Investors bracing for bad AOL news


Wall Street's media players are preparing for another round of bad news, this
time from AOL Time Warner, which is scheduled to issue an earnings forecast for
the year.

The Internet and media giant has scheduled a conference call for Monday (1/7)
at 5 p.m. EST, during which it plans to issue guidance.

Several analysts, anticipating bad news, have revised their earnings forecast

Morgan Stanley's Rich Bilotti and Mary Meek have trimmed expected 2002
cash-flow growth from 15% to just 8%.

Sanford Bernstein media analyst Tom Wolzien cut his 2002 estimate from $11.6
billion to $10 billion.

One continuing problem is ad sales at the Turner cable networks.

Bilotti sees the basic networks' total ad revenue dropping about $100
million, to $2.4 billion, despite ratings gains.

AOL wouldn't detail what new CEO Richard Parsons will disclose on the