RESEARCH ALERT-Lehman cuts Intel EPS views
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NEW YORK, April 18 (Reuters) - Lehman Brothers on Wednesday
said it cut its financial year earnings estimates for Intel
Corp. through 2002, after the world's No. 1 chip maker
reported a steep drop in first-quarter net income.
The brokerage shaved its 2001 earnings view to 55 cents
from 65 cents a share and cut its 2002 view to 65 cents from 70
cents a share.
"Though Q1 results were generally in line, the real story
is Intel's statement that the processor business stabilized in
March, but that operating margins will be driven to 14 percent
in Q2 versus 34 percent a year ago to help generate that
demand," Lehman said in a research note.
Lehman Brothers said the question of whether a pickup in
demand is related to a replenishment of inventory or an
increase in end demand will only be solved with time.
On Tuesday, Intel said its net income dropped 82 percent to
$485 million, or 7 cents a diluted share, compared with $2.7
billion, or 39 cents a share in the year-ago period, but said
it sees a stronger second half. The company said it believes
its microprocessor business -- 80 percent of the company's
sales -- has stabilized.
Shares of Intel closed at $26.04 on Tuesday on Nasdaq, near
the low end of the 52-week range of $22.25 to $75.81.
REUTERS
Rtr 08:56 04-18-01 |
