Explanation for today's action
Lucent CFO gave a presentation today.
Lucent Says It Will Meet Expectations for 2nd-Qtr Profit, Sales
Murray Hill, New Jersey, March 24 (Bloomberg) -- Lucent Technologies Inc., the world's biggest phone-equipment maker, said it expects to meet its estimates for fiscal second-quarter sales and earnings growth, boosted by strong demand.
Chief Financial Officer Donald Peterson, at a Merrill Lynch & Co. conference with investors in New York, reiterated the company's forecast that revenue for the quarter ending March 31 will increase by 30 percent and that profit will double to 28 cents a share.
Even so, some analysts and investors think Lucent's results may fall short, after fiscal-first quarter sales missed estimates by about $800 million because the company failed to complete some orders before the quarter closed. It was the first time Lucent has lagged forecasts, and some investors are worried that a repeat would cripple the stock.
''It would cast some doubt as to whether they can do what they say they're going to do,'' said Andy Hopkins, an analyst at Wilmington Trust Corp., which owns 1.43 million Lucent shares. ''That's never taken well.''
The average estimate of analysts polled by First Call Corp. reflects profit expectations of 29 cents a share. The estimates range from 24 cents to 32 cents.
Lucent shares fell 1 11/16 to 98 1/2. The stock fell 7.4 percent on Jan. 21, the day Lucent reported fiscal first- quarter results. |
