Verizon Communications (NYSE: VZ) reported Q1 EPS of $1.31, $0.02 better than the analyst estimate of $1.29. Revenue for the quarter came in at $32.9 billion versus the consensus estimate of $32.47 billion.

Consolidated:

• $1.27 in earnings per share (EPS), compared with $1.00 in 1Q 2020; adjusted EPS (non-GAAP), excluding a special item, of $1.31, compared with $1.26 in 1Q 2020.
• Operating revenue increase of 4.0 percent from first-quarter 2020.
• Net income of $5.4 billion, an increase of 25.4 percent from first-quarter 2020, and adjusted EBITDA (non-GAAP) of $12.2 billion, an increase from $11.9 billion in first-quarter 2020.

“Verizon is off to an excellent start in 2021 as we met the challenge of intense competition in the first quarter by achieving revenue growth across our three business segments," said Verizon Chairman and CEO Hans Vestberg. “This year began with a transformative milestone for our company with our success in the recent C-Band spectrum auction. We continue to strengthen our networks, execute on our Network-as-a-Service strategy and focus on the five vectors that underpin our growth framework and position us to deliver success in 2021 and beyond.”

For first-quarter 2021, Verizon reported EPS of $1.27, compared with $1.00 in first-quarter 2020. On an adjusted basis (non-GAAP), first-quarter 2021 EPS, excluding a special item, was $1.31, compared with adjusted EPS of $1.26 in first-quarter 2020.

First-quarter 2021 EPS included a pre-tax loss from a special item of about $223 million related to the sale of certain wireless licenses. First-quarter 2021 EPS and adjusted EPS included a negative 3 cent impact from the company's recall of Ellipsis Jetpack units.

“The strength in our core business is driving higher revenues and strong demand for our products and services,” said Verizon Chief Financial Officer Matt Ellis. “We delivered strong operational and financial performance, giving us positive momentum as we end the first quarter. High quality, sustainable wireless service revenue growth, a recovery in wireless equipment revenues, strong Fios momentum and excellent Verizon Media trends led the way."

GUIDANCE:

Verizon Communications sees FY2021 EPS of $5.00-$5.15, versus the consensus of $5.08.

For 2021, Verizon expects the following:

• Service and other revenue growth of at least 2 percent, including total wireless service revenue growth of at least 3 percent.
• Adjusted EPS (non-GAAP) of $5.00 to $5.15.
• Adjusted effective income tax rate (non-GAAP) in the range of 23 percent to 25 percent.
• Capital spending to be in the range of $17.5 billion to $18.5 billion, including the further expansion of 5G mmWave in new and existing markets, the densification of the 4G LTE wireless network to manage future traffic demands and the continued deployment of the company's fiber infrastructure. Expenditures related to the deployment of the company’s C-Band 5G network will be in addition to this amount, and are expected to be approximately $10 billion over three years, with $2 billion to $3 billion expected in 2021.

For earnings history and earnings-related data on Verizon Communications (VZ) click here.