front-runners in driving data usage, revenue, and earnings as the traditional US wireless smartphone market becomes saturated. Organically, in 3Q17, Verizon’s IoT and telematics revenues grew ~13.1% YoY to reach $251 million.
In order to boost its position in the advertising and digital media space, the Yahoo acquisition will likely play a crucial role in Verizon’s future campaign. Verizon concentrates on becoming a significant digital advertising player like the industry giant Alphabet (GOOGL) and Facebook (FB).
In the next part, we’ll look at Verizon’s total revenue growth in 3Q17.