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Salomon Cuts Price Target, Earnings Forecast on Intel

Shares of

Intel

(INTC) - Get Report

fell more than 10% Monday morning after

Salomon Smith Barney

cut its price target on the chip maker and lowered earnings and revenue estimates.

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Salomon cut its one-year price target to $50 from $75. The firm also dropped the company's third-quarter earnings outlook to 37 cents a share from 38 cents and lowered its fourth-quarter earnings projection to 37 cents a share from 40 cents. Additionally, the firm cut its revenue growth outlook for the quarter to 2% from 4%.

The consensus estimate is for Intel to earn 38 cents a share in the third quarter and 42 cents in the fourth quarter, according to a

First Call/Thomson Financial

survey.

Salomon also lowered its 2001 earnings outlook for Intel to $1.55 a share from $1.75 and cut its 2001 revenue outlook to $37.45 billion from $38.37 billion.

Shares of Intel were recently trading down $4.19, or 10.4%, to $36.19.

Intel is expected to report third-quarter earnings Tuesday after the closing bell.