fell more than 10% Monday morning after
Salomon Smith Barney
cut its price target on the chip maker and lowered earnings and revenue estimates.
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
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.