Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Markets & Finance

Goldman Sachs Downgrades Marconi on Earnings Warning


London-based telecom equipment maker Marconi (MONI) warned that fiscal year 2002 operating profit will be 50% below year ago levels on a 15% sales decline. Goldman Sachs downgraded the stock to market underperform from market perform. Other telecom equipment stocks, such as Alcatel (ALA) and Cisco Systems (CSCO), fell on the news.

Goldman analyst Eiji Aono says that the news is stunning for two reasons: First, the size of the warning; Second, the extraordinary way in which the warning was (mis)handled. He notes that MONI's shares were suspended all day yesterday (7/4) in London, awaiting a press release, while the shares in the rest of the UK and European tech sector took a hit instead. He cut his FY 02 EPS estimate by 64% and his FY03 estimate by 57%.


LIMITED-TIME OFFER SUBSCRIBE NOW
 
blog comments powered by Disqus