GST Telecom (GSTX) 4th quarter earning Message Board

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Technology Stocks : GST Telecom (GSTX) 4th quarter earning

GSTX 0.0200

+39.9%

Nov 24 11:36 AM EST

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To: MangoBoy who wrote (205)	10/13/1999 9:58:00 AM
From: SteveG	of 369

CSFB - Doughty: Summary GST has lowered its guidance for third quarter revenues and EBITDA. Correspondingly, we have cut our 3Q revenue and EBITDA estimates to $90 million and $9.3 million from $125 million and $47 million, respectively. For the year, we forecast revenues of $300.8 million and EBITDA of $90,000 In addition, we are also reducing our access line install estimate for the third quarter to approximately 30,000 lines from 35,000. According to the company, the shortfall is due to the impact of the previously announced divestiture of the company's Guam and GST Home assets. In addition, revenues were negatively impacted by construction delays that shift the recognition of revenue derived into subsequent periods. Further, the company stated that revenues from stand-alone long distance and off-net wholesale private line services would be lower than previously forecast. As a result, we have revised our 3Q and year-end EPS loss estimates to $1.03 and $5.11 from $1.25 and $5.22, respectively. Despite the short-term problems that the company is facing, we maintain our Buy rating based on our DCF valuation and the company's attractive western footprint and would use any further weakness as a buying opportunity. Price Target Mkt.Value 52-Week 09/22/991 (12mo.) Div. Yield (MM) Price Range 7.34 $23 $273.8 $17.25-3.69 Annual Prev. Abs. Rel. EV/ EBITDA/ EPS EPS P/E P/E EBITDA Share 12/99E (5.11) (5.22) $(0.03) 12/98A (5.34) $(2.32) March June Sept. Dec. FY End 1999E $(1.46)AE $(1.30)A $(1.03)E $(1.41)E Dec 31 1998E $(1.17)A $(1.36)A $(1.32)A $(1.49)A ROIC (6/99) (2.2%) Total Debt (6/99) $1.2 bil Book Value/Share (6/99) WACC (6/99) 10.8% Debt/Total Capital (6/99) 123.2% Common Shares 37.3 mil EP Trend2 Positive Est. 5-Yr. EPS Growth Est. 5-Yr. Div. Growth 1On 09/22/99 DJIA closed at 10823.9 and S&P 500 at 1335.53. 2Economic profit trend. GST Telecommunications is a competitive local exchange carrier (CLEC) that competes with the incumbent local exchange carriers (ILECs) in the western United States. The company provides a full range of integrated telecommunications services to small and medium-sized businesses and residential customers.

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