Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : America On-Line (AOL) -- Ignore unavailable to you. Want to Upgrade?

To: Vendit™ who wrote (26752)	7/24/1999 10:10:00 PM
From: Marvin Mansky	Respond to of 41369

Part 1: Subject: Analysis of Sales/Earnings Industry: Internet/New Media BEAR, STEARNS & CO. INC. EQUITY RESEARCH America Online, Inc. (AOL 115.06) - Buy AOL Chugging Along - Another Strong Quarter ______________________________________________________________________________ Data 52-wk Range $17-176 Shares Out 1,295 million Market Cap(MM) $149,006 ______________________________________________________________________________ Key Points * AOL reported a strong fourth quarter, with revenue of $1.38 billion, ahead of our estimate of $1.32 billion, and EPS of $0.13, ahead of both our estimate of $0.10 and First Call consensus of $0.11. * Subscriber growth of 755,000 was inline with our estimate, but at the low end of company guidance due to increased competitive pressures in the U.K. market. However, growth in North American subscribers was 31% stronger than in the year ago quarter demonstrating continued strong domestic demand. * AOL announced that it signed an agreement with Ameritech to roll out high- speed AOL service using DSL technology, AOL's third such agreement, giving it a U.S. footprint of 55 million homes under contract. * Due to the stronger than expected revenue growth, we are raising our revenue estimate for fiscal 2000 to $6.3 billion from $6.2 billion. We are also raising our EPS estimate to $0.60 for FY2000, up from our previous estimate of $0.56 *** We continue to recommend purchase of AOL shares with a Buy. AOL is synonymous with the online experience and is progressively adding new revenue streams and expanding operating margins. We continue to recommend purchase of the shares of AOL and view pullbacks as a buying opportunity. ______________________________________________________________________________ Earnings Estimates P/E Q1 Sep Q2 Dec Q3 Mar Q4 Jun Year Year 1998 $0.02A $(0.01)A $(0.01)A $0.05A $0.06A 1917.7x 1999 $0.05A $0.08A $0.09A $0.13A $0.35A 328.7x Previous $0.10E $0.32E 2000 $0.13E $0.14E $0.16E $0.17E $0.60E 191.8x Previous $0.12E $0.13E $0.15E $0.16E $0.56E ______________________________________________________________________________