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RESEARCH ALERT-ABN Amro cuts McDATA 2001-2002 earns outlook
NEW YORK, Oct 18 (Reuters) - ABN Amro said on Thursday it has cut its 2001-2002 earnings forecasts for McDATA Corp. (NasdaqNM:MCDT - news), a maker of switches and software for data storage companies, citing conservative guidance from management.
ABN said it cut its fourth-quarter earnings per share forecast to nil from 4 cents per share. It also cut its 2002 earnings per share forecast to 23 cents from 30 cents.
``Despite admirable third-quarter results, McData's outlook for 2002 is below our previous expectations,'' wrote Bill Shope in a note to clients. ``In light of the company's strong performance, we believe that McData has decided to err on the side of caution by issuing an extremely conservative outlook.''
The bank maintained a ``buy'' rating and $15-$18 price target on McDATA's stock.
McDATA on Wednesday posted third-quarter earnings of $3 million, or 3 cents a share, excluding charges, above ABN's forecast of 2 cents a share. Its shares fell 5.86 percent, or 82 cents, to $13.18 on the Nasdaq market in midday trade. |
