WIRE:3DLabs Inc. shares fell 15% Tuesday after a report
that one of its key customers, Dell Computer Corp., had pushed back a key
order.
3DLabs (TDDDF) shares closed down $3.688, or 15%, to $21.50 on volume of
556,000 shares, compared with an average daily volume of about 199,000 shares.
CIBC Oppenheimer Corp. analyst Lenny Brecken said he was expecting for
3DLabs "to get a sizable order in June from Dell." It now looks like the Dell
(DELL) order will be delayed until sometime in the third quarter, he said.
Brecken said he cut his earnings estimates on the graphics-chip company as a
result. His 1998 estimate fell to $1.33 from $1.72 a share, but he didn't
change his "strong buy" rating on the stock. His price target remains in the
low 50s, he added.
"Although it's a disappointment, it doesn't change my opinion that order
rates will be higher through the year," Brecken said. -Christopher Grimes; |
