WorldCom 2nd-Qtr Earnings Seen at 20c-Share: Earnings Outlook
Bloomberg News
July 22, 1998, 4:39 p.m. ET
Expected Earnings
WorldCom Inc., the No. 4 U.S. long-distance phone company,
is expected to earn 20 cents a diluted share in the second
quarter, according to analysts polled by First Call Corp. That
compares with a pro-forma profit before charges of $30 million,
or 2 cents, in the year-earlier period. The pro-forma results are
adjusted to include companies WorldCom has acquired in the past
year.
Time
WorldCom, based in Jackson, Mississippi, is expected to
report earnings tomorrow before U.S. trading begins.
Behind the Numbers
WorldCom's profit is soaring amid surging demand for
Internet and other data services as companies turn to the
Internet for information and to conduct business. WorldCom's
investments in high-growth international and local phone services
are also starting to pay off.
The company's sales are expected to rise 30 percent, more
than triple the rate No. 3 Sprint Corp. reported yesterday and
well above the expected 1 percent rise of AT&T Corp., the largest
phone company.
What the Experts Say
''There's nobody that can compare with WorldCom in terms of
growth,'' said Guy Woodlief, an analyst at Prudential Securities
Inc., who has a ''buy'' rating on the stock.
Previous Market Reaction
WorldCom shares rose 3/4 to 44 3/8 on April 23, when the
company reported first-quarter profit beat expectations.
Market Performance
The shares have risen to record highs in the past month
after the U.S. Justice Department and European Union approved its
proposed $50.1 billion purchase of No. 2 long-distance company
MCI Communications Corp. WorldCom expects to complete the
purchase, the largest ever in the telecommunications industry,
later this summer.
--Andrew Brooks in the Princeton newsroom (609) 279-4066/rjb |
