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Verizon 3Q hit by attacks
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October 30, 2001: 12:03 p.m. ET
The telecom misses forecasts and warns its 4Q, 2001 earnings will fall short.
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NEW YORK (CNNmoney) - Verizon Communications Inc. on Tuesday reported third-quarter earnings that missed Wall Street estimates, hurt by the effects of last month's terrorist attacks, and said its results for the rest of the year will also be affected.
The nation's second-largest telecommunications company reported third-quarter earnings of $2.04 billion before one-time items, or 75 cents a share, up from $1.98 billion, or 73 cents a share before one-time items, a year ago. Wall Street analysts surveyed by earnings tracker First Call expected Verizon to earn 77 cents a share.
Verizon, which is based in New York City, said the impact of the Sept. 11 attacks shaved 3 cents a share from its earnings in the quarter.
Including all one-time items, Verizon's earnings fell to $1.88 billion, or 69 cents a share, compared with $3.47 billion, or $1.27 a share, a year ago.
"Verizon has come through a difficult experience in a strong financial and operational position," Chairman and Co-CEO Charles R. Lee said.
Still, Verizon said it expects a slowing economy and the costs associated with recovery efforts will result in fourth-quarter earnings per share of between 77 and 80 cents -- Wall Street analysts expected 80 cents, according to First Call -- and full-year earnings of between $3 and $3.03 a share, compared with analyst estimates of $3.06.
Verizon already had cut its forecast for 2001 earnings in July, citing a prolonged slowdown in the U.S. economy. Most economists expect a recession to follow in the wake of the attacks.
Verizon's quarterly revenue rose to $17 billion from $16.53 billion a year ago.
Verizon (VZ: down $0.49 to $49.70, Research, Estimates) shares were lower in early trade Tuesday. 
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