Verizon, Union Pacific And UnitedHealth Group Release Earnings
Telecom company Verizon Communications Inc. (NYSE: VZ) reported third-quarter earnings results prior to the opening of markets this morning. The company posted adjusted diluted quarterly earnings per share of $0.77 on revenues of $30.28 billion. In the same quarter in 2012, Verizon reported EPS of $0.64 on revenues of $29.01 billion. Verizon’s wireless segment generated $20.4 billion in second-quarter revenues, up 7.2 percent on a year-over-year basis. Wireless operating margin landed at 33.9 percent, which is up from 31.8 percent a year ago. Subscriber growth accounted for an 8.4 percent increase in service revenues, an 8.0 percent increase in retail service revenues, and 33.8 percent operating income margin, all on a year-over-year basis. Shares, which closed at $47.24 yesterday, are trading up this morning by over 2.5 percent on light volume.
Union Pacific Corporation (NYSE: UNP), who had reduced its earnings forecast earlier this month, posted earnings this morning that were in line with its prediction. Third-quarter profits rose roughly 10 percent on the back of higher shipping rates that helped offset the flooding in Colorado that disrupted rail traffic. The flooding cost the company $10 million in lost business and repairs. UNP says that revenue grew by 4 percent to $5.6 billion and that it had net income of $1.15 billion, or $2.48 per share. That’s up from $1.04 billion, or $2.19 per share during the same quarter last year. On another note, the railroad bought back 3.7 million shares reducing the number of shares outstanding by roughly 2 percent. Yesterday shares closed at $157.16 and dipped as low as $150.77 this morning on average volume.
UnitedHealth Group Inc. (NYSE: UNH) also posted third-quarter earnings this morning that were essentially flat in some areas but up in others. UNH raised the low end of its full year earnings guidance by $0.05 to a range of $5.40 to $5.50. Membership growth was up slightly from Q2 (89.7 million people compared with 89.2 million) and up significantly from the same quarter a year ago (77.6 million). The company reported a profit of $1.57 billion, or $1.53 a share, up from $1.56 billion, or $1.50 a share, a year earlier. Revenue rose 12 percent to $30.62 billion. Shares closed at $75.19 in yesterday’s trading and are down substantially this morning opening at $71.25 losing over 4 percent, but the stock is up over 39 percent this year.
Disclosure: The author has no position in the stocks mentioned in this article, and does not intend to initiate any position in the next 48 hours.
Become An Exclusive Member Of Wall Street Insanity