Verizon Earnings Hit By Unusual Expenses Including Storm And Strike

The company’s shares are down slightly in pre-market trading after it reported 4Q earnings that were somewhat lighter than analysts expected. The phone giant said that it ended the quarter with a $212M loss, down from a $4.6B profit in the period last year, on revenues of $28.4B, up 7.7%. The revenue increase was a company record, which Verizon attributes in part to the growing sales of smartphones and wireless data plans, and gains in FiOS subscriptions. Verizon had 4.2M video customers, up 194,000 in the quarter. But profits were hit by its subsidies for Apple iPhones, and several one-time expenses including a pension charge, and losses tied to the freak snowstorm that hit the Northeast in October and a strike by wireline workers. After adjusting for the unusual expenses, earnings came in at 52 cents a share, a penny light of expectations. With its recent investments in FiOS and 4G wireless transmissions, and a recent strategic alliance with cable operators including Comcast, CEO Lowell McAdam says that “Verizon has set the stage for accelerated growth across our business units, and we look to continue to build significant value for shareholders in 2012.”

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