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News > Companies
AT&T trims earnings outlook
August 29, 2000: 6:29 a.m. ET

Consolidation of Excite@Home results into AT&T to cut 3Q by 5 cents a share
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NEW YORK (CNNfn) - AT&T Corp. Monday trimmed the outlook for its third quarter profits by five cents a share, after announcing it plans to fold the results of Internet access provider Excite@Home into its own reports.

AT&T (T: Research, Estimates), which has voting control of Redwood City, Calif.-based Excite@Home, said it has adjusted its third quarter operational earnings per share target to 35-to-38 cents a share from 40-to-43 cents a share.

graphicBasking Ridge, N.J.-based AT&T also restated operational earnings per share for the first and second quarters to 48 cents and 53 cents, respectively.

In March, AT&T increased its ownership stake in Excite@Home Inc. (ATHM: Research, Estimates) and agreed to extend its distribution agreements with the Internet access provider, accelerating the company's push into the high-speed Internet market.

AT&T at that time said it would absorb Excite@Home's results, and anticipated the 5-cent-a-share dip in operational profits. But on Monday it said the event would occur in the third quarter rather than the fourth quarter, as originally expected. AT&T in March predicted that the addition of Excite@Home's financial results would result in an additional $400 million in revenue this year.

AT&T will have approximately 25 percent of the economic interest in Excite@Home and 74 percent of the voting interest, as compared to the 24 percent economic interest and 56 percent voting interest AT&T had previously.

The two companies on Monday also announced shareholder approval for Excite@Home's new board of directors and governance structure, and completion of extension contracts with Cox Communications and Comcast.

Excite@Home's new board will consist of six members designated by AT&T, four independent members and one management representative. George Bell, chairman and CEO of Excite@Home will chair the board.

Excite@Home will continue to report fiscal results independently.

AT&T stock fell 81 cents to $30.25 Monday, while Excite@Home rose 12 cents to $13.94. Back to top

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Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.