ARCO <ARC> UP ON HIGHER EARNINGS ESTIMATE
Atlantic Richfield Co's stock rose
sharply after analyst Eugene Nowak of Dean Witter Reynolds Inc
raised his earnings estmates of the company, traders said.
    ARCO jumped 1-3/4 to 81-3/4.
    Nowak said that based on an average oil price of 17 dlrs a
barrel in 1987, the company should earn about 4.50 dlrs a
share. Next year, based on an average oil price of 18 dlrs a
barrel, ARCO should earn about five dlrs a share. The company
earned 3.38 dlrs a share in 1986. "If oil prices should rise to
an average of 20 dlrs a barrel," he said, "ARCO could record
earnings of 6.50 dlrs a share.
    Nowak said his increased estimates come after the company
told analysts yesterday that its first quarter earnings will
comfortably cover its quarterly dividend requirement of one dlr
a share.
    Nowak said, "The company has done an outstanding job
reducing expenses, and ARCO is poised to generate greater
earnings power." He said first quarter earnings will likely
exceed the company's expectations stated yesterday and be in
the 1.15-1.20 dlr-a-share range.
 Reuter
