Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Verizon Carries the Day

Watch stocks you care about

The single, easiest way to keep track of all the stocks that matter...

Your own personalized stock watchlist!

It's a 100% FREE Motley Fool service...

Click Here Now

Leading U.S. telecom provider Verizon Communications (NYSE: VZ  ) did its part to restore faith in the economy by releasing solid third-quarter earnings to the market this morning. While last quarter displayed how Verizon is certainly taking a hit from the souring economy, this quarter's results show that the issues are manageable.

Despite struggles to retain customers in traditional telephony services, Verizon made up for it in other areas and delivered $24.8 billion in revenue this quarter. Once again, strong results from investments in wireless and broadband helped carry the business and deliver $1.67 billion in net income. Investors welcomed the news, bidding shares of Verizon up by more than 10% midway through the day.

Verizon continues to convert customers to its new broadband television and Internet offering, FiOS, netting 233,000 TV and 225,000 Internet customers in the quarter. Wireless operations continue to grow at double-digit rates as well. Verizon integrated customers from its Rural Cellular acquisition this quarter, helping it post 2.1 million new wireless customers to its role.

One metric that stood out in Verizon's wireless results was a slight uptick in customer churn to 1.33%, above the 1.12% last quarter and even the 1.27% last year. Though this low turnover still leads the industry, there's no denying that AT&T (NYSE: T  ) is winning Verizon customers over with the latest Apple (Nasdaq: AAPL  ) iPhone. Verizon management continues to emphasize a broad-based portfolio of devices, though, rather than being, in the words of President and COO Denny Strigl, "wedded to just any one iconic device".

I'm sure Verizon would be happy to jump on the "iconic device" bandwagon, though, should the new Blackberry Storm from Research In Motion (Nasdaq: RIMM  ) become a big hit this holiday season. The touchscreen Blackberry offers the best competition yet to the iPhone, Sprint Nextel's (NYSE: S  ) Instinct, and the HTC Dream from Deutsche Telekom's (NYSE: DT  ) T-Mobile USA. Verizon Wireless will be the exclusive seller of the device in the U.S., while partner Vodafone (NYSE: VOD  ) will offer it in Europe, India, Australia, and New Zealand.

Even after today's jump, shares of Verizon are near the lowest price they've seen in more than a decade. While I wouldn't call Verizon a screaming bargain at this level, its consistency in operations and 6.6% dividend yield certainly make it an attractive alternative to many other stocks.

For more Foolishness:

Apple is one of many game-changing companies picked by the Motley Fool Stock Advisor service. To see all the stocks that have helped Tom and David Gardner beat the market by 25 points on average, take a free 30-day trial.

Fool contributor Dave Mock is still oddly disturbed by the sight of dust bunnies. He owns no shares of companies mentioned here. Apple is a Stock Advisor recommendation. Sprint Nextel is an Inside Value recommendation. The Fool's disclosure policy does windows too.

Read/Post Comments (0) | Recommend This Article (2)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 763391, ~/Articles/ArticleHandler.aspx, 10/21/2016 10:19:01 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 1 hour ago Sponsored by:
DOW 18,145.71 -16.64 -0.09%
S&P 500 2,141.16 -0.18 -0.01%
NASD 5,257.40 15.57 0.30%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

10/21/2016 4:03 PM
VZ $48.20 Down -0.94 -1.91%
Verizon Communicat… CAPS Rating: ****
AAPL $116.60 Down -0.46 -0.39%
Apple CAPS Rating: ****
BBRY $7.37 Down -0.11 -1.47%
BlackBerry CAPS Rating: *
DT.DL $11.83 Down +0.00 +0.00%
Deutsche Telekom A… CAPS Rating: ***
S $6.55 Down -0.17 -2.53%
Sprint CAPS Rating: **
T $37.49 Down -1.16 -3.00%
AT and T CAPS Rating: ****
VOD $27.77 Down -0.05 -0.18%
Vodafone CAPS Rating: ****