Things Have Changed for Verizon: Fool by Numbers
By Anders Bylund
January 28, 2008
Recommended (0)
On Jan. 28, Verizon Communications (NYSE: VZ) released earnings for the 2007 fiscal year, ended Dec. 31.
- Verizon has 8.1% fewer landline customers today than a year ago, but 17.9% more high-speed data line subscribers and 11.3% more wireless accounts. The telecom times, they are a-changin'.
- The company is still growing revenue at a respectable clip and widening its operating margins.
- Small-time telecom operators have the Motley Fool CAPS crowd all tangled up in blue, but when AT&T (NYSE: T) and Verizon roll around, everybody's gonna jump for joy. Weigh in with your own ratings and comments right here.
(Figures in millions, except per-share data.)
Income Statement Highlights
|
FY 2007
|
FY 2006
|
Change
|
|
Sales
|
$93,469
|
$88,182
|
6.0%
|
|
Net Profit
|
$5,521
|
$6,197
|
(10.9%)
|
|
EPS
|
$1.90
|
$2.12
|
(10.0%)
|
|
Diluted Shares
|
2,902.0
|
2,938.0
|
(1.2%)
|
Get back to basics with the income statement.
Margin Checkup
|
FY 2007
|
FY 2006
|
Change*
|
|
Operating Margin
|
16.7%
|
15.2%
|
1.5
|
|
Net Margin
|
5.9%
|
7.0%
|
(1.1)
|
*Expressed in percentage points.
Margins are the earnings engine.
Balance Sheet Highlights
|
Assets
|
FY 2007
|
FY 2006
|
Change
|
|
Cash + ST Invest.
|
$3,397
|
$5,653
|
(39.9%)
|
|
Accounts Rec.
|
$11,736
|
$10,891
|
7.8%
|
|
Inventory
|
$1,729
|
$1,514
|
14.2%
|
|
Liabilities
|
FY 2007
|
FY 2006
|
Change
|
|
Long-Term Debt
|
$28,203
|
$28,646
|
(1.5%)
|
The balance sheet reflects the company's health.
Cash Flow Highlights
|
FY 2007
|
FY 2006
|
Change
|
|
Cash From Ops.
|
$25,739
|
$24,106
|
6.8%
|
|
Capital Expenditures
|
$17,538
|
$17,101
|
2.6%
|
|
Free Cash Flow
|
$8,201
|
$7,005
|
17.1%
|
Free cash flow is a Fool's best friend.
Competitive Context
|
Market Cap (in $ billions)
|
Trailing P/E Ratio
|
CAPS Rating
|
|
AT&T
|
$216.7
|
18.5
|
****
|
|
Verizon
|
$108.1
|
19.7
|
****
|
|
Comcast (Nasdaq: CMCSA)
|
$53.7
|
23.1
|
**
|
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