was lately inching up 13/16 to 52 13/16 after an earnings warning yesterday sent the stock reeling in after-hours trading.
shocked Wall Street when it announced it expects first-quarter earnings to fall below estimates. The telecommunications-equipment giant attributed the shortfall to flat revenue growth caused by changes in customer purchasing habits, lower software revenue and lower-than-expected gross margins. The company said it expects to report earnings in the range of 36 cents to 39 cents a share, compared with 48 cents a year ago. The 29-analyst estimate from
First Call/Thomson Financial
was for 54 cents. Lucent said it expects revenues to be in the range of $9.8 billion to $9.9 billion, flat with the year-ago period.
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The expected shortfall marked a sharp departure from the company's excellent earnings track record. Until now, Lucent has beat earnings forecasts in every quarter since it was spun off from
in 1996. Further,
decision yesterday morning to up the stock's target price to 95 from 90 looked like an odd move by late afternoon. Today, a number of firms announced ratings or earnings estimate changes on the stock.
This morning, Lehman downgraded the stock, as did
Salomon Smith Barney
cut Lucent to near-term neutral from accumulate but maintained a long-term buy rating, while
cut the stock to neutral from buy.
Credit Suisse First Boston
cut its first-quarter EPS view to 36 cents from 55 cents.
For additional coverage of Lucent's earnings
warning, check out a separate story from the
joint newsroom. Also see
past coverage of
Lucent, including an in-depth look at the company's
Mergers, acquisitions and joint ventures
popped 3 3/8, or 6%, to 59 15/16 after it said it is selling its
Private Radio Systems
Com-Net Critical Communications
of Pennsylvania for an undisclosed sum.
, rose 7/16 to 53 after it said it is buying
, a data communications provider, for about $1.7 billion in stock. Shares of Splitrock sailed up 4 5/8, or 21%, 26 5/8.
added 1/8 to 48 13/16 after its
Universal Music Group
set a strategic pact which will enable digital music from Universal's collection of artists to be played on RealNetworks'
. Under the pact, UMG and RealNetworks will team up in online and offline digital music marketing activities. Shares of RealNetworks jumped 11 3/4, or 10.4%, to 124 3/4
U S West
slipped 3/16 to 64 15/16 after saying it has taken a minority equity stake in Internet services concern
is going hard core into e-tailing. Wal-Mart and Silicon Valley-based venture capital firm
said they're joining forces to form
, a Palo Alto, Calif.-based, independent concern that they intend to take public. Shares of Wal-Mart rose 1 3/4 to 65 3/8.
lost 1 1/16 to 24 11/16 after
Warburg Dillon Read
cut its rating to hold from strong buy citing competitive concerns.
Merrill raised its price target on
to 80 from 60.
Deutsche Banc Alex. Brown
started coverage of three Internet healthcare companies.
rose 1 1/4 to 31 13/16 after it was rated buy with a price target of 43.
gained 7/16 to 34 1/2 after it was rated a buy with a price target of 42 and
popped 1 5/8, or 10.5%, to 17 1/4 after it was rated a strong buy with a price target of 30.
raised its rating on
to hold from sell. Shares added 1/2 to 72.
Morgan Stanley Dean Witter
raised its rating on
to strong buy from outperform and set a price target of 50 on the stock. Dynegy inched up 49/64 to 28 7/8.
climbed 3/4 to 87 1/8 after
started coverage with a buy rating.
Warburg Dillon Read
initiated coverage of
with a hold rating. Shares lost 1 1/2 to 45 3/4.
to market outperformer from its recommended list.
Morgan Stanley Dean Witter upgraded Germany's
to outperform from neutral. SAP hopped 10 3/4, or 24%, to 55 1/2.
upped its rating on
to attractive from neutral.
raised its fourth-quarter earnings estimates to $1.08 from 88 cents. Tiffany tacked on 3 13/16 to 80 13/16.
to intermediate-term neutral from accumulate. Merrill kept its long-term rating at buy. Weyerhauser slipped 1 7/8 to 72 1/4.
were sliding 12 13/16, or 23%, to 43 1/4 on no particular news whatsoever.
climbed 5/16 to 33 1/2 after it named John Pleasants president.
The Inside Wall Street column in
this week spotlights
, whose stock could be hot soon because the company is poised to unveil a variety of Web-enabling and Linux storage server products and because a major PC maker is said to be in talks to buy
36% stake in the company. Maxtor is a hard disk drive provider for PCs. Shares of Maxtor climbed 15/16, or 13.3%, to 8.
Two other stocks garner bullish mention in the column:
True North Communications
, the world's sixth-largest ad agency, and
, which some analysts say is undervalued. True North added 7/8 to 43 1/8, while shares of @plan added 1/2 to 12 5/8.