This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
See Cramer's multi-million dollar portfolio for FREE and get his new book Get Rich Carefully! Learn More

Verizon Boosts 2011 Goals on iPhone

NEW YORK (TheStreet) -- Verizon (VZ) raised growth targets for profits and sales driven largely by wireless and the Apple (AAPL) iPhone.

Verizon says sales growth will more than double in 2011. Addressing analysts and investors at a special earnings presentation on Wall Street Tuesday, Verizon executives said revenue will grow in the range of 4% to 8% this year, driven by an estimated 11 million Apple iPhone sales.

The high cost of subsidizing the iPhone will cut into Verizon's profit, but the company says earnings will grow between 5% to 8% in 2011. And assuming the 11 million iPhone sales this year, Verizon says the profit growth rate could hit 10% to 16% next year.

The boost in guidance sent Verizon shares up 2% to $36.05

"We believe our brand and network will drive a lot of people," CEO Ivan Seidenberg told analysts, referring to the potential pull of customers to the Verizon iPhone .

Seidenberg, answering a question about his succession plan, said that COO Lowell McAdam "will be CEO by the end of the year."

The move makes the widely expected appointment of McAdam official. McAdam has been instrumental in making Verizon less rigid with partners and can be credited with bringing Google (GOOG) and Apple into the company's product plans.

The executives said they have trained 3,000 workers on iPhone sales and the company has dropped its policy of offering a new phone upgrade every two years for new subscribers. Verizon also reduced the return period for phones to 14 days from one month.

Verizon posted weaker-than-expected fourth-quarter earnings and sales earlier Tuesday.

The New York telco posted an adjusted profit of 54 cents a share, down from the 59 cents in the prior quarter and flat with year-ago levels. Analysts had expected a pro forma profit of 55 cents a share, according to Yahoo! Finance.

Sales for the fourth quarter were $26.4 billion, down from the $27.2 billion level in the third quarter and 2% below the $27.1 billion mark in the year-ago period. Analysts had expected revenue of $26.48 billion.

With so much attention focused on the upcoming CDMA iPhone, wireless growth was muted in the fourth quarter. Verizon added 872,000 new retail postpaid customers in the quarter, down from the 1 million new customers it added in the third quarter. Verizon says it now has 94.1 million wireless customers.

The Verizon iPhone sales launch is Feb. 10.

Even though there was a pre-iPhone drag on the wireless performance, Verizon managed to increase its average revenue per user, or ARPU to $53.50, a 2.5% bump up from the year-ago number. Data ARPU grew to $19.97 a month, a 19% increase fueled by higher smartphone sales.

--Written by Scott Moritz in New York.



>To contact this writer, click here: Scott Moritz, or email: scott.moritz@thestreet.com.

To follow Scott on Twitter, go to http://twitter.com/MoritzDispatch.

>To send a tip, email: tips@thestreet.com.

Stock quotes in this article: AAPL, VZ, T 

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
DOW 16,408.54 -16.31 -0.10%
S&P 500 1,864.85 +2.54 0.14%
NASDAQ 4,095.5160 +9.2910 0.23%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs