Earnings Carry Nextel Higher
Nextel Communications' bank debt ran up about two points and then settled back down as "B" and "C" pieces traded between 95-96 after the company earnings report signaled a strong year ahead. "They just reiterated what they've been telling people for the last two months," noted one buysider, adding that there was no bad news. The paper settled in the 94 1/2 95 1/2 context after a number of investors selling on the way up put pressure on the price. The tremendous supply will limit how far this one can trade up, noted one dealer.
The company reported a domestic EBITDA of $3.13 billion, which marks an increase of about 67% in 2002 compared to 2001. Going forward, the company projected strong results in 2003 as well, estimating more than $3.8 billion of EBITDA. Net subscribers were a little low but they were offset by a low churn rate for the company's services, commented one dealer. Paul Saleh, Nextel's cfo, could not be reached by press time.