) to neutral from buy.
Analyst Jason Avilio says first-quarter results beat his estimates, with the mobile business clearly driving outperformance, and the search business coming in weaker than expected.
He was disappointed with second-quarter guidance of 2% to 5% sequential drop in revenues, particularly given the strong growth exhibited in the mobile data market. He says he's now less confident the company can achieve its full-year goals (which include a forecast of $1.75 to $1.95 earnings per share).
Avilio cuts his 41 cents second-quarter earnings per share on $91.5 million revenue estimate to 36 cents earnings per share on $84.9 million revenue, and his $1.84 2005 earnings per share on $388 million revenue to $1.79 earnings per share on $375 million revenue.