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Verizon Q1 Results Top Estimates

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Verizon Communications Inc. (VZ) reported a profit for the first-quarter that increased 25.4 percent from last year, reflecting growth in wireless service revenue, wireless equipment revenue and total Fios Internet net additions. Quarterly operating revenues rose 4.0 percent from the prior year.

Both adjusted earnings per share and quarterly revenues topped analysts' expectations.

"The strength in our core business is driving higher revenues and strong demand for our products and services," said Verizon Chief Financial Officer Matt Ellis.

For 2021, Verizon expects adjusted earnings per share to be in the range of $5.00 to $5.15; service and other revenue growth of at least 2 percent, including total wireless service revenue growth of at least 3 percent. Analysts expect annual earnings of $5.08 per share.

Verizon reported that its first-quarter net income grew 25.4 percent to $5.38 billion from the previous year's $4.29 billion, with earnings per share improving to $1.27 from $1.00 in the prior year.

On an adjusted basis, earnings per share was $1.31, compared to $1.26 in the previous year. Analysts polled by Thomson Reuters expected the company to report earnings of $1.29 per share for the first-quarter. Analysts' estimates typically exclude special items.

Total consolidated operating revenues for the first-quarter 2021 were $32.87 billion, up 4.0 percent from last year's $31.61 billion reflecting the strength in Verizon's core business, and sets the stage for the company to fully capitalize on the opportunities in the marketplace. Analysts expected revenues of $32.46 billion for the first-quarter.

Total Verizon Consumer revenues were $22.8 billion, an increase of 4.7 percent year over year, primarily driven by higher phone activations.

In first-quarter 2021, Consumer segment reported 326,000 wireless retail postpaid net losses. It consisted of 225,000 phone net losses and 171,000 tablet net losses, offset by 70,000 other connected device net additions.

Consumer segment reported 98,000 Fios Internet net additions in first-quarter 2021, an increase from 59,000 Fios Internet net additions in first-quarter 2020. Total Fios Internet net additions in first-quarter 2021 were 102,000, the most first quarter total Fios Internet net additions since 2015.

Total Verizon Business revenues were $7.8 billion, up 1.3 percent year over year, the highest rate of growth since the company's new operating structure was introduced in 2019.

Business segment reported 156,000 wireless retail postpaid net additions in first-quarter 2021. It consisted of 47,000 phone net additions and 79,000 tablet net additions.

Total wireless service revenue was $16.7 billion, a 2.4 percent increase year over year. It reported 170,000 retail postpaid net losses, including 178,000 phone net losses.

Total Verizon Media revenues were $1.9 billion in first-quarter 2021, up about 10.4 percent year over year.

In Wednesday pre-market trading, VZ was trading at $58.25 down $0.14 or 0.24 percent.

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