Several communications companies and Internet firms will report earnings next week, giving closing numbers for the last tumultuous quarter of 2000. Major wireless carriers including AT&T and Sprint will post quarterly results, as will AOL Time Warner, offering its first quarterly report since finalizing their merger.
Also next week, the Federal Open Market Committee will meet to discuss whether to further lower interest rates. The Fed cut rates in the beginning of January by a half-point, the first rate cut in two years. While the markets were lifted on the news, investors and analysts agreed that more rate cuts would be needed to prevent the economy from falling into a recession.
In the case of AT&T, investors will be listening to hear how the company's massive restructuring plans, announced in October, have panned out financially.
So far, prospects don't look great. In December, AT&T warned for the second time, that its fourth-quarter earnings and revenues would miss projections. The company has a heavy debt load from a series of acquisitions, as well as from plummeting long-distance rates.
Sprint will also be impacted by the long-distance fallout, but less so than its competitors. Long-distance makes up just more than 15 percent of the company's revenue, compared with nearly 20 percent at WorldCom and more than 26 percent at AT&T.
In early November, Sprint lowered earnings estimates for its primary telecommunications unit but projected strong growth for its wireless unit.
AOL Time Warner will also be reporting its earnings this week, in its first earnings call since the company was formally approved for its merger. Analysts will be listening closely for clues for how to value the new breed of company. It will be scrutinized as to whether it is an Internet company or a traditional media company.
Other companies scheduled to report this week include Earthlink, Amazon.com, TiVo, PeopleSoft and MP3.com.
Other events scheduled this week:
- Digital Independence
2001 will take place at the Yerba Buena Center for the Arts in San
Francisco Jan. 29-30. The two-day conference will explore the role of
digital technologies on independent artists.
- SanSecurity will take place at the
New Orleans Marriott Jan. 28-Feb.2. The conference will
offer a series of immersion-training programs on subject areas in network
- Entertainment in
the Interactive Age will take place at USC's Davidson Conference Center
in Los Angeles Jan. 29-30. The conference will examine the new technology
used by interactive video and computer games, as well as the influence these
games have on entertainment and culture. Will Wright, creator of the highly
successful "Sim City" and "The Sims," will be the keynote speaker.
- iStartup Fever will take
place at the Baruch College Conference Center in New York Jan. 29-30. The
event offers entrepreneurs the opportunity to establish contacts with New
York City's angel investors, venture capital fund managers and strategic advisers who
specialize in the early stages of investment.
- B2B Online
Exchanges will take place at Austin, Texas, Hilton.
The company will focus on how companies can introduce products to larger
audiences using the Internet.
- Integrating ATM
for Next Generation Packet Networks will take place at the Rancho
Bernardo Inn in San Diego, Calif. Jan. 29-31. The conference will examine the
evolving standards of the asynchronous transfer mode, a standard
packet-switching protocol for transmitting and receiving data that uses uniform
- Carlsbad, California: AMR Research holds Strategy 21. Speakers include Marc Andreeson, Netscape's co-founder; Peoplesoft Chief Technology Officer Rick Bergquist, and Blue Martini CEO Monte Zweben. For information on the event call: (617) 574-5199. The event will take place Jan. 28-30 at the La Costa Spa and Resort.
Tuesday, Jan. 30
- The Jupiter Online Health Forum, will take
place at the Walt Disney Dolphin Hotel in Orlando, Fl., Jan. 30-31. Jupiter
analysts and industry executives will discuss the latest trends and issues
in the online health care industry.
- Linux World Conference &
Expo will take place at the Jacob Javits Convention Center in Manhattan,
Jan. 30 to Feb.2. Speakers there will include VA Linux Systems Founder Larry
Augustin, IBM Chief Operating Officer Samuel Palmisano and Intel Vice President Patric
- The Five Burning
Questionsconference will take place at the LAX Sheraton Gateway Hotel in Los Angeles Jan. 30-31. The following questions will be addressed: Where is the
money flowing? Digital Satellite Radio, how can it not be huge? Emerging
global satellite markets--a worldwide reach? Cabel vs. Satellite? Wires vs.
Wednesday, Jan. 24
- Medicine Meets
Virtual Reality will take place at the Marriott Hotel & Tennis Club in
Newport Beach, Calif. Jan. 24-27. The conference will discuss hardware and
software applications for healthcare providers, and look at how virtual
reality is transforming aspects of medicine.
Thursday, Feb. 1
- Springboard 2001 will
take place at the Oracle Conference Center in Redwood Shores, CA. The
conference aims to help women access equity capital markets both as
entrepreneurs and investors. Selected entrepreneurs will present 8 minute to 10
minute presentations to an audience of more than 300 corporate investors, angel and
venture investors and Silicon Valley's consulting, legal and tech firms.
Mon, Jan. 29
Software makes XML-based e-business software that lets companies
organize information from multiple sources in a searchable format online.
The consensus estimate for the company's per-share loss is 17 cents.
- AT&T, the
No. 1 long distance company in the Unites States, has a per-share consensus estimate of 26 cents.
Wireless is the third-largest mobile phone provider in the United States behind
Verizon Wireless and Cingular Wireless (the SBC-BellSouth joint venture). Per-share consensus estimate: N/A.
- Expedia, the online site that lets users book airline tickets, make hotel
reservations, and secure car rentals, has a per-share estimate pegged at a loss of 15 cents.
- Nokia, the
No. 1 seller of mobile handsets in the world, ahead of Motorola and
Ericsson, has a per-share estimates of 21 cents.
- Earthlink, the No. 2 Internet service provider behind
America Online, has a per-share estimated loss of 51 cents.
- AvantGo, which
makes software for handheld computers, has a per-share consensus estimate of a loss of
- Amazon, the giant online book seller now diversified into many markets, has a per-share consensus estimate loss of 26 cents.
- Autoweb.com, which operates a web site that lets customers order cars online, is also scheduled to report. Per-share consensus estimate: N/A.
- Legato, which
makes storage management software, has a per-share consensus estimated loss of 4
- RealNetworks, maker of RealJukebox and RealPlayer software that plays
audio and video over the Internet, has a per-share consensus estimate of 2 cents.
- TiVo, which
makes a popular digital video recorder that allows people to record, store and search
television programs through a set-top box, has a per-share consensus estimated
loss set at $2.64.
Arts, the No.1 video game publisher in the United States, is looking at a per-share
consensus estimate of 67 cents.
Online Time Warner is the result of a merger between the largest ISP,
America Online, and media giant Time Warner. The per-share consensus estimate on the media and online giant is
- Celestica makes printed circuit assemblies and systems for electronics
makers such as Cisco, IBM and Hewlett-Packard. Celestica's wares are
used in computer servers, workstations, peripherals, and communications
devices. The per-share consensus estimate on Celestica is 44 cents.
operates an online music site where people can store, purchase and sample
music in MP3 format. It has a per-share consensus estimate loss anticipated at 13 cents.
- StorageNetworks, which operates a network of more than 20 data centers
serving clients including Yahoo, Merrill Lynch and AristaSoft has a per-share
consensus estimate projected at 17 cents.
- PeopleSoft is the No. 3 seller of applications that tie together
customers' global back-office operations. SAP is No. 1 and Oracle is Nov. 2. The per-share consensus estimate is 9 cents.
, which provides local and long distance phone service and is the No. 1 non-Baby
Bell local phone service company has a per-share consensus estimate of 39 cents.
PCS, the cellular service unit of Sprint, has a per-share consensus
estimate of a loss of 53 cents.
provides Internet access, transport and transit of data traffic, Web
hosting, and e-commerce services and has a per-share consensus estimate of a loss of 29
Tuesday, Jan. 30
- Consumer Confidence will be reported for the month of January. This
figure, measured by an index, represents consumer sentiment towards the
economy. The index is expected to fall to 127 from 128.3.
- Federal Open Market Committee will meet and determine whether
to further reduce interest rates. The Fed lowered rates earlier this month
by a half percentage point.
- Gross Domestic Product represents the nation's total output of
goods and services. This number is expected to rise to 2.3 percent from 2.2
- New Home Sales represents the number of homes sold nationwide. The
Federal Reserve watches such indicators, reasoning that the more consumers
buy homes, cars and other high-priced items, the hotter the economy is. The
number is supposed to drop to 890,000 in December from 909,000 the previous
- Auto Sales represents the number of new cars sold in the United
States. This number is expected to fall to 5.8 million, from 5.9 million.
- Initial Claims refers to the number of people who filed for
unemployment benefits each week as reported by the Department of Labor.
Claims will be reported for the week of Jan. 27.
- Personal income shows the monthly percentage change in household income from the Commerce Department. This number is expected to fall to 0.3 percent for December.
- Construction spending is the amount that businesses spend to
build new offices or factories. Spending for September is expected to fall
- The National Association of Purchasing Managers releases a monthly
report compiled from surveys of purchasing managers from 20 industries on
manufacturing activity. Wall Street expects the index to increase to 43.9
percent for January from 43.7 percent last month. Analysts interpret index
values of more than 50 percent as evidence of an expanding economy, while a
less than 50 percent number indicates contraction.
- Nonfarm Payrolls represents the change in total non-farm
employment. This number is expected to fall by 100,000 for January.
- Unemployment rate is the percentage of unemployed adults, as
estimated monthly by the Labor Department. This number is expected to rise
to 4.1 percent for January, from 4 percent.
- Hourly earnings are the percentage change in hourly earnings in the private sector as estimated monthly by the Labor Department. This number is expected to be 0.3 percent for the month of January.