Live Headline
27-Sep-02
Corning (GLW) 1.53 -0.12: In light of SBC's capex warning last night (cut est to $5-6 bln from $7-8 bln), CSFB lowers their 2003 capital spending outlook for the wireline group to down 15-20% y/y from down 5% y/y and cuts GLW 2003 ests to $3.4B sales and ($0.16) EPS from $3.7 bln and ($0.14) EPS. Firm believes SBC's announcement highlights the vulnerability of RBOC budgets which have so far held up better than those of CLECs or IXCs; notes that GLW has the largest exposure in this area, with a majority of its North American sales (1/2 of volumes) destined for RBOCs' access networks. CSFB maintains their Underperform rating and lowers their price target to $1 from $3.