Summary
Verizon Communications Inc. reported solid financial results for the nine months ending September 30, 2017. Total operating revenues were $92.1 billion, a slight decrease from $93.6 billion in the prior year period, primarily due to a decline in the Wireless segment. However, net income attributable to Verizon increased significantly to $11.4 billion from $8.6 billion in the same period last year, bolstered by a substantial net gain on the sale of divested businesses, notably the data center sale, which contributed $1.8 billion. The company continued its strategic investments in network infrastructure, particularly in 5G technology deployment and fiber optic expansion, with capital expenditures totaling $11.3 billion for the nine-month period. Significant acquisitions were also completed, including XO Holdings' wireline business and Yahoo's operating business, which contributed to an increase in goodwill and intangible assets. Financially, Verizon demonstrated effective debt management by executing various debt exchange and tender offers, reducing overall interest expense and extending debt maturities. Free cash flow remained robust at $5.9 billion for the nine months, supporting dividend payments and strategic initiatives. Investors should note the ongoing strategic shifts, including the integration of Oath (formerly Yahoo's business) and continued focus on network leadership.
Financial Highlights
50 data points| Revenue | $31.72B |
| Cost of Revenue | $4.96B |
| Gross Profit | $26.75B |
| SG&A Expenses | $7.48B |
| Operating Expenses | $24.73B |
| Operating Income | $6.99B |
| Interest Expense | $1.16B |
| Net Income | $3.62B |
| EPS (Basic) | $0.89 |
| EPS (Diluted) | $0.89 |
| Shares Outstanding (Basic) | 4.08B |
| Shares Outstanding (Diluted) | 4.09B |
Key Highlights
- 1Total operating revenues for the nine months ended September 30, 2017, were $92.1 billion, a decrease of 1.7% year-over-year.
- 2Net income attributable to Verizon for the nine months increased significantly to $11.4 billion, up from $8.6 billion in the prior year, largely due to gains from divestitures.
- 3Capital expenditures for the nine months totaled $11.3 billion, reflecting ongoing investments in network infrastructure and 5G deployment.
- 4The company completed the acquisition of Yahoo's operating business in June 2017, integrating it into its Oath media and technology brand.
- 5Verizon completed the acquisition of XO Holdings' wireline business in February 2017, enhancing its fiber-optic network capabilities.
- 6Debt management was active, with significant debt exchange and tender offers conducted throughout the period.
- 7Free cash flow for the nine months was $5.9 billion, demonstrating strong operational cash generation.