Prudential cuts both ‘Zillas’ 2001 earnings
Chip and Chimp go down
Prudential Securities has cut its earnings predictions for both AMD and Intel for the current calendar quarter on the expectation of poorer than anticipated sales during the period.
Sales for three months to June will be ten per cent down on the first three months' figure, according to Pru, cited by AFXpress. Pru's last prognostication suggested the quarter's sales would be roughly static, quarter on quarter.
The shift from zero growth to negation growth will hit both chip companies' revenues. Chipzilla will see sales for the full year fall to $26.85 billion, down from Pru's previous prediction of $27.3 billion. Earnings will stay the same at around 61 cents a share. During 2002, says Pru, Intel will realise revenues of $30.25 billion and earnings of 95 cents a share.
Chimpzilla's 2001 profits will fall from an earlier prediction of $1.8 billion to $1.62 billion. For 2002, the figures is now $1.9 billion, down from $2.1 billion. ®