Verizon Communications 3Q Profit Weakens

By Micah Maidenberg

Verizon Communications Inc. reported weaker third-quarter sales and a smaller profit, in part due to a drop in revenue tied to wireless equipment.

Verizon on Wednesday said profit fell to $4.5 billion, or $1.05 a share, from $5.34 billion, or $1.25 a share, for the year-earlier period.

Selling, general and administrative expenses rose 1.7% year over year, while Verizon's cost of services were up 0.7%.

In its consumer business, Verizon said it saw a significant decrease in revenue tied to wireless equipment due to reduced customer activity. Total consumer revenues were down 4.3%.

It estimated that the Covid-19 pandemic sliced out 5 cents from its earnings per share.

The company reported an adjusted profit of $1.25 a share, or 3 cents ahead of what analysts had been looking for on that metric.

Total revenue dropped 4.1%, to $31.54 billion. Analysts polled by FactSet had predicted $31.59 billion for the latest period.

The company reported it added 283,000 postpaid phone connections for the quarter on a net basis.

Write to Micah Maidenberg at [e-mail]

(END) Dow Jones Newswires

October 21, 2020 08:09 ET (12:09 GMT)

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