) from peer perform from outperform.
Analyst Matt Sheerin downgrades because he no longer believes shares will outperfrom its group. He says so-called "premium services" are expected to be down signficantly next quarter and be very choppy going forward.
Additionally, he thinks the management team will be severely tested over the next few quarters as it manages several moving parts, including ongoing capacity expansion. He believes earnings will remain depressed well into fiscal 2006, barring any huge demand or substantial industry consolidation.
Sheerin cuts 12 cents fiscal 2005 (ending May) earnings per share estimate to a 15-cent loss and 57 cents fiscal 2006 earnings per share to 14 cents.