Verizon Q1 Profit Beats Expectations

posted better-than-expected earnings for its first quarter The New York-based company posted quarterly earnings of $4.34 billion, or $1.02 per share, versus $5.99 billion, or $1.15 per share, in the year-ago period. Its revenue climbed 3.8 percent to $32 billion. However, analysts were expecting earnings of $0.95 per share on revenue of $32.27 billion. In the quarter, Verizon added 565,000 net retail postpaid connections, a 4.8 percent rise versus the year-ago period. It added 90,000 net new FiOS Video connections in the quarter, compared to 57,000 a year ago. Verizon added 133,000 net new FiOS Internet connections, a 35.7 percent rise versus the year-ago period. Consolidated operating income margin widened to 24.9 percent in first-quarter, from 23.2 percent in the year-ago quarter. Cash flow from operating activities rose to $10.2 billion from $7.1 billion. For the quarter, postpaid churn shrank to 1.03 percent from 1.07 percent. "Verizon is off to a strong start in 2015 with another quarter of profitable growth," said Verizon Chairman and CEO Lowell McAdam. "We expanded our base of customers seeking a premium experience, and we grew revenues, earnings and cash flow during a quarter in which we also took significant steps to sharpen our strategic focus. We are confident in our ability to maintain momentum and continue to add value for customers and shareholders." The average estimate among 24 Estimize users was for earnings of $0.95 per share and revenue of $32.36 billion. Verizon shares gained 0.22 percent to $49.49 in pre-market trading.