Bear Stearns Lowers Estimates on Dell Computer
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.