Lehman Cuts Estimates for Advanced Micro
Advanced Micro Devices (AMD ) sees $0.03-$0.05 Q2 earnings per share. Lehman Bros. cut its estimates on the chipmaker.
Analyst Dan Niles says two factors caused a decline in AMD's revenues and EPS: weaker than expected demand for flash memory; and competitive PC processor pricing resulting in lower average selling prices. He notes flash represents a large portion of the company's profits. Niles says Intel (INTC ) has aggressively driven down prices of its P4 processors to be extremely competitive with AMD's offerings. He believes this will cause some Q2 market share erosion for AMD.
Niles cut his $4.6B 2001 revenue estimate to $4.3B and his $5.2B forecast for 2002 to $4.7B. He also reduced his $1.20 2001 EPS estimate to $0.62 and his $1.40 projection for 2002 to $0.95.