lowered its earnings and revenue expectations for
for the sixth time in 12 months, while
Standard & Poor's
cut their ratings on the communication equipment maker's debt to a notch above junk status.
In recent trading on the
New York Stock Exchange
, Lucent lost 29 cents, or 1.9%, to $15.07.
Lehman analyst Steven Levy expects sales to decline 24% for fiscal year 2001, which ends in September, a drop that would translate to a top line of $25.6 billion. Levy projected that Lucent will lose 67 cents a share for the year. For 2002, Lehman forecast that Lucent's sales would grow 20% to $30.7 billion, while the company should turn a profit of 22 cents a share.
"Until we see signs that Lucent has fundamentally bottomed, we continue to recommend that investors, not to be confused with short-term traders, stay on the sidelines and look for other ways to play the telecom equipment market," Levy said in his research note.
Analysts queried by
First Call/Thomson Financial
expect Lucent to lose 51 cents a share in 2001, but earn 27 cents a share in 2002. The company earned 93 cents in 2000.
A Lucent representative said the company would continue with the
restructuring plan announced on Jan. 24, which included significant job cuts.
Last week, a published report indicated that the
Securities and Exchange Commission
was investigating whether Lucent
improperly booked $679 million in revenue during the fiscal year ended Sept. 30, 2000. The company later said the SEC had made no charges of any kind regarding questionable accounting issues.