Scientific-Atlanta shares advance
Analyst ups 1999, 2000 earnings estimates
By David B. Wilkerson, CBS MarketWatch
Last Update: 5:22 PM ET May 11, 1999
Cable TV Index
Media Report
ATLANTA (CBS.MW) -- Shares of set-top box maker
Scientific-Atlanta rose 4.2 percent Tuesday after SoundView
Telecommunications analyst Truc Do upped his fiscal 1999 and 2000
earnings estimates on the company.
Do raised his fiscal 1999 forecast to 73 cents per
share from 71 cents, and his 2000 view to $1.19
from $1.15. He maintained his "strong buy"
recommendation on the shares.
Scientific-Atlanta (SFA: news, msgs) shares rose 1
to 33 7/8 The stock is just short of its 52-week
high of 35, set Feb. 24.
The analyst told CBS.MarketWatch.com he sees
"increased demand" for digital set-top boxes, along
with "interesting interactive applications that ... will
drive set-top deployment even further."
Do also said Time Warner (TWX: news, msgs) is "well-prepared" to roll
out set-top-box based services nationwide, which bodes well for
Scientific-Atlanta.
Scientific-Atlanta and rival General Instrument (GIC: news, msgs) are also
viable takeover targets for "given that cable broadband technology is
becoming the key cornerstone" companies like AT&T (T: news, msgs)
and Microsoft (MSFT: news, msgs).
Scientific-Atlanta's boxes can or will soon be used by cable operators to
offer such services as video-on-demand, online shopping, e-mail,
enhanced broadcasting, targeted advertising, Web browsing and home
networking, as well as traditional cable television.
On Monday, the company announced a video-on-demand pact with
privately-held SkyConnect. Financial terms weren't disclosed. |
