Can Verizon keep it up?

Verizon Communications Inc. (NYSE: VZ) today reported better-than-expected second quarter results, fueled by growth in its wireless and FioS TV and Internet customers.

Net income rose 12% to $1.88 billion, or 66 cents a share, from $1.68 billion, or 58 cents, a year earlier, according to the New York-based company. Sales rose 3.7% to $24.1 billion. Excluding one-time costs, profit was 67 cents, two cents ahead of the 65-cents expected by analysts surveyed by Bloomberg News. Sales were slightly below the $24.2 billion Bloomberg estimate.

"Our second quarter results were on track with our business plan, and top- and bottom-line growth remained solid," said Chief Executive Officer Ivan Seidenberg in the earnings press release. "We remain focused on steady improvements in revenue growth and productivity that will increase profitability and cash flows and create future opportunities to enhance shareholder returns."

Among the highlights:

• 1.5 million net customer additions for the wireless business;
• Wireless churn of 1.12%, 0.83% retail post-paid churn;
• 11.8 percent increase in total revenues; data revenues up 45.3%
• 176,000 net new FiOS TV customers and 187,000 net new FiOS Internet customers

Going forward, it will be interesting to see if consumers, who are already stretched thin, begin holding off on ordering FiOS even if the service is superior to cable. Also, will stressed consumers quit the service because they are worried about more pressing needs like their mortgage?