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Technology Stocks : Qwest Communications (Q) (formerly QWST) -- Ignore unavailable to you. Want to Upgrade?

To: Scotsman who wrote (2606)	12/30/1998 4:14:00 PM
From: David Lawrence	Read Replies (2) \| Respond to of 6846

RESEARCH ALERT - Qwest (NASDAQ:QWST) EPS view lowered NEW YORK, Dec 30 (Reuters) - Merrill Lynch said Wednesday it has lowered its fourth quarter 1998 and full year 1999 earnings estimates. -- said cut the fourth quarter earnings per share estimate on core operations to a loss of $0.08 from a loss of $0.05 a share. -- said cut the fourth quarter reported earnings per share estimate, which includes dark fiber sales, to $0.03 a share from $0.05 a share. -- said cut the 1999 estimate for core operations from $0.27 to $0.08. The 1999 reported earnings estimate, including dark fiber sales, was cut to $0.20 a share from $0.33. -- cited Qwest's addition of about $1.1 billion in debt. The debt issues will add $80 million in interest expense and lower 1999 earnings per share by $0.13. -- also cited Qwest's recent joint venture with KPN. Qwest will put its European Internet service provider, EUnet, into the joint venture. The loss of EUnet on the income statement will lower Qwest's revenues by about $130 million in 1999 and EBITDA by $20M. Said it expects Qwest to see $10 million in non-taxable below-the-line income from its 50 percent interest in the joint venture. -- said expects Qwest to close its acquisition of Internet services company ICON CMT Corp. following a shareholders' vote on Dec 31. If approved, Qwest will be able to consolidate ICON's December revenues of about $5 million to $6 million into its fourth quarter total. In 1999, expects ICON to add about $100 million in revenue, almost making up for the $130 million revenue loss from EUnet. -- said had expected the ICON deal to close in November. Said lowered its fourth quarter revenue forecast to $670 million from $682 million due to the one-month delay in closing ICON and due to lower-than-expected wholesale revenue. -- said raised its fourth quarter selling, general and adminstrative expense forecast by $7 million to $187 million as a result of Qwest's accelerated retail roll out and the addition of over 200 new salespeople. -- shares of Qwest fell 1-5/8 to 47-7/8. Copyright 1998, Reuters News Service