Verizon Communications Inc. (VZ – Analyst Report) reported strong financial numbers in the third quarter of 2015. Both the top and the bottom line surpassed the respective Zacks Consensus Estimate.
Verizon reported adjusted earnings per share of $1.04, beating the Zacks Consensus Estimate of $1.02. Quarterly net income came in at $4,171 million compared with $3,794 million in the year-ago quarter.
Verizon Communications Inc. – Earnings Surprise | FindTheBest
Quarterly total revenue increased 5% year over year to $33,158 million outpacing the Zacks Consensus Estimate of $33,003 million.
Total operating expenses in the reported quarter was $25,623 million, up 3.8% year over year. Meanwhile, operating income stood at $7,535 million compared with $6,890 million in the year-ago quarter.
Cash Flow & Liquidity
During the first nine months of 2015, Verizon generated $28,426 million of cash from operations compared with $23,157 million in the first nine months of 2014. Free cash flow at the end of the reported period was $15,886 million compared with $10,533 million in the year-ago period.
At the end of third-quarter 2015, Verizon had $4,181 million of cash and short-term investments and $112,324 million of long-term debt compared with $11,153 million of cash and short-term investments and $110,536 million of debt outstanding at the end of 2014. The debt-to-capitalization ratio was 0.88 at the end of the reported quarter compared with 0.89 at the end of 2014.
Wireless Segment
Total revenue at the segment was $23,005 million, up 5.4% year over year. Service revenues were down 4.1% to $17,598 million. Other revenues totaled $1,115 million, up 11.6%. Equipment revenues increased 73.1% to $4,292 million.
Operating expenses increased 3.1% to $15,337 million. Operating income improved 10.3% to $7,668 million. Quarterly operating income margin stood at 33.3% in comparison with 31.9% in the third quarter of 2014. Segment EBITDA increased 9.2% to $9,928 million. EBITDA margin was 43.2% compared with 41.6% in the prior-year quarter.
