Salomon Smith Barney downgraded Advanced Micro Devices to outperform from buy.
Analyst Jonathan Joseph says Advanced Micro's first quarter loss was narrower than his $0.08 loss estimte, in line with the Street. He says processor unit guidance was weaker than expected, and that he's concerned about weaker units, competitive pricing pressure, and the fact that there's no significant product upgrade until early 2003.
Joseph says these factors were somewhat offset by better flash business and improved rationalization costs. He cut the breakeven second quarter estimate to a $0.15 loss, and trimmed the $946 million revenue estimate to $850 million; as well as trimming the $0.10 2002 earnings per share to a $0.30 loss, and cutting the $1.00 2003 EPS estimate to $0.50 EPS.
Joseph also reducted his price target from $25 to $17.