Summary
Verizon Communications Inc. reported its third-quarter 2020 results, showing a slight decrease in total operating revenues to $31.54 billion compared to $32.89 billion in the same period of 2019. This decline was primarily attributed to lower wireless equipment revenues and, to a lesser extent, service revenues, impacted by customer behavior changes and strategic decisions related to the COVID-19 pandemic, such as waiving late fees and offering expanded data. Despite revenue pressures, the company maintained a strong operating income of $7.68 billion. Net income attributable to Verizon for the quarter was $4.36 billion, resulting in diluted earnings per share of $1.05. The company also highlighted robust operating cash flow generation, with $32.47 billion for the nine months ended September 30, 2020, contributing to significant free cash flow. Verizon continued its strategic investments in network expansion, particularly in 5G, while managing its debt levels and returning capital to shareholders through dividends.
Financial Highlights
48 data points| Revenue | $31.54B |
| SG&A Expenses | $7.34B |
| Operating Expenses | $23.86B |
| Operating Income | $7.68B |
| Interest Expense | $1.04B |
| Net Income | $4.36B |
| EPS (Basic) | $1.05 |
| EPS (Diluted) | $1.05 |
| Shares Outstanding (Basic) | 4.14B |
| Shares Outstanding (Diluted) | 4.14B |
Key Highlights
- 1Total operating revenues for the third quarter of 2020 decreased by 4.1% to $31.54 billion compared to $32.89 billion in Q3 2019.
- 2Net income attributable to Verizon was $4.36 billion ($1.05 per diluted share) for the third quarter of 2020, down from $5.19 billion ($1.25 per diluted share) in the prior year period.
- 3Operating income for the quarter was $7.68 billion, a slight decrease from $8.18 billion in Q3 2019.
- 4The company generated $32.47 billion in cash from operating activities for the nine months ended September 30, 2020, an increase from $26.75 billion in the same period of 2019.
- 5Free cash flow for the nine months ended September 30, 2020, was $18.3 billion, up from $14.4 billion in the prior year.
- 6Verizon announced a pending acquisition of TracFone Wireless, Inc. for approximately $6.2 billion in cash and stock, subject to regulatory approvals.
- 7Capital expenditures for the nine months ended September 30, 2020, were $14.2 billion, an increase from $12.3 billion in the comparable period of 2019, reflecting ongoing investments in 5G and fiber networks.