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Verizon’s Q3 2018 Earnings Surpass Analysts’ Estimates

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Oct. 24 2018, Published 4:47 p.m. ET

Verizon exceeds third-quarter earnings expectations

Verizon Communications (VZ) delivered another strong quarter when it reported its third-quarter financial results on October 23. Verizon’s earnings beat the consensus Wall Street estimate by ~2.5%. The company’s adjusted EPS rose ~24.5% YoY (year-over-year) to reach $1.22 in the third quarter.

Excluding the net effects of tax reform and the adoption of the new revenue recognition accounting standard, Verizon’s adjusted EPS rose ~3.1% YoY to reach $1.01 in the third quarter.

Verizon’s consolidated adjusted EBITDA increased by ~6.8% YoY to reach $12.2 billion in the third quarter. Verizon’s consolidated adjusted EBITDA margin increased from ~36.0% in the third quarter of 2017 to ~37.4% in the third quarter, supported by higher wireless margins.

The company’s wireless segment’s EBITDA rose ~10.0% YoY to reach $11.0 billion in the third quarter. Meanwhile, the wireline segment’s EBITDA fell ~6.9% YoY to reach $1.5 billion.

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Stock price reaction

Verizon (VZ) stock reacted positively to the company’s third-quarter earnings report, rising ~4.1% on October 23. That day, telecom peers T-Mobile (TMUS) and Sprint (S) fell ~0.3% and ~0.8%, respectively. AT&T (T) stock rose ~1.1% on October 23.

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