Barclays Q2 Preview on U.S. IT Hardware: Caution Should Be the Norm (IBM, XRX, EMC, LXK, AAPL, WDC, IM, DDD, STX)

Barclays on U.S. IT Hardware Q2 Preview: Caution Should Be the Norm

Analyst, Ben A. Reitzes, said, "Checks point toward sluggish conditions in Europe into quarter end, including secular weakness in PCs, Printers and servers."

Reitzes comment on nine companies covered by the firm.

IBM (NYSE: IBM): Sees in-line EPS, but miss on the revenues. EPS guidance maintained thanks to stock buybacks.

Xerox (NYSE: XRX): Remaining Cautious - weakness in entry level and high end printing.

EMC (NYSE: EMC): Q2 to see possible impact from slowing sales, however, the company's new products should drive second half growth.

Lexmark (NYSE: LXK): Pre-announced lower on July 12...expecting lower FY guidance on conference call.

Apple (Nasdaq: AAPL): As usual, expecting strong margins and conservative guidance. See EPS upside at iPhone sales better than originally feared.

Western Digital (NYSE: WDC): Gaining market share may even help the company top current estimates. Solid performance from recent acquisition of HGST.

Ingram Micro (NYSE: IM): Improved execution, but weaker PC's and Europe. Pipeline strong with highly accretive acquisition of BrightPoint.

3D Systems (NYSE: DDD): Looking at progress/integration of acquisition.

Seagate (NYSE: STX): Looking to guidance after 7/5 preannouncement.

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