{"id":25101,"date":"2016-01-21T16:38:00","date_gmt":"2016-01-21T22:38:00","guid":{"rendered":"http:\/\/news.medill.northwestern.edu\/chicago\/?p=25101"},"modified":"2016-01-22T09:33:22","modified_gmt":"2016-01-22T15:33:22","slug":"verizon-exceeds-q4-expectations","status":"publish","type":"post","link":"https:\/\/news.medill.northwestern.edu\/chicago\/verizon-exceeds-q4-expectations\/","title":{"rendered":"Verizon Exceeds Q4 Expectations"},"content":{"rendered":"

\u00a0By Ashesha Mehrotra <\/strong><\/p>\n

Verizon Communications Inc. reported higher-than-expected fourth quarter earnings Thursday, bolstered by an addition of 1.5 million wireless retail postpaid users and hefty tax benefits.<\/p>\n

The company swung to a profit of\u00a0$5.51 billion, or $1.32 per diluted common share,\u00a0from a loss of $2.14 billion, or 54 cents per share, the year-ago quarter.<\/p>\n

Shares of the nation\u2019s leading wireless phone service provider rose to $46, up $1.59, or 3.57 percent. .<\/p>\n

The company, known for its high-quality network, also reported an adjusted non-GAAP\u00a0earnings per share\u00a0of 89 cents, exceeding the Wall Street expectation of 88 cents.<\/p>\n

In the non-GAAP computation Verizon excluded favorable accounting adjustments made to its pension obligations and the gain from a sale of a spectrum license, amounting to 44 cents per share in all.<\/p>\n

\u201cWe are entering 2016 with a lot of confidence. Verizon\u2019s strong growth in earnings, and growth in high-quality connections and profitability in wireless resulted in free cash flow,\u201d said Fran Shammo, chief financial officer.<\/p>\n

Capital investment in wireless totaled $3.3 billion in the\u00a0fourth quarter and $11.7 billion, up\u00a011.5 percent, for the full year. Verizon\u00a0stated it\u00a0plans to pilot into 5G technology in 2016.<\/p>\n

\u201cThe carrier is taking a thoughtful approach towards architecting its business towards what it believes will be a ‘dual play world’ \u2013 wireless and broadband,” said Amir Rozwadowski, an analyst at Barclays PLC, in a report. “The key on the former is to ensure long-term network capacity through its support for LTE migration, new technology adoption and leading the charge on 5G while simultaneously creating platforms that expand its TAM,” or\u00a0total addressable market.<\/p>\n

Verizon recently announced a new tiered pricing model, which changes old plans that permitted unlimited data usage. Now, the average revenue per user is expected to rise as users move up to higher-priced tiers, the company stated.<\/p>\n

\u201cWireless data opportunities are expanding. About 70% of Verizon Wireless postpaid subscribers are using smartphones; therefore, the company still has an incremental penetration opportunity for wireless data services,\u201d\u00a0wrote David Heger, and analyst at Edward Jones, in his report.<\/p>\n

Acquisitions of AOL and Millennial Media significantly impacted Verizon\u2019s outlook for a cross-platform consumer and advertising offerings, mainly in video and mobile. In 2015 the company\u00a0also launched the\u00a0its mobile-first social entertainment platform, Custom TV options for its Fios customers, and Thingspace suite to make further progress in the Internet of Things.<\/p>\n

\u201cVerizon embraced transformational change in 2015, and in 2016 the company has a huge opportunity to drive a new era of growth in our industry,\u201d said Chairman and CEO Lowell McAdam in the press release.<\/p>\n

For the full year the company\u2019s net income was $18.37 billion, or \u00a0$4.32 per share, a 53.7 percent increase from the year-earlier income of $11.95 billion, or $2.42 per share. Revenues rose to $131.62 billion from $127.09 billion.<\/p>\n

Photo at top: Verizon added 1.5 million net retail postpaid connections in the December quarter; it has 112.1 million total retail connections. (Ashesha Mehrotra\/MEDILL)<\/div>\n","protected":false},"excerpt":{"rendered":"

\u00a0By Ashesha Mehrotra Verizon Communications Inc. reported higher-than-expected fourth quarter earnings Thursday, bolstered by an addition of 1.5 million wireless retail postpaid users and hefty tax benefits. The company swung to a profit of\u00a0$5.51 billion, or $1.32 per diluted common share,\u00a0from a loss of $2.14 billion, or 54 cents per share, the year-ago quarter. Shares […]<\/p>\n","protected":false},"author":239,"featured_media":25291,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[27,585],"tags":[878,688,876,877,875],"class_list":["post-25101","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","category-winter-2016","tag-aol","tag-business","tag-earnings-report","tag-finance","tag-verizon"],"yoast_head":"\nVerizon Exceeds Q4 Expectations - Medill Reports Chicago<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/news.medill.northwestern.edu\/chicago\/verizon-exceeds-q4-expectations\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Verizon Exceeds Q4 Expectations - Medill Reports Chicago\" \/>\n<meta property=\"og:description\" content=\"\u00a0By Ashesha Mehrotra Verizon Communications Inc. reported higher-than-expected fourth quarter earnings Thursday, bolstered by an addition of 1.5 million wireless retail postpaid users and hefty tax benefits. The company swung to a profit of\u00a0$5.51 billion, or $1.32 per diluted common share,\u00a0from a loss of $2.14 billion, or 54 cents per share, the year-ago quarter. 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