The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Verizon Communications met expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded and GAAP earnings per share expanded.
Margins grew across the board.
Verizon Communications recorded revenue of $29.01 billion. The 28 analysts polled by S&P Capital IQ anticipated revenue of $28.98 billion on the same basis. GAAP reported sales were 3.9% higher than the prior-year quarter's $27.91 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.64. The 33 earnings estimates compiled by S&P Capital IQ predicted $0.64 per share. GAAP EPS of $0.56 for Q3 were 14% higher than the prior-year quarter's $0.49 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 62.1%, 290 basis points better than the prior-year quarter. Operating margin was 18.9%, 230 basis points better than the prior-year quarter. Net margin was 5.5%, 60 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $29.61 billion. On the bottom line, the average EPS estimate is $0.59.
Next year's average estimate for revenue is $115.36 billion. The average EPS estimate is $2.47.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 4,605 members out of 4,891 rating the stock outperform, and 286 members rating it underperform. Among 1,086 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 1,036 give Verizon Communications a green thumbs-up, and 50 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Verizon Communications is outperform, with an average price target of $44.64.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.