Earnings: Verizon Profit Down; Wireless Unit Revenues Jump

Verizon (NYSE: VZ) reported that third quarter profit dropped 30 percent to $2.89 billion, or $0.41 a share, down from $3.2 billion, or $0.59 a share a year ago. Stripping out charges, profit was down to $0.60 per share, compared to $0.66 a year ago. Revenues came in at $27.3 billion, up 10.2 percent a year earlier, thanks in part to its Alltel (NYSE: AT) acquisition in January. Still, Verizon able to just beat expectations. Analysts surveyed by Thomson Reuters (NSDQ: TRIN) had expected $0.59 per share excluding charges on $27.2 billion in revenue, according to the AP.

3Q 2008 3Q 2009 Estimate
EPS $0.66 $0.60 $0.59
Net Income $3.2B $2.89B <n/a
Revenue $27.3B $24.8B $27.2B

As with rival AT&T (NYSE: T), Verizon is getting its biggest boost from its wireless division, which saw a 24.4 percent jump in revenues to $15.8 billion compared with last year. The unit added 1.2 million subscribers, for a total base of 89 million. Net adds were in line with analyst expectations, but still nowhere near the 2 million that AT&T, exclusive carrier of the iPhone was able to manage. Postpaid churn also crept up, to 1.13 percent from 1.08 percent a year ago, while retail postpaid ARPU was stable at $52.78.

FiOS, Verizon