Markets & Finance

Bank of America Trims Forecast for Intel

Bank of America Securities cut its earnings estimates for chipmaker Intel (INTC).

Analyst Douglas Lee says checks with motherboard vendors and channel participants in Taiwan reveal that visibility into March and beyond has weakened. In addition, he says processor supply also began to loosen towards end of January, which suggests processor pricing could come under some presure. He thinks it's likely that second quarter processor shipments will exhibit normal seasonality (mid-to-high single digit sequential decline). He notes this seasonality has not been factored into Street estimates.

Lee trimmed EPS estimates to $0.12 from $0.14 for the June quarter and to $0.16 from $0.18 for the September quarter. He cut his $0.69 2002 EPS estimate to $0.65, and he sees $1.07 EPS in 2003. He kept a buy rating on the shares.

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