MCI Surpasses Expectations On Earnings
MCI WorldCom Inc., fueled by growth in Internet traffic, data and old-fashioned phone calls, beat analysts' earnings expectations for the first quarter as revenue grew a healthy 15%.</br></br>But shares of the Jackson, Miss., telecommunications company continued to drop amid uncertainty over whether MCI WorldCom will make a bid for Nextel Communications Inc., the nation's last major independent wireless company.</br></br>MCI WorldCom remains in talks with Nextel about a potential acquisition, but the two sides are said to be deadlocked over price. MCI WorldCom officials are reportedly growing concerned about the fall in their company's stock price as the talks continue. MCI WorldCom shares have lost more than 10% in value since April 12. On the Nasdaq Stock Market yesterday, MCI closed at $83.875, down $3.8125.</br></br>MCI WorldCom had net income of $709 million, or 37 cents a diluted share, compared with pro forma earnings of $191 million, or 10 cents a share, in the year-earlier period.</br></br>Excluding MCI WorldCom's 19% interest in Brazil's Embratel Participacoes SA and a one-time gain, the company had operating earnings of $688 million, or 36 cents a share, compared with the yearearlier pro forma results of $169 million, or 10 cents a share. Analysts had expected operating earnings of 34 cents a share, according to a consensus compiled by First Call Corp.