Verizon Communications Inc. VZ reported lower-than-expected earnings for its fourth quarter as competitive pressures from T-Mobile US Inc TMUS and Sprint Corp S have weighed on wireless revenues.
- Verizon Reports Q4 EPS $0.86 vs. Est. $0.89, Rev. $32.3B vs. Est. $32.08B
- Verizon Sees FY17 Adj. EPS Trends To Be Similar To Consolidated Rev. Trends, Fairly Consistent To 2016 Numbers With Improvement In Wireless and Equipment Rev.
Total consolidated operating revenues fell 5.6 percent to $32.3 billion. Wireless revenues fell 1.5 percent to $23.4 billion despite Verizon adding 591,000 retail postpaid net additions in the quarter. At year-end 2016, Verizon retail connections rose 1.9 percent to 114.2 million.
Retail postpaid churn was 1.10 percent in fourth-quarter 2016, a year-over-year increase of 14 basis points. The company said about 67 percent of postpaid phone customers were on a non-subsidized service pricing plan.
Total wireline revenues also decreased 3.1 percent to $7.8 billion. However, total Fios revenues grew 4.4 percent to $2.9 billion as it added a net of 68,000 Fios Internet connections and 21,000 Fios Video connections.
The carrier set out a capital spending target of $16.8 billion to $17.5 billion in 2017 and expects its acquisition of XO Communications to close in first-quarter 2017 and its sale of data centers to Equinix to close in second-quarter 2017.
In the pre-market hours, the stock is down 2 percent to $51.35.
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