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



Who Hears Verizon Now?

As anticipated, Verizon Communications (NYSE: VZ  ) dialed up another quarter of strong results -- solid revenue growth coupled with healthy net income and cash flow. Considering the recent volatility of the markets,¬†Verizon's capping a solid year was welcome news, but not impressive enough: Verizon shares dropped slightly following the report.

On a consolidated basis, Verizon brought in $23.8 billion in revenue for the quarter, up 5.5% from the same period last year. Net income also increased -- 3.9% to $1.07 billion. As in previous quarters, Verizon's business continues to be driven by wireless and broadband segments, while traditional wireline telephony services decline. In the full year 2007, Verizon lost 8.1% of its access lines.

Growth in markets for broadband data and television services is making up for this lost business, and Verizon now claims to have 1 million FiOS TV subscribers. Its companion fiber-optic Internet service and other options from partner DIRECTV (NYSE: DTV  ) have staved off competing programming alternatives from companies such as Comcast (Nasdaq: CMCSA  ) .

While Verizon kept some strong operational trends going, one title was lost to a competitor. For the first time in years, Verizon Wireless -- operated with partner Vodafone (NYSE: VOD  ) -- couldn't say it had the most wireless subscriber additions for the quarter. That title now goes to AT&T (NYSE: T  ) , thanks to strong sales of the Apple (Nasdaq: AAPL  ) iPhone during the holidays. Still, Verizon Wireless was able to take advantage of Sprint Nextel's (NYSE: S  ) weakness and add 2 million net new wireless subscribers for the quarter. The company still trumps its competitors in low customer turnover, however, and again reported an industry-low 1.2% churn.

While investors might not be buying shares in droves, the company itself is willing to put more cash into its stock. Verizon bought $1.1 billion worth of shares in the quarter, and management noted that at current prices, it will continue to buy the stock. But based on the public's reaction, the market sees Verizon as fairly valued. At this point, I'd agree that Verizon is a great company with a stock that unfortunately doesn't present a similarly great opportunity.

For more telecom Foolishness:

Read/Post Comments (0) | Recommend This Article (3)

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: 564818, ~/Articles/ArticleHandler.aspx, 10/21/2016 6:09:53 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 Moments 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: ****
CMCSA $64.06 Down -0.29 -0.45%
Comcast CAPS Rating: ***
DTV.DL $0.00 Down +0.00 +0.00%
DirecTV 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: ****