For the full year, Verizon reported adjusted EPS of $2.24 on revenues of $115.85 billion, compared with EPS of $2.15 in 2011 on revenues of $110.88 billion. The consensus estimates called for EPS of $2.38 on revenues of $115.57 billion.
On a GAAP basis, the company reported a quarterly loss of $1.48 per share compared with a loss of $0.71 per share in the fourth quarter of 2011. The loss was attributed to noncash pension charges, nonoperational debt retirement, restructuring and the effects of Hurricane Sandy.
The company’s CEO said:
We delivered a total return of 13.2 percent to shareholders in 2012, and we enter 2013 ready to accelerate the momentum we’ve achieved and create significant shareholder value in the years to come.
Verizon Wireless, a joint venture with Vodafone PLC (NASDAQ: VOD), generated $20 billion in fourth-quarter revenues, up 9.5% year-over-year. Postpaid average revenue per account (ARPA) rose 6.6% to $146.80. Wireless operating margin came in at 24%, up slightly from 23.7% a year ago.
The number of retail postpaid customers grew by 2.1 million in the quarter, bringing Verizon’s total number of retail connections to 98.2 million.
In the wireline business, revenues declined 1.5% to $10 billion in the fourth quarter, with most of the growth coming from the company’s FiOS service. Operating margins in the wireline business were 1% in the quarter.
Verizon did not offer any guidance, but the consensus estimates for the first quarter of 2013 call for EPS of $0.66 on revenues of $29.56 billion. For the full year, estimated EPS totals $2.81 on revenues of $120.24 billion
Shares are down about 1.4% at $41.93 in premarket trading this morning in a 52-week range of $36.80 to $48.77. Prior to today’s release Thomson/Reuters had a consensus price target of around $46.30 on the company’s shares.
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