Goldman cuts Sun earnings forecast

By : |May 30, 2001 0



NEW YORK: Goldman Sachs said on Wednesday that it had cut its earnings
forecast for Sun Microsystems Inc. to 40 cents a share from 50 cents for the
2002 fiscal year after the network computer maker reduced its current-quarter
profit and revenue forecast.

Blaming economic weakness in Europe, Sun said per-share earnings on a pro
forma operating basis for the quarter would be 2 to 4 cents, below Wall Street’s
forecast of 6 cents, while sales would be 10 per cent or more below Wall Street
estimates.

In her report, analyst Laura Conigliaro wrote, “We expect it will now
take more dramatic and/or uncharacteristic measures to shake up the company and
move away from some of its sacred cows.” Those measures could include
layoffs as well as the elimination of less critical research and development
projects and acquisitions, she said.

Shares of Sun closed Tuesday on Nasdaq at $18.67, though it fell further in
after-hours trading on Instinet.

(C) Reuters Limited 2001.

No Comments so fars

Jump into a conversation

No Comments Yet!

You can be the one to start a conversation.