Lehman Brothers raised its estimates on handheld computing device maker Handspring (HAND ), after the firm posted a pro forma third quarter loss of $0.07 versus $0.12 a year ago, which beat the investment bank's expectations.
Analyst Joseph To said Handspring beat his loss estimate of $0.15 and the Street's consensus loss estimate of $0.16. The company's revenues of $115 million also outpaced his $104 million estimate. He noted that revenues were driven by strong sales from the company's newly unveiled Visor Platinum and Visor Prism products.
To raised his fiscal year (June) 2001 revenue estimate to $436 million, up from $402.3 million and he upped his fiscal year 2002 revenue forecast to $732 million, up from $725 million. He lowered his loss expectation for 2001 to $0.27 a share, from $0.47 per share, but raised his 2002 loss per share to $0.05, from $0.02.
To expects Handspring to benefit from exploding growth in the handheld organizer sector. He restated his strong buy rating and $90 price target.