Verizon Takes a Q4 Hit

by Tom Taulli | January 22, 2013 11:09 am

Verizon Takes a Q4 Hit

VerizonPromo1 Verizon Takes a Q4 Hit[1]Verizon (NYSE:VZ[2]) announced this morning that it widened its losses in the fourth quarter[3].

VZ posted earnings of $4.23 billion, or $1.48 a share, which was much lower than loss of $2.02 billion, or 71 cents a share, in the same period a year ago. The company did make a profit — of 38 cents per share — after some one-time adjustments, but that still fell short of views for 50 cents.

The company blamed the results on a variety of factors, including the impact of Hurricane Sandy, charges for pension liabilities and discounts on smartphones, such as for Apple (NASDAQ:AAPL[4]) devices.

Despite all this, Verizon still showed traction with its mobile business. In Q4, the company added 2.1 million subscribers for a customer base of about 98.2 million, and also upped the pricing on data plans by about 6.6%.

The momentum was certainly a nice boost to revenues, which increased by nearly 6% to $30 billion, edging a consensus estimate was for $29.8 billion.

Tom Taulli runs the InvestorPlace blog IPO Playbook[5], a site dedicated to the hottest news and rumors about initial public offerings. He is also the author of “How to Create the Next Facebook[6]” and “High-Profit IPO Strategies: Finding Breakout IPOs for Investors and Traders[7].” Follow him on Twitter at @ttaulli[8]. As of this writing, he did not hold a position in any of the aforementioned securities.

Endnotes:
  1. [Image]: http://investorplace.com/wp-content/uploads/2012/06/VerizonPromo1.jpg
  2. VZ: http://studio-5.financialcontent.com/investplace/quote?Symbol=VZ
  3. widened its losses in the fourth quarter: http://online.wsj.com/article/SB10001424127887323485704578257393880660184.html
  4. AAPL: http://studio-5.financialcontent.com/investplace/quote?Symbol=AAPL
  5. IPO Playbook: http://investorplace.com/ipo-playbook/
  6. How to Create the Next Facebook: http://www.amazon.com/gp/product/1430246472/ref=s9_simh_gw_p14_d0_i1?pf_rd_m=ATVPDKIKX0DER&pf_rd_s=center-3&pf_rd_r=0GRB6ZMCTYDZVNG7Q7NV&pf_rd_t=101&pf_rd_p=470938811&pf_rd_i=507846
  7. High-Profit IPO Strategies: Finding Breakout IPOs for Investors and Traders: http://goo.gl/pR2F3
  8. @ttaulli: https://twitter.com/ttaulli

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