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To: limtex who wrote (2954)	7/22/1998 5:18:00 PM
From: Anthony Wong	Respond to of 11568

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

To: limtex who wrote (2954)	7/23/1998 2:43:00 PM
From: Anthony Wong	Read Replies (1) \| Respond to of 11568

WorldCom 2nd-Qtr Profit Rises Fivefold on Data Sales (Update1) Bloomberg News July 23, 1998, 12:55 p.m. ET WorldCom 2nd-Qtr Profit Rises Fivefold on Data Sales (Update1) (Adds analysts' comments in the 9th and 12th paragraphs. Updates stock price in the 6th paragraph.) Jackson, Mississippi, July 23 (Bloomberg) -- WorldCom Inc., the No. 4 U.S. long-distance phone company, said second-quarter earnings rose more than fivefold, beating expectations, on surging sales of Internet and other data services. Net income rose to $227.5 million, or 21 cents a diluted share, from a pro forma $41.6 million, or 4 cents, a year earlier. Results are a penny above the average estimate of 20 cents a share from analysts polled by First Call Corp. WorldCom's profit is soaring as companies turn to the Internet for information and to conduct business, and as its investments in high-growth international and local phone services start to pay off. ''WorldCom is dedicating itself to the sweet spots of the market,'' said Guy Woodlief, an analyst at Prudential Securities Inc., who has a ''buy'' rating on the stock. ''There's nobody that can compare with WorldCom in terms of growth.'' Meet '98-'99 Estimates On a conference call with analysts and investors, WorldCom Chief Financial Officer Scott Sullivan said he expects the company to meet earnings estimates for 1998 and 1999, analysts said. According to First Call Corp., WorldCom is expected to earn 89 cents a share this year and $1.96 in 1999. Shares of WorldCom rose 2 1/8 to 56 7/16 in early afternoon trading. Sales rose 32 percent to $2.61 billion from $1.97 billion in the quarter, on a pro forma basis, to include companies WorldCom acquired during the past year. WorldCom's sales were quadruple No. 3 Sprint Corp.'s 8.2 percent rate, and eclipsed No. 1 AT&T Corp.'s lackluster 1 percent sales growth. Sales from data services in the U.S. rose 41 percent, driven by demand from Internet access and related services. Sales specifically for Internet services rose 73 percent as more business customers migrate their data networks to Internet-based technologies, WorldCom said. ''They have a superior product line aimed at the most attractive niche of the market,'' said William Vogel, an analyst at NationsBanc Montgomery Securities, who has a ''buy'' rating on WorldCom. Record Highs Sales from international services -- those that originate outside the U.S. -- rose 52 percent, while U.S. voice-services sales rose 23 percent. Earlier this week, WorldCom unveiled a pan-European fiber- optic network to take on British Telecommunications Plc and other incumbent phone companies there. ''I'm predicting huge market share gains in Europe,'' said Joseph Noel, an analyst at Hambrecht & Quist, who has a ''buy'' rating on WorldCom. WorldCom 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. ''Our strong earnings are once again the product of an organization focused on the bottom line and demonstrate a proficiency at integrating merged companies,'' said Bernard Ebbers, president and chief executive of WorldCom. WorldCom shares have risen about 80 percent so far this year, compared with a 27 percent gain at Sprint and a 6 percent slide at AT&T. --Andrew Brooks in the Princeton newsroom (609) 279-4066 with