Reston, Va. ? Wireless provider Nextel Communications Inc., which has agreed to be acquired by Overland Park-based Sprint Corp., reported a 26 percent drop in fourth quarter earnings on higher tax expenses Thursday but still beat Wall Street estimates.

Nextel also projected lower 2005 adjusted earnings. Sprint hopes to close its deal with Nextel this year.

The Reston, Va.-based company reported a $232 million income tax provision in the fourth quarter, nearly $200 million more than the tax liability in the year-ago quarter.

As a result, the company earned $468 million, or 41 cents a share in the just-completed quarter, compared to a $631 million, or 55 cent per share, profit in the year-ago quarter.

The 41 cent per-share earnings, beat the estimate of analysts, who predicted 39 cents.

The company added 955,000 subscribers in the quarter, including 595,000 to its flagship Nextel brand and 360,000 to its prepaid Boost Mobile Service.