Bear Stearns Keeps Peer Perform on Gateway
Bear Stearns keeps its peer perform rating on Gateway (GTW ).
Analyst Andrew Neff says first-quarter results, which were weak, are not meaningful as it reflected three weeks of the eMachines contribution and includes a contribution from Gateway stores, which just closed. He says the business transition is still a work in progress. He notes his and the Street's estimates reflected standalone Gateway.
Neff says the outlook is uncertain, and he cites Gateway's near-term priority to simplify its structure and product portfolio, harmonize its channel strategy, and drive toward its goal of a strong retail presence by the fourth quarter of 2004.
Neff narrowed the 80 cents 2004 loss estimate to a 45 cents loss, and narrowed the 90 cents 2005 loss estimate to a 15 cents loss. But he has little faith in these estimates, given the number of moving parts.
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