Verizon beats Street with third quarter earnings

Verizon narrowly beat Wall Street forecasts for revenue and earnings in the third quarter, as the telecom giant experienced "quality connections growth" during the period.

The company reported Tuesday adjusted earnings per share of $1.04, squeaking past analyst forecasts of $1.02. Verizon also reported third quarter revenue of $33.2 billion, beating forecasts of $32.94 billion.

Shares of Verizon were up 1.5% in morning trading.

During the third quarter, Verizon added 1.3 million postpaid subscribers, up from the last quarter. The company's FiOS services continue to drive revenue, representing 79% of their consumer revenues. Total revenues generated by FiOS were up 7.5% compared to last year, while adding 114,000 FiOS Internet subscribers and 42,000 FiOS Video subscribers.

"Verizon continues to grow earnings by delivering network reliability and superior value that continues to attract new customers," said Verizon Chairman and CEO Lowell McAdam in a statement.

Verizon has already laid out its roadmap for its "5G" network, with field tests starting in 2016. However, 5G networks wouldn't be available to consumers until at least 2020.

Another key offering for Verizon: its newly-launched go90 mobile video service. The free service features several popular TV shows, original series and will soon offer live college football and basketball games.

"Longer term, go90 may hold the key. … because it offers the first hints that Verizon’s attention is now turning to a previously untapped source of value: information," says MoffettNathanson analyst Craig Moffett in a post-earnings report Tuesday. "Verizon will need to find a better way to differentiate its wireless business — network differentiation appears to be losing its efficacy — and video might well be the path. But perhaps more importantly, video creates an advertising opportunity that is a whole new business for Verizon."

Follow Brett Molina on Twitter: @brettmolina23.