Intel Revenue Estimates Cut by Salomon

The brokerage cites expected order weakness.

Author:: Michael Dunn
Publish date:: Apr 15, 2002 9:05 AM EDT

Salomon Smith Barney

cut its first-quarter revenue estimate for

Intel

due to expected weaknesses in sales.

The brokerage said it expects the chipmaker to see between $6.75 billion and $6.80 billion in revenue, in line with the Thomson Financial/First Call consensus estimate, but below Intel's forecast of $6.9 billion. EPS is expected to come in at 14 cents, in line with both the consensus estimate and Intel's previous guidance.

Salomon Smith Barney said it believes that Intel orders began to weaken in February due to seasonal weakness, order delays caused by upcoming price cuts, and the unwinding of double booking. The stock price is expected to show traditional second-quarter weakness, with an upside price target of $45.

Shares of Intel were recently trading down 0.3% to $28.30 on Instinet after closing at $28.39 Friday.