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Verizon Q3 Profit Tops Estimates; Raises 2021 Guidance

verizon oct23 20oct21 lt

Verizon Communications Inc. (VZ) said, on an adjusted basis, its third-quarter earnings per share rose 12.8 percent from a year ago. The company said its earnings were highlighted by revenue and customer growth as more than one in four Consumer wireless phone customers now have a 5G-capable device. The company delivered 699,000 retail postpaid net additions, including 429,000 phone net additions, resulting in 122.0 million total retail connections. Third-quarter phone net additions increased 51.6 percent year over year. Excluding Verizon Media, third-quarter total consolidated operating revenues increased 5.5 percent. Total wireless service revenue was up 3.9 percent, driven by higher access revenue, volume growth and products.

Looking forward, Verizon increased its 2021 earnings guidance. The company now projects total wireless service revenue growth of around 4 percent. This update is at the higher end of the prior guidance of 3.5 percent to 4 percent.

On an adjusted basis, third-quarter earnings per share, excluding special items, was $1.41, compared to adjusted EPS of $1.25, last year. On average, 22 analysts polled by Thomson Reuters expected the company to report profit per share of $1.36, for the quarter. Analysts' estimates typically exclude special items. Adjusted EBITDA was $12.3 billion, an increase of 3.3 percent. Net income was $6.6 billion, an increase of 45.5 percent from previous year. Earnings per share was $1.55 compared to $1.05.

Total consolidated operating revenues were $32.9 billion, up 4.3 percent from previous year. These results included two months of Verizon Media revenue of approximately $1.4 billion on a segment basis. Analysts expected revenue of $33.2 billion, for the quarter. Total wireless service revenue was $17.1 billion, up 3.9 percent.

Total Verizon Consumer revenues were $23.3 billion, an increase of 7.3 percent year over year. The company said this increase was primarily driven by strong demand for connectivity and products. Consumer wireless service revenues were $14.0 billion, up 4.0 percent.

Total Verizon Business revenues were $7.7 billion, down 0.8 percent from last year. Business wireless service revenues were $3.1 billion, a 3.6 percent increase from a year ago.

For full year 2021, the company now expects adjusted earnings per share of $5.35 to $5.40, an update from prior guidance of $5.25 to $5.35. Analysts polled by Thomson Reuters expect the company to report profit per share of $5.31.

Verizon CEO Hans Vestberg said: "Our disciplined strategy execution demonstrated growth in 5G adoption, broadband subscribers and business applications."

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