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What to Expect from Verizon’s Q4 Wireless Service Revenues

Andrew Smith
What to Expect from Verizon’s Q4 Wireless Service Revenues

What to Expect from Verizon's Q4 Earnings(Continued from Prior Part)## Verizon’s wireless service revenueIn this article, let’s take a look at the two most significant components of Verizon’s (VZ) wireless revenue. The larger part is the company’s wireless service revenue, while the smaller part is its wireless equipment revenue. Wall Street analysts predict Verizon’s wireless service revenue to rise ~1.3% YoY to reach $16.1 billion in the fourth quarter.In the third quarter, Verizon generated wireless service revenue of $16 billion, which was up ~0.8% YoY. However, excluding the impact of the new revenue recognition accounting standard, the company reported wireless service revenue of $16.2 billion in the third quarter, which was up ~2.6% YoY.As of September 30, nearly 83% of Verizon’s postpaid phone customers were on unsubsidized pricing plans compared to 78% in the year-ago quarter. The increase in penetration of unsubsidized plans has helped the wireless carrier return to service revenue growth.## Peer comparisonIn comparison, AT&T’s (T) combined domestic wireless operations service revenue is expected to decline ~1.9% YoY to $14 billion in the quarter ended December 31, while T-Mobile’s (TMUS) wireless service revenue is expected to rise ~5.7% YoY to $8.2 billion. Sprint’s (S) service revenue from its wireless component is expected to decline ~2.2% YoY to reach $5.5 billion in the same period.Continue to Next PartBrowse this series on Market Realist: * Part 1 - What Do Analysts Expect from Verizon’s Q4 Earnings? * Part 2 - What Analysts Expect from Verizon’s Q4 Revenue * Part 3 - How Much EBITDA Growth Will Verizon Record in Q4 2018?