Robbie Stephens Cuts Estimates on BEA Systems

Analyst Michael Beckwith says the September 11 tragedy, as well as more intense pricing competition, is hurting the business software company

Robertson Stephens cut estimates on BEA Systems (BEAS ).

Analyst Michael Beckwith says he believes BEA is facing the same challenges as other software companies in wake of the September 11 tragedy. The company has effectively lost two weeks in selling cycles, is working with a reduced pipeline, and is experiencing lower ASPs and smaller deal sizes. He adds that competition and pricing pressure -- mostly from IBM -- also is hurting the company.

Beckwith cut the $0.09 Q3 cash EPS estimate to $0.06, trimmed the $0.39 fiscal 2002 (Jan.) estimate to $0.31, and cut the $0.50 fiscal 2003 EPS estimate to $0.36. Beckwith maintains his buy rating and $17 price target. He says longer-term, he believes BEA is well positioned to be one of the survivor in this ongoing shakeout in enterprise software.

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