Business Briefs

Mar 25, 2002  •  Post A Comment

AOL Time Warner outlook downgraded
Lehman Brothers analyst Holly Becker dealt what could be the first of many new blows to AOL Time Warner’s conservative full-year financial targets by lowering her first-quarter and full-year estimates due to the continued weakness in AOL division advertising. AOL Time Warner stock, already down 40 percent in the past year, fell another 5 percent on the news to $25 a share. Ms. Becker cut full-year estimates on revenues to $41.4 billion, up 5.6 percent from 2001, and cash flow to $10 billion, up 7.3 percent from a year ago. She also cut first-quarter estimates to $2 billion in cash flow, up 1.6 percent from a year ago, on flat revenues of $9.4 billion. The culprit: a 40 percent decline in the AOL Internet division’s first-quarter ad revenues to $535 million.
Gemstar stock down with bad news
Gemstar-TV Guide International stock languished last week after the company announced weaker-than-expected quarterly results and the unexpected resignation of Co-President and Co-Chief Operating Officer Peter Boylan. The stock price was down 26 percent for the week at Thursday’s close. The Pasadena, Calif.-based interactive TV guide firm reported a wider-than-expected fourth-quarter net loss of $210.2 million, or 51 cents a share, on a 3 percent decline in revenues to $346.4 million. It said it would take up to a $5 billion write-down for amortization of good will.