Earnings decline 6% at A.T.&T.; four Bell regionals have mixed results

Article Abstract:

AT&T reports a six percent decline in earnings for the 2nd qtr of 1990. Profits for the 2nd qtr of 1990 were $657 million, or 60 cents a share, as compared $699 million, or 65 cents a share, in the 2nd qtr of 1989. Sales fell 2.5 percent from the 2nd qtr of 1989, to $9.03 billion from $9.26 billion. AT&T attributes the decline to a drop in equipment sales and rentals, higher income taxes and the costs of introducing a combination calling and credit card. AT&T's share price rose 50 cents to close at $37.625 on Jul 19, 1990. BellSouth's 2nd qtr profits rose 6.5 percent, to $445.2 million, from $418.1 million a year ago. Nynex's 2nd qtr profits rose 7.7 percent, to $300.6 million, compared to $279 million. Pacific Telesis's 2nd qtr profits fell 11.7 percent, to $287 million, from $325 million. And Southwestern Bell reports a small increase, to $262.5 million, from $261.5 million.

Regional Bell Operating Companies, Bell Regional Holding Companies

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A.T.&T. expects profit drop; trouble in meeting '90 targets is seen

Article Abstract:

AT and T's stock closed at $39.125 a share, down $2.125, on Jun 27, 1990, after the company announced its 2nd qtr earnings were likely to be lower than earnings for the same period in 1989. AT and T attributed the drop to lagging sales of computer and telephone equipment, and to the high cost of entering the credit card market. The telephone company expects that earnings for 1990 will exceed 1989 earnings, which were $2.7 billion on $36.1 billion in sales, but the company says it will be difficult to meet the target of 10 to 12 percent annual earnings growth. Analysts reduced 2nd qtr 1990 estimates to 58 cents a share, from 72 cents a share, and cut estimates of 1990 profit to $2.65 a share, from $2.90 a share.

Telecommunications industry, Forecasting

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