Summary
Verizon Communications Inc. reported its financial results for the third quarter ended September 29, 2022. Total operating revenues increased by 4.0% to $34.2 billion compared to the same period in the prior year, driven by growth in the Consumer segment. Net income, however, saw a decline of 23.4% to $5.0 billion for the quarter, and a 16.2% decrease for the nine-month period to $15.1 billion, largely influenced by "special items" and increased operating expenses, particularly in cost of wireless equipment and selling, general, and administrative expenses. The company continued to invest heavily in its network infrastructure, with capital expenditures of $15.8 billion for the nine months ended September 30, 2022, reflecting the ongoing deployment of its 5G network and C-Band spectrum. Despite increased revenues, the company faced higher operating costs, impacting profitability. Verizon's financial health remains robust, supported by strong operating cash flow, though investors should monitor the impact of ongoing network investments and inflationary pressures on future earnings.
Financial Highlights
48 data points| Revenue | $34.24B |
| SG&A Expenses | $7.42B |
| Operating Expenses | $26.35B |
| Operating Income | $7.89B |
| Interest Expense | $937.00M |
| Net Income | $4.90B |
| EPS (Basic) | $1.17 |
| EPS (Diluted) | $1.17 |
| Shares Outstanding (Basic) | 4.20B |
| Shares Outstanding (Diluted) | 4.20B |
Key Highlights
- 1Total operating revenues increased by 4.0% year-over-year to $34.2 billion for the third quarter of 2022, primarily driven by the Consumer segment's growth.
- 2Net income for the third quarter decreased by 23.4% to $5.0 billion, impacted by higher operating expenses and special items.
- 3Capital expenditures for the nine months ended September 30, 2022, totaled $15.8 billion, reflecting continued investment in 5G network and C-Band spectrum deployment.
- 4The Consumer segment showed significant revenue growth of 10.8% year-over-year in the third quarter, reaching $25.8 billion.
- 5The Business segment's revenue saw a modest increase of 1.9% in the third quarter to $7.8 billion, but experienced a slight decrease of 0.3% for the nine-month period.
- 6The company continues to manage its debt levels, with total debt at $147.9 billion as of September 30, 2022.
- 7Free cash flow for the nine months ended September 30, 2022, decreased by $4.9 billion to $12.4 billion, primarily due to increased capital expenditures and lower operating cash flows.