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News > Technology
WorldCom 2Q off mark
July 26, 2001: 8:28 a.m. ET

Low prices, high competition hurt telecom service provider's earnings
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NEW YORK (CNNfn) - Telecom service provider WorldCom Inc. reported second-quarter earnings Thursday that fell short of Wall Street expectations, as low prices and high competition cut into profit.

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WorldCom said it earned $574 million, or 20 cents a share, in the second quarter, compared with $771 million, or 26 cents a share, a year earlier. Analysts polled by earnings tracker First Call expected WorldCom to earn 21 cents a share.

WorldCom had revenue in the quarter of $5.4 billion, up from $4.8 billion a year ago.

Clinton, Miss.-based WorldCom warned earlier this month that 2001 cash profit would be below its previous guidance, although it said its second-quarter results would be in line with forecasts.

On Thursday, WorldCom said again it expected "cash earnings," or earnings before taxes, depreciation and amortization, of between $1.05 and $1.10 per share in 2001. Analysts polled by First Call expect cash earnings of $1.06 for the year.

WorldCom (WCOM: Research, Estimates) shares closed Wednesday down 17 cents at $13.35.  graphic


- from staff and wire reports

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Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.