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Verizon 1Q15 Revenue: Lower Than Wall Street Estimated

Verizon 1Q15 Results Beat Earnings Expectations (Part 1 of 5)

Verizon 1Q15 revenue

Verizon (VZ) reported its results for 1Q15 on April 21, 2015. In this series, we’ll analyze the quarterly performance of the telecom company’s wireless and wireline segments.

Verizon 1Q15 revenue grew ~3.8% year-over-year to ~$32 billion. The telecom company’s consolidated revenue in the quarter was ~0.9% lower than expected by Wall Street analysts. Verizon’s stock price fell marginally by ~0.4% on April 21, 2015. In 4Q14, Verizon did beat Wall Street revenue estimates by ~1.5%.

Wireline segment continues to dampen Verizon’s revenue growth

Verizon’s wireless segment revenue increased by ~6.9% year-over-year to ~$22.3 billion in 1Q15. However, the wireline segment’s revenue continued its declining trend during the quarter. Wireline revenue fell by ~2% year-over-year to ~$9.5 billion in 1Q15. The segment’s revenue also fell year-over-year in 4Q14.

Wireline telecoms including Verizon, AT&T (T), CenturyLink (CTL), and Windstream (WIN) continue to face challenges and declining revenues stemming from voice and other legacy services. Later in this series, we’ll discuss detailed results of Verizon’s individual wireless and wireline segments.

About Verizon

Verizon is the largest US telecom company. It had a market capitalization of ~$200.6 billion as of April 21, 2015. AT&T (T) is the second-largest telecom company. It had a market capitalization of ~$169.5 billion on the same date.

Like Verizon, AT&T operates in both wireless and wireline segments. Verizon has the largest US wireless operation. AT&T has the second-largest. AT&T has the largest wireline telecommunication operations in the US. Verizon has the second-largest. Nevertheless, wireless is the biggest segment for both telecommunications companies.

If you want to get diversified exposure to Verizon, you can invest in the Sector SPDR Trust SBI Interest ETF (XLK). The ETF held ~5% in the telecom company on March 31, 2015. You can get more diversified exposure to Verizon by investing in the iShares Core S&P 500 ETF Trust (IVV). IVV held ~1.1% in the company on the same date.

Continue to Part 2

Browse this series on Market Realist:

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