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Monday, June 1, 2020  Spokane, Washington  Est. May 19, 1883
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Sprint Nextel earnings plummet, but top estimates

Various models of phones are displayed on a computer screen as a customer is helped at a Sprint store in Murray, Utah. Associated Press
 (Associated Press / The Spokesman-Review)
Various models of phones are displayed on a computer screen as a customer is helped at a Sprint store in Murray, Utah. Associated Press (Associated Press / The Spokesman-Review)
By From Wire Reports The Spokesman-Review

Wireless provider Sprint Nextel Corp. on Wednesday said second-quarter profits dropped sharply, but it still beat Wall Street estimates and had positive news on subscriber growth for the first time in almost a year.

The Reston, Va.-based company, with operational headquarters in Overland Park, Kan., said it earned $19 million, or 1 cent per share, during the three months ending June 30, compared with $370 million, or 10 cents per share, during the same period a year ago.

Not counting one-time amortization, the company said it earned 25 cents per share, beating the 22 cents per share prediction of analysts surveyed by Thomson Financial. Revenue during the quarter rose about 2 percent from $10 billion to $10.16 billion, missing Wall Street’s estimate of $10.2 billion.

Sprint Nextel shares fell 45 cents, or 2.2 percent, to $19.77 Wednesday.

•Rupert Murdoch’s News Corp. reported higher earnings in its latest quarter Wednesday, one week after the media conglomerate wrapped up a three-month campaign to buy Wall Street Journal publisher Dow Jones & Co.

Murdoch, speaking on a conference call with analysts and reporters, said he had high hopes for Dow Jones’ potential, saying there was no company better positioned to exploit the growing demand for financial information.

For its latest quarter, News Corp.’s net earnings rose 4 percent as higher cable network results outweighed weakness in movies and television.

Delphi Corp. on Wednesday posted a narrower net loss during the second quarter that reflected charges for its restructuring and estimated costs related to lawsuits over allegations of accounting improprieties that led to restated earnings.

The Troy-based auto supplier and former parts-making operation of General Motors Corp. reported a net loss of $821 million, or $1.46 a share, compared with a loss of $2.3 billion, or $4.05 a share, during the same period last year. Last year’s second quarter included charges of $1.9 billion related to U.S. employee attrition programs.

Bausch & Lomb Inc., which has agreed to a $3.67 billion buyout by a private equity firm, on Wednesday reported a $15 million profit in the second quarter on higher sales of contact lenses, eye-care medicines and lens cleaners.

Rocked last year by the worldwide recall of a multipurpose lens solution, the eye-care products maker earned the equivalent of 27 cents a share. That compared with a loss of $15.1 million, or 28 cents a share, in last year’s April-June quarter.

Sales jumped 14 percent to $649.5 million from $571.5 million a year ago.

Cablevision Systems Corp., a New York-area cable TV provider, reported higher profits Wednesday following an asset sale, but lowered its full-year revenue and profit estimates.

The company, which has 3 million cable subscribers in the New York area and owns Radio City Music Hall and Madison Square Garden, earned $317.4 million in the three months ending in June, compared with $14.6 million a year ago.

Per-share earnings rose to $1.08 from 5 cents.

Cablevision’s stock rose 28 cents to $34.00 Wednesday.

Revlon Inc. reported narrowed second-quarter losses Wednesday as the New York-based cosmetics company reaped benefits from a restructuring program initiated last year, a solid rise in sales and better cost controls.

The company, which is controlled by financier Ron Perelman and markets such products as Almay cosmetics and Charlie perfume, said it lost $11.3 million, or 2 cents per share, for the three months ended June 30.

That compared with $87.1 million, or 20 cents a share during the same period a year ago.

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