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Technology Stocks : ADI: The SHARCs are circling! -- Ignore unavailable to you. Want to Upgrade?

To: Bosco who wrote (2593)	1/11/2001 12:49:40 PM
From: Jim Oravetz	Read Replies (8) \| Respond to of 2882

Merrill Lowers '01 Views On Intel, Other Chip Companies Dow Jones Newswires By Donna Fuscaldo NEW YORK -- Even though earnings expectations for semiconductor companies in 2001 have been lowered, Merrill Lynch analyst Joseph Osha said consensus earnings numbers are still too high for several companies. In a research note, "Getting the 2001 Numbers In Line With Reality," Osha reduced again his estimates for Intel Corp. (INTC), Advanced Micro Devices Inc. (AMD), Analog Devices Inc. (ADI), Linear Technology Corp. (LLTC) and Texas Instruments Inc. (TXN). For Intel, Osha took his earnings per share estimate down to $1.41, from $1.56 and lowered his revenue number to $38.1 billion from $39.3 billion. As for AMD, the analyst now expects the chip maker to post 2001 earnings of $2.43 a share, compared with his previous forecast of earnings of $2.66 a share. He lowered his revenue estimate for AMD to $5.8 billion from $6.4 billion. In the case of Analog Devices, Osha is now calling for earnings of $2.39 a share, compared with his previous estimate of $2.58, and expects revenue to come in at $3.7 billion, down from $3.99 billion. At Linear Technology, the analyst is looking for 2001 earnings of $1.41, down from his previous estimate of $1.48, and expects the company to post revenue of $1.16 billion, compared with his previous view $1.2 billion. As for Texas Instruments, Osha expects the company to post full year 2001 earnings of $1.40 a share, 21 cents lower than his previous estimate. He said revenue should come in at $13.1 billion, compared to his past estimate of $14.97 billion. In his research note, Merrill's Osha said that Intel and AMD not only have to contend with pricing pressure in their microprocessing businesses in 2001, but also will face a likely deceleration of growth in their memory businesses. In the analog space, Osha noted that Analog Devices and Linear Technology have not seen weakness in their core businesses yet, but through checks he has found that problems are already evident in "weaker" analog companies including National Semiconductor Corp. (NSM), Fairchild Semiconductor International Inc. (FCS) and Intersil Holding Corp. (ISIL). For Texas Instruments, Osha said he lowered his numbers because the estimates for the analog portion of TI's business for the first half of 2001 were "unjustifiably high." Although recent checks with TI have shown that there is no weakness in its analog business and that the fourth quarter is not at risk, Osha said the company is more likely to see problems in the first and second quarter of 2001. Shares of Intel were recently trading down 2%, while AMD was off 2.2% and Analog Devices was down 3.7%. TI's stock was recently down 1.5%, while Linear was up 1%.