Verizon Beats Forecasts as Profit Rises 46% on Wireless, DSL Gains

Verizon Communications Inc. said Wednesday that its first-quarter profit jumped 46% to $1.76 billion, surpassing expectations, as Verizon Wireless improved on its industry-leading performance and the company’s DSL business posted its fastest growth yet.

Verizon’s profit was 63 cents a share, compared with $1.2 billion, or 43 cents, a year earlier, when the New York-based company was weighed down by $446 million in costs to cover early-retirement packages as it reduced its workforce by 21,000 employees.

Revenue increased 6.6% to $18.18 billion in the quarter, up from $17.06 billion last year.

Verizon declined to comment regarding its next move in a tense bidding war to acquire MCI Inc., which over the weekend embraced a $9.75-billion offer from Qwest Communications International Inc.

Executives refused to say whether Verizon would act by a Friday deadline to improve on its $7.5-billion deal with MCI or possibly walk away from the three-month battle. Many analysts and investors expect Verizon to offer more, although not as much as Qwest has bid.

Verizon’s results exceeded Wall Street forecasts on multiple fronts, although a slight drop in profit margins raised some concern. Verizon’s stock price rose $1.22, or 3.6%, to $35.22 on the New York Stock Exchange.