View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. Technology
January 26, 1998

AT&T SURPRISES THE STREET WITH STRONG Q4 EPS

By CBR Staff Writer

AT&T Corp has reported fourth-quarter income from continuing operations of $1.32bn, or $0.81 per share, a solid improvement over a profit of $1.25bn, or $0.77 per share, a year ago. The $0.81 per share beat out the First Call consensus by a solid $0.10. Revenue for the quarter was essentially flat at $12.83bn as a result of decreased revenues from consumer long distance services, which fell 6.8%. Overall long-distance revenue, which includes the consumer and corporate markets, fell 2.3% to $11.39bn, even though calling volume rose 7.2%. For the year, overall long distance revenue was flat on 8.7% volume growth. Wireless revenue grew 4.2% to $1.13bn in the quarter. The bottom line improvement for the quarter is being attributed to the company’s cost cutting efforts, as it has decreased access and interconnection expenses and reduced selling, general and administrative expenses. Operating expenses dropped by $177m, or 1.6%, to $10.79bn for the quarter. SG&A spending dropped to 28.4% of revenue from 29% in last year’s fourth quarter. Consolidated results, which include income from discontinued operations, show fourth-quarter net income down 17.8% at $1.33bn. Year-ago results benefited from a gain of $162m, or $0.10 per share, on the sale of AT&T Capital Corp, as well as income of $0.13 per share from the unit. For the year, consolidated results show net income that fell 21.5% to $4.64bn on revenue up 1.5% at $51.32bn. Earnings per share fell 22.4% to $2.84. On a continuing operations basis, 12-month income was $4.47bn, or $2.74 per share, against $5.57bn, or $3.45 per share, last year. AT&T shares fell $3.8125 to $61.6875, as result of the company’s restructuring announcement (see Top Stories).

Content from our partners
DTX Manchester welcomes leading tech talent from across the region and beyond
The hidden complexities of deploying AI in your business
When it comes to AI, remember not every problem is a nail

Websites in our network
Select and enter your corporate email address Tech Monitor's research, insight and analysis examines the frontiers of digital transformation to help tech leaders navigate the future. Our Changelog newsletter delivers our best work to your inbox every week.
  • CIO
  • CTO
  • CISO
  • CSO
  • CFO
  • CDO
  • CEO
  • Architect Founder
  • MD
  • Director
  • Manager
  • Other
Visit our privacy policy for more information about our services, how Progressive Media Investments may use, process and share your personal data, including information on your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.
THANK YOU