Here's your NTAP's warning...
DJ Network Appliance Dn-2: Pre-Announcement Likely-Analyst
15 Mar 16:39
By Donna Fuscaldo
Of DOW JONES NEWSWIRES
NEW YORK (Dow Jones)--Shares of Network Appliance Inc. (NTAP) fell Thursday
after the company's earnings estimates were trimmed by one investment firm
while another issued cautious comments.
Earlier Thursday, J.P. Morgan Chase Inc. analyst William Lewis reduced his
estimates on the data storage server maker to factor in a "worst-case"
scenario.
The analyst, who maintained his buy rating on the company's stock and called
it his "favorite," now expects the company to post fourth-quarter earnings of
10 cents a share and revenue of $300 million.
He had previously forecasted earnings of 11 cents a share and revenue of $320
million.
Prudential Securities Inc. analyst Kimberly Alexy issued a research note
Thursday, saying Prudential hosted a series of meetings with Network Appliance,
and even though the company's management didn't lower its official guidance,
there is "clearly increased risk to this outlook."
According to Alexy, Network Appliance management acknowledged longer sales
cycles in the U.S. and more recently in Europe.
"We believe an official pre-announcement is likely but not until management
is able to appropriately quantify the outlook," wrote Alexy. "While we believe
the stock will remain choppy until visibility improves, we continue to believe
that investors with a 12 to 18 month view, will be rewarded for purchase at
these levels."
Shares of Network Appliance closed down 11.5%, or $2.44, to $18.75 on volume
of 15.3 million. Average daily volume is 13 million.
Company officials weren't immediately available for comment.
-By Donna Fuscaldo, Dow Jones Newswires; 201-938-5253
donna.fuscaldo@dowjones.com
(END) DOW JONES NEWS 03-15-01
04:39 PM |
