Telecommunications giant Verizon (NYSE:VZ, news, filings) reported its first quarter 2012 earnings this morning, coming in slightly stronger than expected overall. Revenues of $28.24B were slightly ahead of expectations, while earnings per share of $0.59 beat composite analyst projections by a penny. The market is pleased thus far, with the stock up about $0.50 in the pre-market.
Wireless subscribers, EBITDA margins and revenues all grew, while smartphones surged to 47% of postpaid phones. Yet ironically it was slower iPhone sales that helped out on the bottom line, since those subsidies do take their toll.
For wireline, FIOS penetration rose to 36.4%, while global wholesale took its usual revenue hit as legacy revenues churn off, and global enterprise revenues climbed a bit. Verizon built out 100G on a few more routes, both in the US and Europe, and talked up its piece of the new EIG cable in the Middle East. They also have a PR out this morning with Orange Business Services detailing new levels of telepresence interoperability.
Overall, there was little new in the company's story. Of course, nothing new is a good thing when you're generating $6.0B in operating cash flow and $3.9B in earnings. And for the sector as a whole, there don't seem to be any negative implications as to the overall economic environment - which hopefully will mean that the equipment sector won't be so jittery this quarter.Financials · ILECs, PTTs · Wireless