RESEARCH ALERT-Chase sees Dell as next to warn
NEW YORK, Dec 13 (Reuters) - Chase Hambrecht & Quist said on Wednesday that Dell Computer Corp. <DELL.O>, the world's No. 2 personal computer maker, may be the next to issue a financial warning on its fourth-quarter results, joining several key rivals.
Chase analyst Walter Winnitzki said in a note to clients, entitled "Next in Line on the Preannoucement List," that business conditions had changed for the worse since Dell last provided financial guidance to analysts on Nov. 10.
Winnitzki cut his fourth-quarter sales estimate by $450 million to $8.4 billion, representing growth of 24 percent year to year and sequential growth from the third quarter of only 2 percent.
He said that with industry pricing pressures growing, he reduced his earnings-per-share forecast for the fourth quarter ended in January to 23 cents from 26 cents.
The analyst said that, while the market may have already discounted an earnings miss into Dell's stock after warnings of lower results from Compaq Computer Corp. <CPQ.N>, Gateway Inc.<GTW.N>, Intel Corp. <INTC.O>, Advanced Micro Devices Inc. <AMD.N>, and Apple Computer Inc <AAPL.O>. Dell faces greater exposure to the slow growing desktop PC sector and challenges in the corporate equipment market, especially in Europe.
09:00 12-13-00 |
