Mohan, expect Intel to lead the way tomorrow.
Analyst: Intel to fall short of estimates
By Reuters
Special to CNET News.com
June 1, 1999, 4:35 p.m. PT
URL: news.com
SAN FRANCISCO--Intel's second-quarter earnings are likely to come in a bit lighter than expected due to a higher mix of its
lower-priced Celeron chips in the company's overall revenues, an analyst said.
BancBoston Robertson Stephens analyst Dan Niles told his sales force earlier today that earnings estimates for Intel on Wall
Street are "a little too high."
"The earnings numbers could be up to 2 cents lighter than what I have, mostly driven by pricing," Niles said. "The mix is the
problem," he said, adding that Intel is selling more of its lower-cost Celeron processors than analysts had been expecting and
that its price cuts are more aggressive.
Niles currently has second-quarter estimates of 53 cents a share, and the First Call consensus is 54 cents a share. He said Intel
could report between 51 to 52 cents a share, but he has not yet changed his estimates.
"With price cuts [on Celeron] coming at the end of the week, I want to get more information before I go ahead," Niles said. He
also has a second-quarter revenue estimate of $7.03 billion.
Intel shares were off 3.63 to 50.75 in active trading today.
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