There was good news in Verizon’s most recent numbers but an earlier acquisition and other factors played a role in the company having to report a loss for Q4.
EnterpriseMobileToday explains why, despite adding over a million new customers, Verizon plans to make significant layoffs.
Verizon Communications’ fourth-quarter 2009 sales were slightly better than expected, but the telecom giant on Tuesday wound up posting a loss due to expenses from its Alltel acquisition and weakness in certain markets.
Verizon (NYSE: VZ) reported revenue of $27.1 billion in the fourth quarter, up 9.9 percent from the fourth quarter of 2008. But on a pro forma basis, where Alltel’s Q408 revenue is added into the mix, year-over-year growth was just 0.2 percent.
Thanks to one-time layoff costs and other charges, the company posted a net loss of $653 million, or $0.23 earnings per share (EPS). If all of the one-time charges were taken out, net income would have been $3.3 billion, or EPS of $0.54, a slight drop from $3.4 billion in Q4 2008.
A consensus survey of analysts by Thomson Reuters projected EPS of $0.54 on sales of $27.3 billion.