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

To: Calvin who wrote (5669)	1/21/1999 9:00:00 AM
From: William Hunt	Read Replies (2) \| Respond to of 21876

THREAD ---AN ANALYSIS of LU earnings and going forward from briefing .com --UCENT TECHNOLOGIES (LU) 115 1/2. One of Briefing.com's long-term core portfolio candidates posts good numbers and gives a positive view of the future. Before the open Thursday, telecommunications equipment maker Lucent Technologies (LU) reported fiscal first quarter (Dec) operating profits of $1.05 per share. That was five cents above the average Wall Street forecast and 22% above (on a per share basis) the $0.86 of last year. More importantly, LU indicated that the outlook is excellent. They said the lower than expected revenue increase of 6% this quarter was due in part to certain revenues being pushed into the second quarter. LU said that revenues in January were off to a very strong start, and that for the second quarter, profits would come in at about $0.28 per share, double the 1998 level and above the current Wall Street expectation of $0.23 per share. They also said that revenues for the full year could grow 19% to 20%, and that profits could grow 35%. CEO McGinn said "Lucent's momentum has never been stronger." Those are pretty strong forward looking statements. Of course, the stock is already forward looking as well. LU has almost tripled since last January and has been on a steady rise. It trades at a lofty 55 times trailing earnings. But the company's business is strong, the assimilation of Ascend seems to be going well, and profit growth this year is apparently going to be greater than Wall Street had expected. LU stock may not get a short-term kick from the report this morning simply because it had risen sharply recently in anticipation of good results. There has been a tendency this earnings season for many stocks to back off even after good reports. However, Briefing.com is going to keep LU on our core list because even at these valuations, the continued profit growth remains impressive. BEST WISHES BILL P.S The 1.6 billion LU received from it pension liability is a big postive . That is a lot of cash to use for future needs ---plant moderzation ---new technology --etc