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Technology Stocks : Lucent Technologies (LU) -- Ignore unavailable to you. Want to Upgrade?

To: William Hunt who wrote (10653)	10/25/1999 2:51:00 PM
From: TechMkt	Read Replies (1) \| Respond to of 21876

LUCENT upgraded by AG Edwards. Fez

To: William Hunt who wrote (10653)	10/25/1999 6:11:00 PM
From: Maverick	Read Replies (1) \| Respond to of 21876

A.G. Edwards Lifts LU To Buy From Accumulate,$77 Target (NewsTraders.com)-- Lucent Technologies Inc. (LU), a maker of hardware and software for network operations, today received an upgraded from A.G. Edwards analyst David Heger, who boosted the stock to "buy" from "accumulate." Heger has a price target of $77 on the stock, which was recently changing hands higher by $2.63 at $59.00. Murray Hill, N.J.-based Lucent was in the news today with its board announcing a quarterly dividend of $0.02 per share. Further background on the brokerage move was not readily available.

To: William Hunt who wrote (10653)	10/26/1999 8:54:00 AM
From: Bindusagar Reddy	Read Replies (1) \| Respond to of 21876

Bill, LU comes out clean and STRONG. Here are some PW highlights -- 08:38am EDT 26-Oct-99 PaineWebber (Piecyk, Walter P. 212-713-4075) LU LU.N Lucent: Strong and Clean Q4 Results Telecom Equipment PaineWebber Walter Piecyk RESEARCH NOTE 212-713-4075/piecykw@painewebber.com William Choi, CFA, Analyst (212-713-2609) October 26, 1999 Joseph Galone, Associate Analyst (212-713-2860) Lucent Technologies Rating: Buy (LU-$56.44)(3) Lucent: Strong and Clean Q4 Results KEY POINTS * Lucent reported strong fiscal Q4 results this morning with EPS of $0.31 beating our $0.29 estimate. * Lucent posted $10.6 billion in revenue, easily exceeding our $10.3 billion estimate while improving day sales outstanding, a metric of receivables, by 3-5 days. * Revenue growth was driven by its System for Network Operators Segment, which posted over 30% growth. While international growth of the operator segment was nearly 60%, domestic growth was also strong at 20% * Total revenue growth of 23% was balanced with 17% US growth and 38% international growth. * $0.01 of the upside in EPS can be attributed to a reversal of a prior restructuring charge. * The balance sheet improved as inventory declined sequentially increasing turns to 4.5 from 3.7. * Lucent reported over $1 billion of operating cash flow in the quarter ($0.35 per share). * We believe this quarter's performance adequately addresses prevalent concerns on Lucent. We expect Lucent Day (November 11th) and the outlook on today's 11 AM conference call (800-230-1092) to be positive. * Price target of $100 implies 50x our 2001 EPS of $2.00. Lucent is NOT guiding down forward estimates. * We have attached a comparison table of Q3 results below. Key Data Quarterly Earnings Per Share (fiscal year ends September) 52-Wk Range $78-39 1998A 1999A Prev 2000E Prev Eq.Mkt.Cap.(MM) $178,294 1Q $0.39 $0.49A $0.54 Sh.Out.(MM) 3,159 2Q 0.09 0.17A 0.25 Float 83% 3Q 0.17 0.26A 0.34 Inst.Hldgs. 42.8% 4Q 0.21 0.31A 0.29 0.37 Av.Dly.Vol.(K) 6,385 Year $0.86 $1.22 $1.21 $1.50 Curr. Div./Yield $0.08/0.1% FC Cons.: NA $1.20 $1.51 Sec.Grwth.Rate 20% Revs.(MM): $31,806 $38,303 $44,970 12-mo. Tgt Price $100.00 P/E: 65.6x 46.3x 37.6x 12-mo. Ret. Pot'l 77.3% Convertible? No Risks: Financing capabilities, regulatory change, stability of foreign governments and exchange rate fluctuations. $US Billions except EPS Q4 '99A Q4 '99E Q4 '98A Growth Systems for Net. Ops. 6.917 6.638 5.257 31.6% Business Comm. Sys. 2.471 2.612 2.464 0.3% Microelectronic Prod. 0.991 0.981 0.811 22.2% Other sys. and Prod. 0.196 0.080 0.042 366.7% Total Revenues 10.575 10.311 8.574 23.3% Other includes Consumer products division $US Billions except EPS Q4 '99A Q4 '99E Q4 '98A Growth Sales 10.575 10.311 8.574 23.3% Gross profit 4.869 4.872 4.131 17.9% GP margins 46.0% 47.3% 48.2% SG&A 2.251 2.150 1.972 14.1% SG&A/Sales 21.3% 20.9% 23.0% R&D 1.131 1.281 1.050 7.7% R&D/Sales 10.7% 12.4% 12.2% Operating income 1.487 1.441 1.109 34.1% OI margins 14.1% 14.0% 12.9% NIBT 1.465 1.402 0.995 47.2% NIBT margins 13.9% 13.6% 11.6% Net Income 0.972 0.925 0.647 50.2% Reported EPS $0.31 $0.29 $0.21 47.6%