Sinclair Broadcast Group's stock dropped $1.44 in Nasdaq trading Friday to $9.06 at the close after company executives told analysts that 2001 revenue and broadcast cash flow will be lower than in 2000 - and well below Wall Street's expectations.
The company said 2001 revenue would fall by a high single digit percentage from $736 in 2000, while pro forma broadcast cash flow is expected to drop by a high teen percentage from $341 million last year. The projected declines are due to the economic downturn and higher programming payments, Sinclair said.
Both Morgan Stanley and Merril Lynch downgraded their investment rating on Sinclair after the broadcaster provided the revised outlook for 2001. - Steve McClellan