Verizon Sees 2020 Earnings up 2%-4% Amid High Investment Costs

Investing.com – Verizon (NYSE:) said it expects underlying earnings this year to grow by between 2% and 4%, as the company plows the revenue from a growing user base back into upgrading its mobile and fiber networks.

The company reported earnings per share of $1.13 for the fourth quarter, just shy of consensus estimates for $1.14, on revenue of $34.78 billion, a figure boosted by the highest net growth in wireless subscribers in six years. The figures were still only flat compared to last year, due to impairments of $2.8 billion that weren’t quite offset by a $2.2 billion tax benefit from asset disposals.

Verizon (NYSE:) said it gained a net 1.2 million retail customers in the quarter, including 790,000 phone net additions, the highest fourth-quarter phone net additions in six years. The 969,000 net increase in postpaid smartphone subscribers was up 11% on the year.

Verizon (NYSE:) said it gained a net 1.2 million retail customers in the quarter, including 790,000 phone net additions, the highest fourth-quarter phone net additions in six years. The 969,000 net increase in postpaid smartphone subscribers was up 11% on the year.

“We entered 2020 with great momentum,” chairman and chief executive Hans Vestberg said in the accompanying release.

Analysts are forecasting EPS of $1.24 and revenue of $32.73 billion in the next quarter.

The company, meanwhile, said it expects “low-to-mid single-digit percentage growth” in consolidated revenues for the full year, while capital spending – dominated by the roll-out of 5G networks – is expected to be between $17 and $18 billion.

“We entered 2020 with great momentum,” chairman and chief executive Hans Vestberg said in the accompanying release.

Verizon share’s are down 3.05% from the beginning of the year , still down 4.32% from its 52 week high of $62.22 set on December 20, 2019.

Verizon follows other major Services sector earnings this month

On Wednesday, AT&T reported fourth quarter EPS of $0.89 on revenue of $46.82B, compared with a forecasts for EPS of $0.88 on revenue of $46.95B.

Comcast earnings beat analysts’ expectations on January 23, with fourth quarter EPS of $0.79 on revenue of $28.4B. Investing.com analysts anticipated EPS of $0.77 on revenue of $28.17B

Stay up-to-date on all of the upcoming earnings reports by visiting Investing.com’s earnings calendar

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