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WorldCom 2Q off mark
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July 26, 2001: 8:28 a.m. ET
Low prices, high competition hurt telecom service provider's earnings
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NEW YORK (CNNfn) - Telecom service provider WorldCom Inc. reported second-quarter earnings Thursday that fell short of Wall Street expectations, as low prices and high competition cut into profit.
WorldCom said it earned $574 million, or 20 cents a share, in the second quarter, compared with $771 million, or 26 cents a share, a year earlier. Analysts polled by earnings tracker First Call expected WorldCom to earn 21 cents a share.
WorldCom had revenue in the quarter of $5.4 billion, up from $4.8 billion a year ago.
Clinton, Miss.-based WorldCom warned earlier this month that 2001 cash profit would be below its previous guidance, although it said its second-quarter results would be in line with forecasts.
On Thursday, WorldCom said again it expected "cash earnings," or earnings before taxes, depreciation and amortization, of between $1.05 and $1.10 per share in 2001. Analysts polled by First Call expect cash earnings of $1.06 for the year.
WorldCom (WCOM: Research, Estimates) shares closed Wednesday down 17 cents at $13.35. 
- from staff and wire reports
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