Markets & Finance

JP Morgan Cuts EPS Estimates for Intel

JP Morgan cut its earnings estimates for Intel (INTC), and maintained its long term buy rating.

Analyst Eric Chen says he believes the second quarter will be more sluggish than thought due to aggressive price cuts and channel inventory as well as channel confusion. The combination of two price cuts in April and May will likely lower list prices of current Pentium 4 product lines by roughly 50%, he says. Channel checks in Asia indicate that PC sell-through is not as good as expected, he says. He believes there is a fair amount of product confusion as customers await new products.

Chen cut his $6.88 billion second quarter revenue estimate to $6.43 billion, and his $0.14 EPS forecast to $0.11. His $0.69 EPS estimate for 2002 was reduced to $0.60.

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