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Technology Stocks : AT&T -- Ignore unavailable to you. Want to Upgrade?

To: Walter Morton who wrote (3079)	11/5/1999 1:43:00 PM
From: Captain Jack	Respond to of 4298

Some VERY GOOD news on a down day for T,, great for nearly everything else.. BOCA RATON, Fla., Nov 5 (Reuters) - AT&T Corp. Chairman and Chief executive C. Michael Armstrong on Friday said he expects the telecommunciations giant to meet wall street's 1999 profit expectations on 6 percent revenue growth. Speaking at the annual meeting of the Securities Industry Association here, Armstrong said he expects AT&T to show cash earnings per share somewhere in the range of analysts forecasts, which he pegged at $2.43 to $2.48 per share. Cash earnings are generally defined as after-tax income that excludes any negative effects of goodwill amortization. The chairman also said that on the flight to the meeting he had calculated that if AT&T's cash EPS came in at the middle of the range, or about $2.45, that AT&T's stock would be trading at a multiple of 25 to that figure at its current price. Armstrong said other telecomunications companies in AT&T's peer group are trading at about 48 times cash earnings. If AT&T were to trade at that level, he said, "it (the share price) ought to be 62. Maybe this crowd can help us with that." AT&T shares were down 9/16 at 47-3/8 in mid-afternoon trading on the New York Stock Exchange. Looking forward, Armstrong said he expects an average of 10 to 12 percent revenue growth in the five year period from 2000 through 2004, and for earnings before interest, taxes, depreciation and amortization, or EBITDA, to grow at a rate ranging from the low to the high teens over the same period. REUTERS * end of story *