America On-Line: will it survive ...? Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : America On-Line: will it survive ...?

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: DrGamble who wrote (1496)	2/6/1997 10:44:00 PM
From: (Bob) Zumbrunnen	of 13594

Well, as far as I can tell, the $74 mil restructuring charge was anticipated in the expected 55 cent loss. Somehow, the $24 mil for estimated refunds was enough to make the loss $1.64. Haven't read all of the stories yet tonight, but, no surprise, the one I'm reading now from AOL themselves starts out with bragging about record revenues, etc. I'll look at this in more detail later. Some things aren't quite setting right, like an additional $24 mil in outlays adding $1.09 to the per-share loss; indications they expect to have 100,000 extra modems up in April plus 50,000 leased ones; etc. I'm coming up with a 60 cent per share loss before the $74 mil charge and $24 mil charge. My understanding is the $74 mil charge was expected by analysts and taken into account for the 55 cent estimate. Including the $74 mil but not the $24 mil gives a $1.38 per share loss. The initial hype in the news release might fool some people, but it won't fool the bean counters for a second. The earnings were either considerably below expectations or radically below them, depending on what charges you include.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next