Analysts Cut Estimates For SPX, Shares Slide

NEW YORK (AP) — Shares of SPX Corp. fell Tuesday as analysts cut their estimates and blamed the recession for the industrial equipment maker's reduced outlook.

The Charlotte, N.C., company lowered its first-quarter and full-year profit guidance Monday and said global economic conditions were hurting demand.

Deutsche Bank analyst Nigel Coe wrote in a client note that deterioration in U.S. and European automotive markets had a strong impact on SPX, and that above-average exposure to China could hurt its earnings in the event of a sharp economic slowdown there.

Coe lowered his earnings-per-share estimate for the full year to $4.50 from $5, compared with the company's expected range of $4.40 per share and $4.80 per share. He kept a "hold" rating.

Meanwhile, analyst Nicole M. Parent of Credit Suisse Equity Research cut the target price to $45 from $49 and reiterated a "neutral" rating.

"Like most of the stocks in our universe, (SPX) is cheap but we don't see many positive catalysts on the horizon," she said.

SPX said it expects first-quarter revenue to be down about 14 percent from the first quarter of 2008, to about $1.2 billion. The company's first-quarter earnings are scheduled to be released April 29.

The company expects revenue of between $4.9 billion and $5.1 billion for the full year, down about 18 percent.

Shares gave up $2.28, or 5.2 percent, to $41.63 in late trading Tuesday.