Markets & Finance

Lehman Brothers Reduces Earnings Estimates for Dell and Intel


Lehman Brothers lowered earnings estimates for tech titans Intel (INTC) and Dell Computer (DELL).

Analyst Dan Niles thinks that by the end of the fourth quarter, both unit demand and pricing were more difficult than even the pre-announced expectations for the PC industry. Additionally, as Fortune 500 companies finalize information technology (IT) budgets for 2001, Niles believes growth will be 3%-5% below the current 10% forecast. Because of this -- and with PC channel inventory increasing -- the analyst cut his $1.40 2001 earnings per share estimate for Intel to $1.30, and his calendar 2001 forecast for Dell to from $1.10 to $1.00.

Niles offered a gloomy outlook, saying that it seems more aggressive pricing is not spurring much increase in demand, resulting in a trade-off between profitability and revenue growth for these tech leaders.


Video Game Avenger
LIMITED-TIME OFFER SUBSCRIBE NOW

Sponsored Financial Commentaries

Sponsored Links

Buy a link now!

 
blog comments powered by Disqus