Summary
Verizon Communications Inc. reported strong performance in the third quarter of 2011, with a notable increase in operating revenues driven primarily by its Domestic Wireless segment. The company saw a significant rise in service revenue and equipment sales within its wireless operations, bolstered by the growing demand for smartphones and data services. The Wireline segment, while facing declines in traditional voice services, demonstrated resilience through growth in strategic services and the expansion of its FiOS offerings. The acquisition of Terremark Worldwide, Inc. is noted as a strategic move to enhance offerings to business and government clients. Financially, Verizon demonstrated robust operating income growth, reflecting effective cost management and revenue expansion. The company also maintained a strong cash flow from operations, which was utilized for capital expenditures, debt repayment, and dividends. Despite ongoing investments in network modernization, including the 4G LTE build-out, Verizon appears to be managing its financial obligations effectively, with manageable debt levels and sufficient liquidity. Investors can find reassurance in the company's strategic focus on high-growth areas within the telecommunications sector and its commitment to operational efficiency.
Financial Highlights
51 data points| Revenue | $27.91B |
| Cost of Revenue | $11.40B |
| Gross Profit | $16.52B |
| SG&A Expenses | $7.69B |
| Operating Expenses | $23.27B |
| Operating Income | $4.65B |
| Interest Expense | $698.00M |
| Net Income | $1.38B |
| EPS (Basic) | $0.49 |
| EPS (Diluted) | $0.49 |
| Shares Outstanding (Basic) | 2.83B |
| Shares Outstanding (Diluted) | 2.84B |
Key Highlights
- 1Total operating revenues increased by 5.4% year-over-year to $27.9 billion for the third quarter of 2011.
- 2Domestic Wireless segment revenue grew by 9.1% year-over-year to $17.7 billion, driven by strong service and equipment sales.
- 3Net income attributable to Verizon increased to $1.379 billion from $0.659 billion in the prior year's comparable period.
- 4Operating income significantly improved, rising from $3.383 billion in Q3 2010 to $4.647 billion in Q3 2011.
- 5The company generated $21.5 billion in net cash from operating activities for the nine months ended September 30, 2011.
- 6Capital expenditures totaled $12.5 billion for the nine months ended September 30, 2011, primarily for network expansion and modernization.
- 7Verizon acquired Terremark Worldwide, Inc. in April 2011 to enhance its IT infrastructure and cloud services offerings.