Verizon's Q3 results were a bit mixed. The telecommunications giant posted revenues of $30.94B during the quarter and down 6.7% over the same period last year. Analysts had been looking for something more like $31.14B. But on the other hand, adjusted net income of $1.01 per share was a couple pennies higher than anticipated. Verizon's stock is down some in response, but it's early yet so who knows.
In the wireless business, Verizon added 442,000 retail postpaid subscribers, but analysts had something north of 750,000 in mind. Churn among those customers ticked upward to 1.04% during the quarter, which probably didn't help. Meanwhile, on the wireline front it was the usual story of FIOS growth opposite declines in wholesale and enterprise sales. Wireline revenues continued to tick downward, but operating income and margins were up over last year.
The larger question on the table right now, of course, is just what will come of Verizon's hesitation over at Yahoo. They have been quite vocal about their displeasure with Yahoo's disclosure of that major security breech, and have been talking about an adjustment to the purchase price. Some have even suggested they might pull out of the deal entirely, although I suspect that might be a bit overly melodramatic. They didn't say anything about it in the release, but you know it will be a topic in the conference call. For its part, Yahoo's earnings earlier this week were somewhat better than expected.Financials · ILECs, PTTs · Wireless