NEW YORK (TheStreet) -- Verizon (VZ) fell 2.66% to $47.06 on Tuesday despite posting fourth-quarter net income of $5.07 billion, which beat analysts' expectations.
For the fourth quarter, Verizon reported revenue of $31.07 billion and earnings per share of 66 cents, both of which barely beat consensus analyst expectations. The largest cellphone carrier in the U.S. added 1.7 million net retail wireless connections in the fourth quarter, excluding acquisitions and adjustments. Of that figure, 1.6 million were connections that had monthly service contracts. The New York-based company also said that overall service revenue increased 8% to $17.7 billion.
News also broke Tuesday that Verizon would acquire Intel Media, a start-up business inside Intel (INTC) that had been working on an Internet-based television service. The exact dollar amount Verizon paid is unclear, but various media reports said that Intel had been seeking approximately $500 million. The Wall Street Journal reported last month that Verizon may pay less than $200 million.
TheStreet Ratings team rates VERIZON COMMUNICATIONS INC as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate VERIZON COMMUNICATIONS INC (VZ) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in net income, good cash flow from operations, expanding profit margins and growth in earnings per share. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."