Report: Verizon's FiOS, wireless will drive up Q1 EPS by 11.8 percent

Verizon (NYSE: VZ), according to financial analyst estimates, is expected to report that Q1 2013 earnings per share will rise 11.8 percent on strong wireless and FiOS services revenues.

The telco will report its earnings before the opening bell rings on Wall Street tomorrow at 8 a.m. ET.

A recent Thomson Reuters poll of financial analysts estimated that Verizon will report Q1 earnings tomorrow of 66 cents per share, up from 59 cents per share in Q1 2012 and that revenue grew 4.6 percent to $29.5 billion.

Two of the key challenges that will affect Verizon's Q1 report will be expected declines in traditional voice services and a slight decline in business service revenues due to economic pressures in the United States and in Europe.

Given the ongoing decline of wireline-based voice services, Colby Synesael, an analyst with the Cowen Group, said that wireline margins will face pressure from "union costs, payroll taxes, content costs and Redbox (online video) launch costs."

In Q4 2012, FiOS was one of the biggest contributors to the telco's wireline growth.

Although it is now focusing on growing out FiOS in existing markets and transferring problem copper-based customers to Fiber to the Home (FTTH), the telco added 144,000 net new FiOS Internet connections and 134,000 net new FiOS Video connections during that quarter.

For more:
- Investors Business Daily has this article

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