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The only DOW component reporting earnings this morning is Verizon Communications (NYSE: VZ). The nation's largest wireless carrier reported second quarter numbers that fell inline with analyst estimates.Going into this morning's earnings report, analysts polled by Thompson Financial expected Verizon to earn 63 cents per share. Excluding merger and various one-time labor costs, Verizon was able to match that number.
The good news for Verizon is that the company is seeing rises in both revenues and subscribers. It has been able to add customers, but rising costs did result in a drop in net profit. Revenues for the quarter were up by 28% compared to the second quarter last year, but the company's profit was off by 7.2%.
Verizon has a total subscriber base of somewhere around 87.7 million. Last week the company announced that it had added 1.1 million new customers during its second quarter. This was slightly lower than the 1.4 million new customers for AT&T (NYSE: T), but impressive nonetheless.
Another good sign is that the company had an increase in its ARPU. The ARPU, which is the average revenue per user rose in the period to $75.29. This marks an increase of 13.7% compared to the same period last year. Its ARPU rose in part due to an increase in revenue from its broadband and video services.
Craig Moffett, who is a senior telecom analyst at Sanford C. Bernstein stated that this morning's numbers were very good for the company.
The stock declined slightly ahead of the bell. Friday the stock closed at $31.50 and it traded at $31.20 this morning in premarket trading at last check.
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