Verizon Says Earnings Next Year May Be Flat

Verizon's earnings next year may plateau, the telecom giant said Thursday, as the company grapples with a wireless model change, a pending sale of operations to Frontier Communications Corp. and a ramp-up of new business models.

"While well-positioned for the future, Verizon's full-year 2016 earnings may plateau at 2015 levels," Chief Executive Lowell McAdam said. For 2015, analysts project adjusted earnings of $3.66 a share, up from $3.35 a year earlier. Analysts have predicted earnings of $3.64 for 2016.

Consumer demand is disrupting Verizon's traditional business models, Mr. McAdam said, adding that the company is transforming around the capabilities of its high-performing networks.

The company, which is talking at an investor conference Thursday, reiterated its capital allocation priorities that include network investment and returning to its pre-Vodafone credit rating profile by 2019. In 2013, Verizon and Vodafone agreed to a $130 billion merger, a deal that prompted credit rating agencies to cut Verizon's rating.

Earlier this year, Verizon struck a deal to sell a package of wireline assets to regional telecommunications company Frontier Communications for about $10 billion.

Write to Lisa Beilfuss at lisa.beilfuss@wsj.com

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(END) Dow Jones Newswires

September 17, 2015 10:15 ET (14:15 GMT)

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