On Jan. 29, telecom giant Verizon
- The number of phone-line customers may be dropping, but Verizon is turning in great numbers in data communications and mobile phone services to cover that shortfall.
- The year-ago numbers included a $0.12 net gain per share from discontinued operations, while this year saw a $0.12 charge on the same line. On a continuing operations basis, then, we're talking about an earnings drop from $0.48 per share to $0.47.
- Verizon is paying down debt and stacking up on cash, though shareholders might appreciate other cash uses like dilution control. The company spent $1.7 billion on share repurchases and paid out $4.7 billion in dividends in 2006, out of $23 billion in operational cash flow.
(Figures in millions, except per-share data)
Income Statement Highlights
|
Q4 2006 |
Q4 2005 |
Change |
|
|---|---|---|---|
|
Sales |
$22,598 |
$17,927 |
26.1% |
|
Net Profit |
$1,032 |
$1,658 |
(37.8%) |
|
EPS |
$0.35 |
$0.60 |
(41.7%) |
|
Diluted Shares |
2,916 |
2,764 |
5.5% |
Get back to basics with a look at the income statement.
Margin Checkup
|
Q4 2006 |
Q4 2005 |
Change* |
|
|---|---|---|---|
|
Gross Margin |
59.9% |
65.2% |
(5.2) |
|
Operating Margin |
15.2% |
17.6% |
(2.3) |
|
Net Margin |
4.6% |
9.3% |
(4.7) |
Margins are the earnings engine. See how they work.
Management Effectiveness
|
Q4 2006 |
Q4 2005 |
Change* |
|
|---|---|---|---|
|
Return on Assets |
2.2% |
3.9% |
(1.7) |
|
Return on Equity |
8.8% |
16.8% |
(8.1) |
See how management puts its financial tools to work.
Balance Sheet Highlights
|
Assets |
Q4 2006 |
Q4 2005 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$5,653 |
$2,906 |
94.5% |
|
Accounts Rec. |
$10,891 |
$8,534 |
27.6% |
|
Inventory |
$1,514 |
$1,522 |
(0.5%) |
|
Liabilities |
Q4 2006 |
Q4 2005 |
Change |
|---|---|---|---|
|
Accounts Payable |
$14,320 |
$11,747 |
21.9% |
|
Long-Term Debt |
$28,646 |
$31,569 |
(9.3%) |
Learn the ways of the balance sheet.
Cash Flow Highlights
|
Q4 2006 |
Q4 2005 |
Change |
|
|---|---|---|---|
|
Cash From Ops. |
$5,855 |
$6,737 |
(13.1%) |
|
Capital Expenditures |
$4,823 |
$3,654 |
32.0% |
|
Free Cash Flow |
$1,032 |
$3,083 |
(66.5%) |
|
$1,708 |
$1,698 |
0.6% |
Find out why Fools always follow the money.
Cash Conversion Checkup
|
Q4 2006 |
Q4 2005 |
Change |
|
|---|---|---|---|
|
Days in Inventory |
15.7 |
21.8 |
(6.1) |
|
Days in Receivables |
43.3 |
44.9 |
(1.6) |
|
Days Payables Outstanding |
143.2 |
176.6 |
(33.4) |
|
Cash Conversion Cycle |
(84.2) |
(109.9) |
25.7 |
Read up on cash conversion metrics.
Related Companies:
-
AT&T
(NYSE:T) -
Comcast
(NASDAQ:CMCSA) -
Sprint Nextel
(NYSE:S) -
Vonage
(NYSE:VG)
Related Foolishness:
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Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean.
At the time of publication, Anders Bylund had no position in any company mentioned. Fool rules are here.
