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RESEARCH ALERT-Robertson cuts H-P
estimates
SAN FRANCISCO, Oct. 27 (Reuters) - Robertson Stephens analyst
Dan Niles said he cut his earnings estimates on Hewlett-Packard
Co., citing major issues in the company's UNIX workstation business
and sluggish corporate PC demand.
-- Niles cut H-P's fourth quarter estimates to 73 cents a share, versus 82 cents previously. He also
estimates that revenue growth in the fourth quarter, ending October, will be closer to seven percent
year-over-year, instead of the 10 percent growth the company is forecasting.
-- Niles cut H-P's fiscal 2000 estimates to $3.20 a share from $3.30 previously, citing a possible
slowdown in spending due to Y2K concerns by corporate customers.
-- ''We believe UNIX is having major issues in the quarter,'' Niles said, adding that the company is still
having sales force problems and some Y2K issues are starting to develop.
-- He also forecast that H-P's PC business, which grew 28 percent in the July quarter, will likely grow in
the mid- single digits in the October quarter, around five percent.
-- ''Consumer demand is great, but corporate desktop demand is horrible,'' Niles said. ''My suspicion is
that it's Y2K related. We believe Q1 will also be challenging.''
-- H-P shares were off 5-1/2 to 71-1/8. |
