WorldCom Fell 41% Last Week

WorldCom

(WCOM)

fell almost 41% for the week in the midst of a telecom meltdown after the company lowered its revenue and cash flow targets early in the week and then missed first-quarter estimates. The company said it now expects full-year revenue of $21 billion to $21.5 billion, below analyst estimates of $22.2 billion, and EBITDA of $7 billion to $7.5 billion, below estimates of $8 billion. Then on Thursday, WorldCom missed with its first-quarter earnings, posting net income of $274 million, or 9 cents a share, below analyst estimates of 11 cents. Several analysts downgraded the stock, even as head Bernie Ebbers tried in vain to convince skeptical investors that the company could generate $1 billion in free cash flow by year's end.