SBC Communications Sees 2001 Earnings Growth Below Estimates

SBC Communications(SBC Quote) expects earnings per share growth for 2001 of 11% to 14%, slightly below Wall Street's expectations of 14.5% for the year.

The projection would translate to earnings of $2.52 to $2.59 a share for 2001, short of the $2.60 a share analysts expect. The company earned $2.15 in 1999, and Wall Street expects earnings of $2.27 this year.

The telecommunications company said the figures for 2001 reflect the slowing national economy, regulatory processes that have delayed long-distance offerings, service issues at its Ameritech unit and a late start in the installation of neighborhood broadband gateways.

The company also reaffirmed its earnings forecast for the fourth quarter of 56 cents to 58 cents a share. Analysts are calling for earnings of 58 cents a share. The company earned 54 cents in the year-ago period.

Shares of SBC dropped $7, or 13.1%, to $46.31 in recent New York Stock Exchange trading.