December 26, 2000, 8:26 AM — AT&T Corp. today said profits for the second quarter ended June 30 were 49 cents per share, down from 54 cents per share for the same period last year and slightly edging out analysts' expectations.
The consensus forecast of 21 analysts polled by First Call Corp. was 48 cents per share.
The earnings reflect the carrier's acquisition of Tele-Communications Inc. and portions of IBM's global network business but exclude gains and charges from nonstrategic operations, according to AT&T officials.
Earnings totaled $1.6 billion, up from $1.1 billion in the second quarter of 1998, also excluding one-time gains and charges from nonstrategic operations.
Revenue for the second quarter, excluding one-time charges and gains, was $15.8 billion, compared with $14.8 billion for the year-earlier period.
AT&T said the revenue increases stem from healthy growth in its AT&T Wireless Services and AT&T Solutions businesses, as well as from cost reductions. AT&T Wireless Services grew second-quarter revenue 42.2%, adjusted for both sales and acquisitions, AT&T said. Revenue in its consumer services declined, however. It fell 3.4% year on year, from $5.7 billion to $5.5 billion.