Ingram Micro (IM) lowered guidance. Salomon Smith Barney downgraded its rating on the shares to neutral from outperform.
Analyst Richard Gardner says that Ingram management cites weaker than expected demand in all regions during May and early June, and commented that the U.S. slowdown has now spread to Europe, Canada, Latin America and parts of Asia. Gardner says PCs were cited as the weakest product category. He says $300 million of a projected revenue shortfall is attributable to the U.S., $200 million to Europe, and $200 million to other international regions.
The analyst cut his $0.09 Q2 EPS estimate to a $0.03 loss per share and his $6.6 billion revenue forecast to $5.9 billion; and his full-year 2001 estimates for EPS from $0.55 to $0.36 and for revenue from $28.1 billion to $25.6 billion.