AG Edwards Reduces Planar Systems Outlook

Analyst Chris Chaney notes lower gross margin, higher operating expenses for the maker of electronic display products

AG Edwards cut estimates on Planar Systems (PLNR ).

Analyst Chris Chaney says his estimate was $0.23. With EPS now targeted around $0.15, Chaney notes his $0.08 miss comes from three sources. He says there is lower gross margin due to a change in the product mix between desktop LCD, and the company's core business ($0.03 per share impact); higher operating expenses from professional services as a result of its Dome acquisition ($0.04); and higher Invitium development costs ($0.01).

Chaney cut his $0.99 fiscal 2002 (Sept.) EPS estimate to $0.82, and trimmed the $1.34 fiscal 2003 estimate to $1.17. He maintains his strong buy rating and $27 target.

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