Verizon: posts lower quarterly profit, sees 'headwinds'
(CercleFinance.com) - Verizon said that it has begun 2020 with "strong" operational performance, even though its revenue and profit fell in the first three months of the year.
For the first quarter to 31 March, Verizon reported EPS of 1 dollar, down from 1.22 dollar in the first quarter of 2019.
On an adjusted basis (non-GAAP) - which means excluding special items - EPS was 1.26 dollar, compared with EPS of 1.20 dollar in the first quarter of 2019.
Verizon said this number included a negative impact of approximately 4 cents due to the impact of Covid-19, primarily driven by an increasese of its bad debt reserve.
Total operating revenues were 31.6 billion dollars, down 1.6% year-on-year, after social distancing measures limited in-store trafic, the group said.
Seeing "significant headwinds" through the second quarter, the company said it now expects adjusted EPS growth (non-GAAP) of -2% to 2% over the quarter, from a previous guidance of 2% to 4%.
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