AT&T's profit drops 36%, but tops street estimates

Article Abstract:

AT&T's net income for its second qtr in 1997 fell by 37% to $959 million, or 59 cents a share. The telecommunications giant's net income in 1996 was $1.54 billion, or 59 cents a share. The company's operating revenue dropped by 33% to $1.56 billion, down from $2.32 billion in 1996. AT&T's revenue did rise slightly, 2.4% to $13.17 billion compared to $12.87 billion from the previous year. The company would have seen a larger increase in revenue but its Universal Card unit did not do very well. Long-distance traffic rose 9.7% during the quarter, the largest increase since 1987. The increase in revenue for long-distance calls was 1.5% to total $11.58 billion and the company's wireless and local services grew by 3% to $12.82 billion.

Company Earnings/Profit

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AT&T posts big profit drop for 1st quarter

Article Abstract:

AT&T claims that increasing investments in its primary long-distance unit coupled with new marketing efforts resulted in a 25% decline in its 1st qtr 1997 profits. At&T's stock prices closed at a 52-week low of $33, down 62.5 cents, on Apr 21, 1997. The company's net income during the 1st qtr 1997 declined to $1.13 billion, down from $1.36 billion in the 1st qtr 1996. AT&T's continuing operations' profit also fell to 69 cents per share from 92 cents per share during the same period in 1996. While overall revenue increased to $13.05 billion from $12.05 billion, consumer phone service revenue dropped by 1% and business revenue grew by only 2.4%. At&T's operating profit in its communication services unit declined by 31%.

Company sales/revenue, Company losses, Company earnings/profit

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