On Jan. 28, Verizon Communications
- 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)
(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 |
$53.7 |
23.1 |
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