MCI posts 11% drop in 4th-period net as price-war fears hurt phone stocks

Article Abstract:

MCI Communications Corp will report an 11 percent decline in 4th qtr 1989 net income. The financial report caused the price of MCI stock to fall by more than $3 per share. MCI will post earnings of $108 million, or 39 cents a share, on revenue of $1.71 billion. MCI's revenue increased 19 percent over 1988. The decline is blamed on an industry slowdown and fears of a price war between long-distance carriers. MCI officials believe that pressure on prices will let up, and they may possibly rise in 1990. MCI's calling volume is projected to rise by 25 percent or more, with revenue increasing 22 to 25 percent. Profit margins are likely to remain relatively flat in the first half of 1990. Industry analysts believe that a price war among MCI, AT and T and US Sprint is not likely, although the three may be lowering prices to see 'how nervous they can make each other.'

Telecommunications, Telecommunications Industry, Stock, Fourth Quarter

---

MCI posts loss of $176 million; charge is cited

Article Abstract:

MCI Communications Corp reports a loss of $176 million for its 3rd qtr 1990. The company claims the loss is attributable to a one-time $550 million charge reflecting costs involved with converting its network to digital technology. Revenue for the 3rd qtr rises 20 percent to $2 billion, and not counting the charge, MCI would have reported an earnings increase of 15 percent from the same period a year ago. MCI says the impending recession may hurt it in the coming months, but the company claims it is on firm ground. Analysts say the recession will slow growth, but that MCI and the other long distance carriers are having a more difficult time taking market share from AT and T, particularly among medium-sized businesses.

Third Quarter, Losses

---

Long-distance sector is seen outpacing local phone companies in 4th quarter

Article Abstract:

Long-distance telephone service providers AT and T, Sprint Corp and MCI Communications Corp are all expected to post double-digit growth in operating earnings for 4th qtr 1992. Some analysts say that AT and T could post a gain of 22 percent to 24 percent in operating earnings from 4th qtr 1991. Meanwhile, the seven regional Bell companies continue to show sluggish growth in operating earnings. Nynex Corp is expected to be one of the better performers, with a 7 percent growth in operating earnings for the quarter, to $1.58 per share. GTE Corp could also do well, but Pacific Telesis, hurt by the slumping California economy, might post a 10 percent year-to-year drop in operating earnings.

Regional Bell Operating Companies, Growth (Physiology), Forecasting, Financial Analysis Software, Growth, Long-Distance Telephone Service, Industry Analysts, Bell Regional Holding Companies

Similar abstracts:

• Abstracts: NCR net income decreased 10% in third period. NCR posts 24% drop in 4th-period net; cost of fighting AT&T bid hurt results
• Abstracts: Apple had loss of $53.1 million in latest period; declining profit margins, revamp charges hurt; sales increased just 12%
• Abstracts: Wang Labs posted profit of $2.6 million in latest period, it first in 7 quarters
• Abstracts: Sun Microsystems exceeds forecasts on 2nd-period net. Amdahl's profit tumbled 42% in 4th quarter. Sun Microsystems reports a profit for its 4th quarter
• Abstracts: Businessland posts $1.2 million loss for its 2nd period. Businessland posts fourth-quarter loss of $21.5 million; stock plummets 58%

This website is not affiliated with document authors or copyright owners. This page is provided for informational purposes only. Unintentional errors are possible.