Robbies Stephens Cuts Nortel Outlook
Robertson Stephens cut estimates on Nortel Networks (NT ).
On Friday the company forecast a $0.48 Q2 loss per share from operations as well as a net loss including charges of $19.2 billion. Analyst Paul Silverstein significantly lowered his expectations over the near-term to intermediate-term range given the prevailing downturn in the U.S. economy in general and in carrier capital spending in particular. Silverstein says the company also cited the risk of a further decline in Asian and European markets. Although he believes Nortel's business may show further deterioration in the next several months, he does not believe cash is the issue.
Silverstein widened the $0.05 loss estimate to a $0.22 loss. He cut the $0.05 2001 loss estimate to a $0.55 loss. He maintains his market perform rating.