Verision reported 3Q 2011 earnings of 49 cents per share, missing the mean street estimate of 56 cents per share. Factors contributing to the miss in earnings were as follows; 7 cents per share for a non-operational charge relating to remeasurement, based on an actuarial valuation of pension plans and a $250 million or 5 cents per share negative impact due to storm-related repair costs and a two week strike affecting the wireline segment.
Revenue in the quarter rose 5.4 percent to $27.9 billion from $26.5 billion a year ago. Total operating expenses were $23.3 billion, an increase of 0.7 percent. Consolidated EBITDA was $8.8 billion, up 19.2 percent year over year. VZ has generated $21.5 billion in cash from cash operating activities through the first 9 months of 2011. Cap-ex totaled $12.5 billion on pace to meet managements full year guidance of 16.5 billion.
The company added an additional 882,000 customers this quarter amounting to a total of 107.7 million connections, an increase of 6.5 percent year over year. VZ also saw 138,000 additional FiOS internet subscribers and 131,000 FiOS TV subscribers. The negative impact of storm-related repair costs and the two week strike affected the wireline segment.
UASBIG tech analysts believe that VZ is positioned to perform well in 4Q11 as well as into fiscal year 2011. VZ was able to deliver impressive 3Q results despite both internal and external turbulence. VZ’s fresh line-up of new smartphones, tablets and data devices as well as a pent-up demand their wireline TV and internet businesses position VZ to deliver strong growth in the fourth quarter.
Shares of Verizon, rose 32 cents Friday, to close at $37.42.