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.
