Summary
Verizon Communications Inc. reported a modest increase in total operating revenues for the third quarter of 2019, reaching $32.9 billion, up from $32.6 billion in the prior year period. This growth was primarily driven by its Consumer segment, which saw an increase in service and other revenues, partially offsetting a slight dip in wireless equipment sales. The Business segment experienced a slight revenue decline. Net income attributable to Verizon increased to $5.19 billion, or $1.25 per diluted share, from $4.92 billion, or $1.19 per diluted share, in the same quarter last year, indicating improved profitability. The company continued its strategic investments in network infrastructure, including 5G deployment, with capital expenditures remaining robust. Operationally, Verizon demonstrated effective cost management, leading to a decrease in total operating expenses. The company's financial position remains stable, with a significant portion of its debt at fixed rates, mitigating interest rate risk. The adoption of new lease accounting standards (Topic 842) significantly impacted the balance sheet, increasing both operating lease assets and liabilities. Investors should note the continued focus on network upgrades and subscriber growth within the competitive telecommunications landscape.
Financial Highlights
46 data points| Revenue | $32.89B |
| SG&A Expenses | $7.22B |
| Operating Expenses | $24.71B |
| Operating Income | $8.18B |
| Interest Expense | $1.15B |
| Net Income | $5.19B |
| EPS (Basic) | $1.26 |
| EPS (Diluted) | $1.25 |
| Shares Outstanding (Basic) | 4.14B |
| Shares Outstanding (Diluted) | 4.14B |
Key Highlights
- 1Total operating revenues increased slightly to $32.9 billion in Q3 2019 compared to $32.6 billion in Q3 2018.
- 2Net income attributable to Verizon increased to $5.19 billion ($1.25 EPS) in Q3 2019, up from $4.92 billion ($1.19 EPS) in Q3 2018.
- 3The Consumer segment showed revenue growth driven by increased service and other revenues, while the Business segment experienced a slight decline.
- 4Total operating expenses decreased by 0.9% to $24.7 billion in Q3 2019, indicating successful cost management.
- 5Capital expenditures for the first nine months of 2019 were $12.3 billion, reflecting ongoing investment in network infrastructure, including 5G.
- 6The company continued to manage its debt effectively, with approximately 81% of its debt portfolio at fixed rates.
- 7Adoption of new lease accounting standards (Topic 842) resulted in a significant increase in operating lease right-of-use assets and liabilities on the balance sheet.