Goldman Trims BellSouth, Verizon Estimates

Analyst Frank Governali notes the wireless and wireline businesses are in a tough, competitive spot

Goldman Sachs cut its estimates on BellSouth (BLS ) and Verizon (VZ ).

Analyst Frank Governali says BellSouth's weaker outlook reflects general pressure on the entire group. He says BellSouth cut its guidance, which the company issued only a month ago, on a poor demand outlook and a tough, competitive position in its wireless and wireline businesses. Given the graver weakness than he anticipated, Governali cut his $2.16 2002 BellSouth earnings per share estimate to $2.05, and trimmed the $2.20 2003 earnings per share estimate to $2.10.

Governali also cut Verizon's 2002 estimate by $0.05 to $3.00, and cut the 2003 earnings per share estimate by $0.05 to $3.05. He rates BellSouth and Verizon as market outperform.