FBR Capital Lowers Estimates on Microsoft (MSFT) Following Soft PC Data
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Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
58 Buy, 11 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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FBR Capital maintains a 'Market Perform' on Microsoft (NASDAQ: MSFT), PT $30.
FBR analyst says, "We are lowering our estimates to reflect soft PC shipment data for the just concluded March quarter. IDC and Gartner estimate that PC shipments declined by 3% and 1% year over year, respectively. We were modeling a PC decline of 1% year over year. IDC and Gartner highlighted a shift of consumer demand toward tablets. The soft PC data are consistent with our thesis that there really is not much of an enterprise refresh cycle and that tablets are cannibalizing PC demand, specifically netbooks and notebooks. We maintain our Market Perform rating, as we (1) remain skeptical about a strong enterprise PC refresh cycle, (2) believe the emergence of tablets will adversely affect the company's core desktop franchise, and (3) evaluate the company's last legitimate effort to become a meaningful player in the vital mobile market."
"We are lowering our F3Q11 (March) revenue and pro forma EPS estimates to $16.22 billion and $0.57 from $16.49 billion and $0.59, respectively. We are lowering our F4Q11 (June) revenue and pro forma EPS estimates to $17.20 billion and $0.62 from $17.42 billion and $0.63, respectively. We are lowering our FY12 revenue and pro forma EPS estimates to $73.1 billion and $2.81 from $73.9 billion and $2.84, respectively."
For more ratings news on Microsoft click here and for the rating history of Microsoft click here.
Shares of Microsoft closed at $25.63 yesterday.
FBR analyst says, "We are lowering our estimates to reflect soft PC shipment data for the just concluded March quarter. IDC and Gartner estimate that PC shipments declined by 3% and 1% year over year, respectively. We were modeling a PC decline of 1% year over year. IDC and Gartner highlighted a shift of consumer demand toward tablets. The soft PC data are consistent with our thesis that there really is not much of an enterprise refresh cycle and that tablets are cannibalizing PC demand, specifically netbooks and notebooks. We maintain our Market Perform rating, as we (1) remain skeptical about a strong enterprise PC refresh cycle, (2) believe the emergence of tablets will adversely affect the company's core desktop franchise, and (3) evaluate the company's last legitimate effort to become a meaningful player in the vital mobile market."
"We are lowering our F3Q11 (March) revenue and pro forma EPS estimates to $16.22 billion and $0.57 from $16.49 billion and $0.59, respectively. We are lowering our F4Q11 (June) revenue and pro forma EPS estimates to $17.20 billion and $0.62 from $17.42 billion and $0.63, respectively. We are lowering our FY12 revenue and pro forma EPS estimates to $73.1 billion and $2.81 from $73.9 billion and $2.84, respectively."
For more ratings news on Microsoft click here and for the rating history of Microsoft click here.
Shares of Microsoft closed at $25.63 yesterday.
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