Analyst Michael Masdea says Intel noted the first quarter is tracking seasonal, with a small (1%) negative impact from excess fourth-quarter inventory build that occurred in Asia/Pacific and Japan. He thinks the weakness stems largely from original equipment manufacturers' overbuild in notebooks.
Masdea trimmed the 27 cents first-quarter earnings per share estimate to 26 cents, and trimmed the $8.25 billion revenue estimate to $8.1 billion. He thinks the enterprise pick-up is likely to remain slow and steady throughout 2004; this could mean some of the enterprise strength expected in 2004 could fall in to 2005.
He cut the $1.20 2004 earnings per share estimate to $1.15, but upped the $1.12 2005 estimate to $1.30. He also cut the $36 target to $33, and maintains the outperform rating.