Verizon Communicates Successful First Quarter Earnings

Verizon Communications VZ is up on Thursday after posting successful first quarter earnings. The Basking Ridge, New Jersey-based firm's EPS rose over 15 percent to $0.68 and topped expectations of $0.66. Revenue rose 4.2 percent year-over-year to $29.4 billion, but fell slightly short of the $29.56 billion Wall Street consensus. Healthy Fiber FiOS revenue soared 15.1 percent to $2.6 billion during the first quarter. Overall, the company experienced a net gain of 188,000 FiOS Internet customers for a total of 5.6 million, up 12 percent from Q1 2012. This more than offset a decline in DSL customers, giving the telecom giant a net gain of 99,000 broadband subscribers during the quarter for a total of 8.9 million. And, it added 169,000 FiOS Video customers for a total of 4.9 million, climbing 12.5 percent year-over-year. Cutting the Cord Verizon's wireless segment grew 6.8 percent to $19.5 billion. During the quarter, the nation's largest mobile phone service provider added 720,000 net retail connections. At the end of Q1, it had nearly 99 million subscribers, up 6.4 percent from Q1 2012. High-Maintenance Copper Digger Verizon indicated it is replacing high-maintenance portions of its residential copper network with fiber optics to provide enhanced services and reduce ongoing repair costs. The company migrated 83,000 homes from copper to fiber optics during the quarter and intends to complete a total of 300,000 such migrations by the end of 2013. Contract Boondoggle Coming to an End? For years, wireless service providers have standardized two-year contracts to the chagrin of many-a-customer. However, T-Mobile recently announced it'll do away with contracts, which has naturally pressured competitors, including Verizon, to do the same. According to TechSpot, Verizon CEO Lowell McAdam teased the idea of abandoning contracts during a recent company event. Also, a petition for such a move on Change.org has garnered over 85,000 supporters. If T-Mobile's plan ultimately succeeds, Verizon may be forced to scrap contracts or risk losing market share. It would be hard to imagine many would handcuff themselves for two years unless Verizon finds another way to sweeten the deal while keeping contracts in place. Earn Another $50,000 From Verizon Investors in Western Pennsylvania can earn another $50,000 from Verizon with a simple phone call. That's because on April 1, the company announced an offer of up to $50,000 for information leading to the arrest and prosecution of copper cable thieves in Lawrence and Washington Counties, Pennsylvania. According to the firm, more than 9,000 feet of copper cable has been stolen over a dozen incidents, leading to over $62,500 in damages. Anyone with information should call Verizon Security at 1-800-997-3287. Market Reaction Verizon embarked on a steady ascent from mid-January through early April and leveled off just over $50 before dipping close to $49.50 on Wednesday. However, its successful earnings have sent it to about $51 on Thursday in the early hours of trading. Verizon is up around three percent on Thursday.