The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Verizon Communications met expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue expanded and GAAP loss per share expanded.
Margins shrank across the board.
Verizon Communications booked revenue of $30.05 billion. The 29 analysts polled by S&P Capital IQ anticipated sales of $29.78 billion on the same basis. GAAP reported sales were 5.7% higher than the prior-year quarter's $28.44 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 $0.38. The 34 earnings estimates compiled by S&P Capital IQ averaged $0.50 per share. GAAP EPS were -$1.48 for Q4 against -$0.71 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 56.5%, 100 basis points worse than the prior-year quarter. Operating margin was -10.5%, 660 basis points worse than the prior-year quarter. Net margin was -14.1%, 700 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $29.55 billion. On the bottom line, the average EPS estimate is $0.66.
Next year's average estimate for revenue is $120.32 billion. The average EPS estimate is $2.82.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 4,622 members out of 4,904 rating the stock outperform, and 282 members rating it underperform. Among 1,080 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 1,028 give Verizon Communications a green thumbs-up, and 52 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 $47.02.
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