Aug 25, 2010
1:31 AM Intel: Roth Reduces EPS Estimates On Weaker PC Demand
Posted by Eric Savitz
Roth Capital analyst Arnab Chanda late Tuesday chopped his EPS estimates on Intel (INTC), citing ongoing signs of weakening PC demand.
“We believe that INTC’s Q3 guidance was too optimistic,” he notes, pointing out that “business conditions weakened throughout July with no pickup in August.” He adds that “given weakness in the consumer PC channel as reported by Hewlett-Packard (HPQ) and Acer in Europe and North America, slow data in [contract manufacturers] from Taiwan, and the lackluster start to the back-to-school season in the U.S.A., we believe Q3 is tracking below the mid-point of our estimates with risk to the downside depending on September.”
He now sees Q3 EPS of 52 cents, down from 54 cents. For 2010, he goes to $2.03, from $2.08. And for 2011, his new forecast is $2.10, down from $2.20.
On Tuesday, INTC fell 30 cents, or 1.6%, to $18.41. |
