Talk about blowing estimates out of the water....look and see what analysts expected NXTL to report, and look what they reported...a HUGE differance...also, look at last years results as compared to this years results...that per share profit sure looks nice.....and lets not forget the billions of dollars they saved themselves by retiring some of their debt, and by retiring that debt, they send a note of confidence....why buy back debt if your fixing to go chapter 11?? A couple months ago, folks talked about nxtl going under.....now they have blown away the numbers, made a very nice profit, and put confidence back into investors minds, by retiring some of their debt.....market may tank, and nxtl may tank along with it, but you know what, no matter how bad the economy gets, and no matter how low the market and any individual stock may fall, people will still have and use their cellphones, and they will migrate to the best service for the money.....currently nextel ranks 5th.....but they are quickly taking customers from the competition.....they surely have room to grow, and will probably end up number 1 when all is said and done.....a year ago, the nextel service was a fad....for a niche market....today, as more and more people switch to nextel, they are getting both the business end and the individual user as well.....direct connect to be global within a couple years!! and those wanting in on the technology, will have to pay a fee to nxtl, or come up with their own direct connect service that doesnt infringe upon mextels technology...and royalties are pure profit, which are great for the bottom line.....I knew months ago when qcom and mot entered into their pact with nxtl, that nxtl was for real.....their earnings validate that in my opinion.....what awesome growth in a terrible bear market and a worse one for the telcoms!!
By Kenneth Li
Senior Writer
07/16/2002 11:53 AM EDT
Updated from 9:17 a.m. EDT
With thoughts of insolvency now far in the background for the first time in months, Nextel (NXTL:Nasdaq - news - commentary - research - analysis) crashed through analyst estimates for its second quarter and raised guidance for the year, driving wireless carrier shares higher in the morning session and kicked off the earnings season to a good start, analysts said.
The nation's fifth-largest wireless carrier beat estimates by a staggering 61 cents, and achieved net profitability for the first time, earning $325 million, or 37 cents a diluted share, on improved revenues of $2.2 billion for its second quarter. Analysts polled by Thomson Financial/First Call expected the company to report a loss of 24 cents per share.
Those results compare favorably against the year ago period's net loss of $369 million, and 56 share loss, on revenues of $1.72 billion. |
