Shares in Lucent Technologies, fell more than six per cent on Monday following concerns that its revenue growth may fall short of analysts? expectations.
The telecoms equipment manufacturer?s stock crashed by $4.1875 at the close of trading on Nasdaq to $59.4375, after Truc Do, an analyst at Soundview Technology Group, downgraded his rating from hold to buy.
He said the firm may not achieve its projected 20 per cent sales growth for fiscal 1999, but may languish in the mid teens instead.
As a result, he trimmed his earnings estimate to $1.15 per share from $1.16 and cut his 2000 estimate to $1.35 from $1.40. The First Call analysts? consensus predicts Lucent will turn in $0.15 per share for its second fiscal quarter, the results of which are due to be announced on 22 April.
Separately Lucent said it had received antitrust clearance from the US Department of Justice for its proposed takeover of Ascend Communications.
The merger, which was announced on 13 January, is expected to be completed in the quarter ending 30 June, pending the approval of Ascend shareholders.
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