|
Telecoms beat targets
|
 |
July 20, 2000: 12:35 p.m. ET
SBC, Sprint and BellSouth edge past forecasts with growth in wireless units
|
NEW YORK (CNNfn) - Three major telecommunications companies squeaked past earnings forecasts Thursday, driven by better-than-expected growth in wireless communications.
SBC Communications Inc., a component of the Dow Jones industrial average, reported relatively flat second-quarter earnings, excluding special items, of $1.92 billion, or 56 cents a diluted share. That beat the forecast of analysts surveyed by earnings tracker First Call of 55 cents a share, and was slightly ahead of the $1.91 billion, or 55 cents a share, reported a year earlier.
 Including special items, the local phone, wireless and data communications company posted net income of $1.85 billion, or 54 cents a share, down from $1.94 billion, or 56 cents a share, a year ago.
Revenue increased 9.8 percent to $13.2 billion from $12.0 billion. The company said that was driven by units outside its core local phone service. The company said it also saw strong subscriber growth for high-speed Internet service and long-distance service that it recently began to offer.
For the first six months, net income rose to $3.7 billion, or $1.07 a diluted share before the impact of an accounting change, from $3.9 billion, or $1.07 a share, a year earlier. Year-to-date revenue increased 7.1 percent to 25.8 billion from $24.1 billion. Shares of SBC (SBC: Research, Estimates) gained 3/4 to 44-3/8 in early trading Thursday.
Sprint says it can continue without merger
Sprint Corp., the nation's third-largest long-distance provider, said its second-quarter profit edged past forecasts.
Sprint dropped its proposed acquisition by No. 2 long-distance provider WorldCom (WCOM: Research, Estimates) earlier this month in the face of regulatory concern. The company took a $163 million charge, or about 12 cents a share, for dealing with merger-related costs in the quarter. Company officials insisted Thursday that it is well positioned to continue as an independent company.
 The company said its "normalized" earnings, which account for acquisitions and other transactions, were $440 million, or 50 cents a share, in the quarter. That beat the 49-cent forecast of analysts surveyed by First Call. The company earned $435 million, or 49 cents a share, on the same basis a year earlier, although First Call said it believes the year- earlier number is 51 cents a share.
 Its Sprint PCS (PCS: Research, Estimates) wireless operations, which has its own tracking stock, saw revenue nearly double to $1.46 billion from $736 million a year earlier. It posted a net loss of $456 million, or 46 a share, excluding special items. That's down from the loss of $558 million, or 61 cents a share, a year earlier.
The company said overall revenue grew 19 percent to $5.8 billion from $4.9 billion a year earlier.
Shares of Sprint (FON: Research, Estimates), fell 2-3/8 to 42-5/8 in trading Thursday, while its wireless tracking stock gained 23/32 to 64-9/16.
BellSouth sees growth across the board
BellSouth Corp. (BLS: Research, Estimates) the dominant local telephone company in the southeastern United States, said its second-quarter operating profit rose more than 9 percent, beating Wall Street expectations, amid strong growth in its data, wireless and international operations.
Atlanta-based BellSouth said its profit rose to $1.06 billion, or 56 cents a share, from $973 million, or 51 cents per share, before special items, in the year-ago period. Analysts had been expecting BellSouth to earn 55 cents a share, according to First Call.
BellSouth, which serves nine southeastern states from Kentucky to Florida, said second-quarter revenue rose nearly 10 percent to $6.75 billion. 
-- from staff and wire reports
|
|
|
|
|
 |
|
