EarthLink trims outlook

ISP posts huge gain in quarterly profit but forecasts revenue below analysts' expectations in current period.
Written by ZDNET Editors, Contributor
EarthLink on Thursday posted higher third-quarter profit, helped by subscriber growth to its Internet service, but forecast revenue below analysts' consensus target for the current quarter.

The fourth-largest U.S. Internet service provider posted a quarterly profit of $37.6 million, or 24 cents a share, up from $3.5 million, or 2 cents a share, a year ago.

Analysts were expecting profit of 21 cents a share, according to the consensus estimate compiled by Reuters Estimates.

Quarterly revenue slipped 1 percent from a year ago to $344 million.

Earthlink said it added 67,000 subscribers in the quarter and had 5.4 million paying subscribers as of Sept. 30.

The company forecast that total revenue would be in the range of $340 million to $345 million in the current fourth quarter. That's below analysts' average target of $356.5 million, according to Reuters Estimates.

It forecast fourth-quarter net income of $30 million to $35 million, on anticipated subscriber growth of 35,000 to 75,000 during the three-month period.

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