Bear Stearns Lowers Estimates on Dell Computer

The firm's analyst cut estimates on the PC giant due to weak industry demand and aggressive industry pricing

Bear Stearns cut its estimates on computer maker Dell Computer (DELL ) due to weak industry demand and aggressive industry pricing. Dell stock fell 11/16, to 18-5/16.

Analyst Andrew Neff cut his fiscal year 2001 earnings per share estimate to $0.87 from $0.92 and he cut fiscal year 2002 to $0.90, from $1.05. Neff said there is a good chance most computer companies will guide down first half 2001 revenue projection and EPS expectations during the upcoming EPS season.

While he continues to rate Dell a neutral, it is worth noting that as part of a "cyclical growth" industry the company is well positioned with its low-cost direct model to gain market share and maintain profitability. Neff said the best bet would be for investors to focus on business demand.

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