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10-QPeriod: Q3 FY2023

VERIZON COMMUNICATIONS INC Quarterly Report for Q3 Ended Sep 30, 2023

Filed October 26, 2023For Securities:VZ

Summary

Verizon Communications Inc. reported its third-quarter 2023 financial results, showing a slight decrease in total operating revenues to $33.3 billion, down from $34.2 billion in the prior year's comparable period. This decline was primarily driven by a decrease in wireless equipment revenues. Despite the revenue dip, the company demonstrated solid operational execution. Net income attributable to Verizon was $4.76 billion, or $1.13 per diluted share, reflecting stable profitability compared to the previous year. Cash flow from operations remained strong, with $28.8 billion generated for the nine months ended September 30, 2023, an increase from $28.2 billion in the prior year. This robust operating cash flow, coupled with a reduction in capital expenditures, led to a significant increase in free cash flow to $14.6 billion for the nine-month period. The company also highlighted its ongoing investments in network technology, particularly its 5G network and C-Band spectrum deployment, positioning it for future growth.

Financial Statements
Beta
Revenue$33.34B
SG&A Expenses$8.00B
Operating Expenses$25.86B
Operating Income$7.47B
Interest Expense$1.43B
Net Income$4.76B
EPS (Basic)$1.13
EPS (Diluted)$1.13
Shares Outstanding (Basic)4.21B
Shares Outstanding (Diluted)4.22B

Key Highlights

  • 1Total operating revenues for the third quarter were $33.3 billion, a slight decrease of 2.6% year-over-year, primarily due to lower wireless equipment sales.
  • 2Net income attributable to Verizon was $4.76 billion for the quarter, resulting in diluted EPS of $1.13, largely in line with the prior year.
  • 3Operating cash flow for the first nine months of 2023 increased to $28.8 billion from $28.2 billion in the prior year.
  • 4Free cash flow saw a significant increase, reaching $14.6 billion for the first nine months of 2023, up from $12.4 billion in the same period last year, driven by higher operating cash flow and lower capital expenditures.
  • 5Capital expenditures decreased to $14.2 billion for the nine months ended September 30, 2023, down from $15.8 billion in the prior year, reflecting the completion of the accelerated C-Band deployment program.
  • 6The Consumer segment's total operating revenues decreased by 2.3% year-over-year, while the Business segment's revenues saw a 4.0% decline.
  • 7Verizon continues to invest in its 5G network and C-Band spectrum, with ongoing deployment aimed at enhancing network capabilities and future growth.

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