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Strategies & Market Trends : Fundamental Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: E_K_S who wrote (2311)	9/13/2012 5:11:43 PM
From: bruwin	1 Recommendation Respond to of 4719

Looking at VZ's Annual Income Statements the one thing that would concern me is the fact that we see Top Line Revenue INCREASES but parallel DECREASES in both Pre-tax Income and Net Income :- Top Line Revenues (in $Mil.) :- 2007 = 93 469 2008 = 97 354 2009 = 107 808 2010 = 106 565 2011 = 110 875 Gross Operating Profit :- 2007 = 55 922 2008 = 58 347 2009 = 63 509 2010 = 62 416 2011 = 65 000 Pre-Tax Income :- 2007 = 14 545 2008 = 15 914 2009 = 11 568 2010 = 12 864 2011 = 10 483 Net Income :- 2007 = 5 521 2008 = 6 428 2009 = 3 651 2010 = 2 549 2011 = 2 404 Seems to me that the "Income trend reversal" is taking place AFTER the Gross Profit line in the Income Statement. There have been reasonable INCREASES in SG&A, Depreciation and Interest Expense. There was also very little Tax paid in 2011, e.g. $285mil. on $10 483mil. Had they paid a similar level of Tax as they did in 2010 of $2467mil., their Net Income for 2011 would have been close to zero. Hopefully the reports contained in the last 2 Quarters, plus what will come out in the following 2 Quarters, will contribute to an improved Annual for 2012.