Strong Q4 Earnings For Verizon Communications Inc (NYSE:VZ)
Verizon Communications Inc (NYSE:VZ) recently reported their Q4 results along with full financial year results. The company posted diluted quarterly earnings of $0.66 per share on a revenue total of $31.1 billion. The results for the fourth quarter are pretty close to the consensus estimates of the company.
For the year 2013, the adjusted EPS was reported at $4.00 and $120.55 billion in revenues. The company had an EPS of $2.31 on revenue of $115.85 billion in the previous year. The consensus estimates are close to the total revenue but the EPS is a little higher than expected.
Verizon Communications hopes that the company will soon acquire stake in Verizon Wireless, which is owned by Vodafone by February. This is a strong point for the company to focus on at the moment as it will push earnings up by at least 10%.
Strong Mobile Growth for Verizon
The earnings were primarily attributed to the strong mobile growth that was seen during 2013 for the company. Fourth quarter revenue generated was at around $21 billion, which is grew by 5.7% on year over year basis. The number of postpaid customers for the company grew by as much as 1.7 million in the last quarter of the year. The postpaid average revenue per account also saw an increase by 7% to reach a figure of $157.21. Verizon’s total number of retail connections stands at 102.8 million which is a rise by 4.7% as compared to the same quarter in the previous year. The operating margins for wireless also came up at 29.5%.
Wireline business also did well for the company generating revenue of $3.8 billion which is an increase of 6.4%; a major part of the growth for the company in this segment came from FiOS service. The FiOS internet service added 126000 new customers and the FiOs video service also added around 90000 customers. FiOS internet service has grown by 11.9% as compared to Q4 from 2012 and so has the FiOS video service.