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Thinkpad (AXcess News) Houston, TX - Verizon Communications, Inc. (NYSE: VZ) reported a 7.1 percent drop in earnings for the first-quarter, feeling the effects of huge costs related to its push into broader home markets with high-speed fiber optic cable installation.
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Microsoft Verizon reported $1.632 billion in earnings for the first-quarter, or 56 cents per share, compared to $1.757 billion, or 63 cents per share, for the same period last year.
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Laptop Computers Verizon reported that costs related to a 15-state fiber-optic build out cut into earnings by 6 cents per share.
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Laptop Computer The nation's No. 1 telecommunications company also incurred costs related to its merger with MCI, which when removed from the results gave Verizon 60 cents per share in earnings. That figure came in 1 penny above where Wall Street had estimated that it would, prompting investors to lift the telco's shares Tuesday morning.
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Desktop Computer Verizon's revenue for the period was up 25 percent at $22.7 billion, compared to $18.2 billion in the first-quarter last year, reflecting the combination of MCI's revenue with that of Verizon's.
Notebooks Verizon Wireless also showed improved customer gains, which could affect New York-based Verizon Communications ability to buy its joint venture partner in the Wireless company. Verizon Communications has made a bid to buy Vodafone Group Plc (NYSE: VOD), its joint venture partner in Verizon Wireless.
Lenovo Verizon Wireless added 1.7 million customers in the quarter for a total of 53 million customers, just behind Cingular Wireless LLC with 55.8 million.
Hard Drive Revenue in Verizon Wireless was reported to be $8.8 billion, up 19 percent from a year ago.
Travelstar Verizon's wireline revenue grew 33 percent to $12.5 billion, thanks to the acquisition of MCI, which serves large corporate customers.
Gateway Verizon's build out of fiber-optic lines in 15-states is starting to pay off, the company said, with 3.6 million homes nowable to access its FiOS fiber-optic service. The company said that in areas where it has been available for a year, 17 percent are signed up for broadband. Verizon also started selling video over FiOS, competing with cable companies, in areas where it has been able to secure local video franchises. But the company did not release subscriber numbers, though it indicated that results were "encouraging", suggesting that while the service did show growth, it might be below what Verizon really had expected to see.
Laptop Parts Shares of Verizon were up 30 cents, or 0.91%, at $33.09, after reaching a high of $33.23 shortly after the opening bell when Verizon announced its earnings results.
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