Phone industry's expected profit gains may not reflect robust performances
Article Abstract:
Third qtr results for telephone companies look good when compared to other industries. Even so, the phone companies' numbers will not necessarily be robust. Profits in the year-earlier period were depressed by one-time charges, labor-settlement costs and new state regulatory arrangements. Analysts expect earnings for regional Bell companies to rise six percent to 14 percent with the exception of BellSouth, which experienced high expenditures and rate cuts. Long distance companies will do less well. MCI Communications Corp's earnings will be lowered because of the company's $125 billion acquisition of Telecom USA and because of higher taxes. AT&T is still being hurt by costs associated with its credit card business. United Telecommunications Inc, owner of US Sprint, is still recovering from a 2nd qtr $72 million charge.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1990
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Ameritech's earnings increased 7%, Cincinnati Bell's 31% in 4th quarter
Article Abstract:
Ameritech and Cincinnati Bell Inc announce impressive earnings gains in 4th qtr 1989, reflecting similar gains throughout the telecommunications industry. Ameritech reports strong demand for cellular service and growth in its long-distance segment fueled its 7 percent net income increase. Cincinnati Bell's earnings grow 31 percent to $22.7 million on the strength of its Information Systems unit and other new businesses. Analysts say the telecommunications industry is in good shape because of strong demand for networking and other business services and the decline in long distance prices. Almost all telecommunications companies are expected to show strong to modest gains in 4th qtr 1989 with the exceptions of Nynex Corp and Bell Atlantic Corp.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1990
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Four Baby Bells post 3rd-period gains, while BellSouth's results were flat
Article Abstract:
Third quarter results from five Baby Bell's - Ameritech, BellSouth, Pacific Telesis, Southwestern Bell and Cincinnati Bell - are generally impressive. BellSouth Corp is the only Bell company to report flat profits, primarily because of rate reductions in six of the nine states in its service area. BellSouth's revenue rises to $3.6 billion from $3.5 billion. Ameritech reports revenues increasing by 4.5 percent due to strong growth in new lines. Pacific Telesis reports an increase in net income of 2.5 percent, and revenue rises by 4.2 percent. Southwestern Bell reports that revenues for the quarter are up 7.2 percent. Cincinnati Bell reports a revenue increase of 18 percent.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1990
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Comment about this article or add new information about this topic:
- Abstracts: Computer firms expected to post mixed results for latest quarter. Off-line: among those baffled by technology are lots of stock analysts; often when they say 'buy,' shares have plummeted; IBM is the latest case
- Abstracts: Computer software firms are expected to post profit gains for fourth quarter. Microsoft, Lotus are expected to lead software firms to solid quarterly gains
- Abstracts: Apple had loss of $53.1 million in latest period; declining profit margins, revamp charges hurt; sales increased just 12%
- Abstracts: Lotus to unveil delayed 1-2-3 for Macintosh. Lotus's founder shows first work of new company. Lotus set back in developing 1-2-3 for Apple
- Abstracts: Microsoft again signals growth is leveling off; software firm to be 'happy' if fiscal 1993 revenue rises at only 25% pace