Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : The Thread Formerly Known as No Rest For The Wicked -- Ignore unavailable to you. Want to Upgrade?

To: MARU CAT who wrote (18742)	3/22/1999 9:49:00 AM
From: JakeStraw	Respond to of 90042

RESEARCH ALERT-DLJ cuts estimates on Dell NEW YORK, March 22 (Reuters) - Donaldson, Lufkin & Jenrette said Monday it cut its first quarter revenue and earnings estimates on Dell Computer Corp., citing lower expected shipments and average selling prices for the current quarter. -- In a research note, Kevin McCarthy said he was reducing his revenue estimate for Dell's first quarter ending April to $5.35 billion from $5.5 billion. He also cut his first quarter earnings estimate to $0.15 per share from $0.17 per share. -- He lowered his estimate for the current fiscal 2000 year revenues to $25.1 billion from $25.6 billion and his earnings estimate for the year to $0.72 per share from $0.75 per share. -- McCarthy said he was maintaining his market performance rating and said he believed ''Dell's stock is more fairly valued in the low to mid-$30 range.'' -- In pre-open trading Dell stock dropped to $39-3/8, down from $40-1/4 on Friday, according to Instinet. -- He estimated that Dell will ship 2.3 million personal computer units at an average selling price below $2,300, which represents slight reductions from his previous estimates. -- ''This unit growth is still (three times) the market but is below the peak (five times) the market Dell acheived several quarters ago,'' McCarthy said. ''The law of large numbers has begun to squeeze Dell's unit growth in commercial accounts.'' -- ''Something has to give -- Dell's (average selling price) and gross margin or top-line growth,'' he wrote. ''Either one could trigger a slowdown in financial momentum.''