Salomon Trims Oracle Estimates

Analyst Gretchen Teagarden thinks her estimates for the software firm may be a bit too high, given adverse IT spending

Salomon Smith Barney cut estimates on Oracle (ORCL ).

Analyst Gretchen Teagarden says based on conservative comments from management, she believes the Q4 estimate might be unattainable given the adverse affects of the IT spending slowdown. As a result, she cut the $0.15 Q4 EPS estimate to $0.13, and trimmed the $0.45 fiscal 2001 estimate (May) to $0.43.

Teagarden says the lower Q4 EPS estimate is based on lower total revenue of $3.384 million, down 3% from $3.489 million. She lowered the Q4 database revenue estimate 4% to $1.185 million and the Q4 applications revenue estimate 8.1% to $452 million. She also cut the Q4 EBITDA 13.6% to $1.148 million.

She notes the current First Call consensus for Q4 is $0.15. Estimates range from $0.13-$0.17 EPS.