Verizon Communications Inc reports results for the quarter ended September 30 - Earnings Summary

What happened

Verizon Communications Inc reported quarterly adjusted earnings of $1.31 per share, beating the $1.27 average estimate from twenty analysts. The article states revenue fell 99.9% to $34.31 million, while net income was $5.2 billion and reported EPS was $1.25.

Confirmed

Global impact / market context

Higher earnings per share than analysts expected suggests Verizon kept more profit per share than forecast, which can support the dividend and share price. However, the reported revenue figure of $34.31 million is far below the $34.74 billion analysts expected, so investors must judge which number reflects the business.

Analyst inference

Analyst estimates for Verizon earnings were trimmed about 0.8% over three months, and six analysts cut estimates in the last 30 days, which means forecasters grew less optimistic before this report. The average rating remains buy, with 10 buy ratings and 16 hold ratings.

Analyst inference

What to watch

1. Watch whether Verizon clarifies the reported revenue of $34.31 million, since analysts expected $34.74 billion and the article gives no explanation for the gap between those two figures. Confirmed
2. Watch whether the six analysts who lowered earnings estimates in the last 30 days revise again after this beat, since changed forecasts can shift how investors value the shares. Proposed
3. Watch whether Verizon's reported net income of $5.2 billion and adjusted earnings of $1.31 per share translate into cash available to pay dividends and fund capital spending, which means long-term investments in its network. Analyst inference

Evidence

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