were getting hit Monday after the most recent bout of euro weakness caused
analyst Laura Conigliaro to lower her revenue and earnings estimates on the company.
The European currency has struggled against the dollar since its inception in 1999. But the deep, new losses sustained last week by the euro had Conigliaro going back to the drawing board on IBM.
She wrote that "IBM's fundamentals are improving, but currency has worsened since we put together our forecast for the September quarter." Conigliaro expects the euro weakness, which makes IBM's products more expensive to European consumers and businesses, will lower revenue growth to 6.6% from 8.4% in the third quarter, and to 9.4% from 13.9% in the fourth quarter.
Conigliaro also lowered her earnings-per-share estimates to $1.50 from $1.53 for the fourth quarter, and to $4.45 from $4.50 for 2000. She kept the stock on Goldman's recommended list, the firm's highest rating. (Goldman hasn't performed recent equity underwriting for IBM.)
IBM was off $4.31, or 3.3%, to $125.19.
But investors didn't seem overly concerned that similar problems would arise at the other boxmakers doing business in Europe.
were each modestly higher.
was off 3%, but much of the selling in that stock was keying off
news that the company is willing to pay as much as $18 billion in cash and stock for the consulting unit of