The 10-second takeaway
For the quarter ended June 30 (Q2), Verizon Communications met expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue increased. Non-GAAP earnings per share increased. GAAP earnings per share increased significantly.
Margins grew across the board.
Verizon Communications booked revenue of $29.79 billion. The 26 analysts polled by S&P Capital IQ expected revenue of $29.83 billion on the same basis. GAAP reported sales were the same as the prior-year quarter's.
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 $0.73. The 29 earnings estimates compiled by S&P Capital IQ averaged $0.72 per share. Non-GAAP EPS of $0.73 for Q2 were 14% higher than the prior-year quarter's $0.64 per share. GAAP EPS of $0.78 for Q2 were 22% higher than the prior-year quarter's $0.64 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 63.0%, 120 basis points better than the prior-year quarter. Operating margin was 22.0%, 220 basis points better than the prior-year quarter. Net margin was 7.5%, 110 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $30.19 billion. On the bottom line, the average EPS estimate is $0.75.
Next year's average estimate for revenue is $120.57 billion. The average EPS estimate is $2.79.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 4,624 members out of 4,930 rating the stock outperform, and 306 members rating it underperform. Among 1,071 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 1,028 give Verizon Communications a green thumbs-up, and 43 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 $53.55.
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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 position in any of the stocks mentioned. 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.