Wireless Strength Boost To Verizon Net
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Verizon Communications posted a 3% increase in third-quarter net income on the strength of its wireless business.
The wireline business, however, continues to face margin pressure on increased spending for its fiber network upgrade project, FiOS. Expectations were high for Verizon, whose stock hit a 52-week high of $38.91 Friday. Shares recently fell $1.35,or 3.5%,to $37.48 on the New York Stock Exchange.
“We believe that expectations had increased over recent days following the strong results at Cingular and the incrementally positive comments from BellSouth and AT&T regarding wireline operating trends,” a Merrill Lynch & Co. analyst, David Janazzo, said.
The New York telephone company reported net income of $1.92 billion, or 66 cents a share. A year ago, it posted a profit of $1.87 billion, while per-share earnings were 67 cents as a result of a lower share count.
Excluding charges related to pension settlement, the relocation of Verizon Center, and the integration of MCI Inc., earnings came in at 68 cents a share.
Revenue rose 26% in the latest three months to $23.25 billion from $18.49 billion a year earlier.
