SBC Seen With Strong Wireless, DSL Adds
01.24.05, 11:10 AM ET
Morgan Stanley reiterated an "overweight" rating and $26 target price on SBC Communications (nyse: SBC - news - people ), saying fourth-quarter results should show continued line loss to wireless. The research firm raised its fourth-quarter earnings-per-share estimate to 33 cents from 29 cents, bumping up the full-year estimate to $1.45 from $1.42. "We expect fourth-quarter revenue to increase 3.1% year-over-year but to be essentially flat with the third quarter," Morgan Stanley said. The research firm said it expects to see lower local voice revenue, offset by growth in data as SBC continues to add DSL subscribers. "We expect DSL adds to remain strong in the fourth quarter at 430,000, up from 402,000 in the third quarter," the research firm said. Morgan Stanley expects Cingular Wireless, SBC's joint venture with BellSouth (nyse: BLS - news - people ), to report 1,160 adds for the quarter, as well as an improvement in its share of industry adds from 18% in the third quarter to 22% in the fourth quarter, second to the 28% share held by Verizon Wireless, which is a joint venture between Verizon Communications (nyse: VZ - news - people ) and Vodafone (nyse: VOD - news - people ).
forbes.com |
