(By Salman - iStockAnalyst Writer)Verizon Communications Inc. (NYSE: VZ) is scheduled to report third-quarter financial results before the market open on Monday, October 26, 2009. Analysts, on average, currently expect the company to report earnings of 59 cents a share on revenue of $27.17 billion. In the year ago quarter, the company reported earnings of 59 cents per share on revenue of $24.7 billion.

Verizon Communications Inc. provides communication services in the United States and internationally. It operates in two segments, Wireline and Domestic Wireless. Early this year, Verizon completed the acquisition of Arkansas-based Alltel, a large regional carrier. The deal catapulted Verizon Wireless, which is 45% owned by Vodafone of the United Kingdom, past AT&T (T) as the nation's largest wireless-phone company.

Late in July, Verizon Communications Inc. reported that second-quarter profit dropped 7.2% on onetime costs and further weakness in its traditional wireline business. Net income totaled $3.16 billion, or 52 cents a share, down from $3.40 billion, or 66 cents a share, in the year-ago quarter. On an adjusted basis, the company earned 63 cents a share. Revenue jumped 11.3% to $26.9 billion. Analysts, on average, expected the company to earn 62 cents a share on revenue of $26.9 billion.

Verizon has largely weathered the recession as its wireless segment continues to register solid growth in both customers and revenue. Verizon gained a net 1.1 million wireless customers, bringing the total subscriber base to 87.7 million at the end of second quarter. Revenue from Domestic Wireless increased 27.7% to $15.48 billion; Retail customers were 85.2 million, up 27.8% from last year. Net customer additions, excluding acquisitions and adjustments, were 1.1 million. Churn improved sequentially but was up from second quarter last year. On a pro forma basis total churn of 1.37% was up 14 basis points year over year and retail postpaid churn was up 12 basis points to 1.01%.

On the other hand, Wireline segment generated revenues of $11.49 billion, a decline of 5.2% from last year.

Verizon has invested heavily in its Fiber-to-the-Home (FTTH) service or FIOS, which it advertises as a "triple play" package as it bundles internet, TV and wireline phone together for one low price. The company added 300,000 customers for its fiber-TV service during the second quarter. FiOS revenues totaled more than $1.3 billion in the quarter, up 60.3% compared with the second quarter last year. The segment reported a 13.7% increase in consumer average monthly service revenue per user or ARPU.

The company's Service average monthly service revenue per user or ARPU decreased 0.8% year over year to $51.10.

The telecommunications services provider, which has been laying off workers to cut costs, said in July that it will cut a further 8 thousands jobs in response to the weak economic conditions.

The company is all set to launch its 4G network in 2010 in 30 metropolitan areas and expects to blanket the continental U.S. and Hawaii with the new wireless network by 2015. The 4G network will handle more wireless services and with better speed and quality than 3G network. On the other hand, rival AT&T (NYSE: T) is not looking to deploy its 4G network until 2012.

Last month, the company boosted its quarterly dividend to 47.5 cents per outstanding share, an increase of 1.5 cents per share, or 3.3%, from the previous quarter.

Early in October, Verizon Wireless said that it will soon launch two phones loaded with Google Inc.'s mobile software Android.

In terms of stock performance, Verizon shares are down over 16% since the beginning of the year. On Friday, shares of the company fell 4 cents or 0.14% to $28.98 in midday-trade.

Disclosure: Author doesn't own any of the stocks discussed here.