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Technology Stocks : Qualcomm Moderated Thread - please read rules before posting -- Ignore unavailable to you. Want to Upgrade?

To: Maurice Winn who wrote (13357)	7/27/2001 1:40:20 PM
From: cfoe	Read Replies (2) \| Respond to of 196608

RE: Nextel - Interesting that there wasn't any mention of Nextel switch to 1X on the call - from anaylsts or management. From earningswhispers earlier this week – (cannot provide link): some interesting comments re: Nextel. One from Lehman is highlighted. Analysts are less unified in their expectations for Nextel (NXTL), but in general, the analysts seemed to be fairly pessimistic about Nextel's second quarter results. The consensus earnings estimate has decreased from a loss of $0.43 per share at the beginning of the quarter to its current estimated loss of $0.52. The low estimate, and one of the more recent estimates, is a loss of $0.62 per share by Michael Kim at Robertson Stephens. The high estimate is a loss of $0.41. Nextel has had at least ten consecutive quarters of increased revenues and, until last quarter, has met or exceeded consensus estimates for each of those quarters. Christopher Larsen at Prudential Securities told clients that Nextel "will continue its impressive string of meeting or exceeding our expectations." However, other analysts do not share Mr. Larsen optimism. John M. Bensche at Lehman Brothers lowered his price target last week from $32 to $21 (see analyst target summary) and said that Nextel has "weakening fundamentals, a heavily levered balance sheet, and a problematic upgrade strategy.” Furthermore, Mr. Bensche stated that Nextel's problems were company specific and not an industry concern. Part of the reason for the lowered earnings estimates over the past several weeks is a one-time restructuring charge of $18 million relating to a 5% workforce reduction. In addition, a further devaluation of the Brazilian Real will result in a large foreign currency hit. Many analysts have just recently added these items to their model and some estimates still do not include these items. Possibly more important than Nextel's earnings, and even the company's revenue, will be Nextel's net added subscribers. The consensus estimate appears to be 490,000. Look for Nextel to beat this by up to 10,000 new subscribers. The Earnings Whisper ® number is a loss of $0.55. The consensus revenue estimate is $1.8 billion while the revenue whisper is slightly higher at $1.86. Both revenue projections represent another sequential increase in revenue. --- If Nextel's upgrade strategy is "problematic" what is AWE's? Herculean?