Dell down as Bearn Sterns cuts Q4 estimates

Dell Computers, which employs 4,500 people in Limerick, fell in early US trading, after Bear Sterns became the latest brokerage…

Dell Computers, which employs 4,500 people in Limerick, fell in early US trading, after Bear Sterns became the latest brokerage to cut its fourth-quarter and full-year revenue and earnings per share estimate for the company, dealers said.

At 10.45 a.m. in New York, Dell traded 1 lower at 18. The Nasdaq composite fell 40.36 to 2,367.29, while the DJIA slipped 6.91 to 10,655.10

While reiterating its "neutral" recommendation, Bear Sterns said it is cutting its revenue and EPS estimates for Dell to reflect "weak industry demand and aggressive industry pricing".

The brokerage said it lowered its EPS estimate for the fourth quarter 2000 by 5 cents to 21 cents, on revenue of $8.3bn, $400mn below its previous estimate.

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For the full-year 2001, Bear Sterns is now looking for EPS of 92 cents, 5 cents lower than its previous forecast.

AFP