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Analysts making dramatic forecast cuts

Posted Sep 12 2008, 04:36 PM by Kim Peterson
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Analysts have been busy channeling Sweeney Todd this week, making dramatic cuts across the board. No industry appeared safe from the chopping. Thanks to Barron's for providing a nice roundup.

In the big picture, analysts are realizing that they overreached on profit estimates for companies. Money managers have been complaining about this for a while now. Were the analysts just overly optimistic in the first place, or has the oft-cited "macro environment" gotten worse? Both.

Here's a roundup of the latest cuts:

Apple: American Technology cuts estimates for the current year by 5 cents to $5.29. Next year's estimates cut by 20 cents to $6.15. Analyst says customers shifting to lower-priced Macs.

AT&T: Credit Suisse cuts 2009 EPS estimate to $3.28 from $3.33, expressing concerns about the wireless business and customer acquisition costs.

Baidu: Pacific Crest cuts price target for the Chinese search company to $360 from $405.

Bank of America: RBC cuts profit estimates after the bank said it would buy back $4.5 billion in securities.

Best Buy: UBS cuts rating to Neutral, cuts price target to $48 from $59 and cuts EPS. Cites excess inventory in LCD televisions, among other issues.

Computer chips: American Technology went on a rampage through semiconductor stock land, cutting ratings on nine companies to Neutral. Analyst says that macro factors will "limit consumption of discretionary consumer electronics devices."

Goldman Sachs: Keefe, Bruyette & Woods cuts profit estimates, expecting lower equities trading revenue. 

Intel: Friedman Billings cuts EPS estimate for 2009 by 5 cents, cites weakening demand.

Titanium industry: Longbow Research cuts expectations for several companies in the titanium business, citing delays in Boeing's 787 program.

Verizon: Credit Suisse cuts 2008 estimate by a penny and 2009 estimate by 2 cents.

 

Comments

 

THIS IS CRAZY!  What were the gas prices last time oil was under $100 per barrel?  When are they (gov.) going to care about the people not themselves.

People people settle down.......If you are of average intelligence when it comes to the stock market then you would know that the analyst only conclude the obvious....or they put lipstick on a pig.  Once the analyst turn negative it is already to late.  Just take a look at what ratings the analyst had for Enron the day before they filed BK.  The analyst paint whatever picture they need to paint in order for the firm they work for to make $$$$.  Do your own research.  Pay attention. You are the only person that can and will look out for you in the market.

I suppose with a couple years as a "Community Organizer" Obama is experienced enough to save us all from this bi-partisan economic policy failure!!

This is why we need to regulate CEO and top executive pay.  They stole all of the equity from their companies with their big paychecks and options.  And now the taxpayer and the stockholder is holding the bill.

I'm saddened as I watch the downward spiral our Country has taken in the past few years.  I am proud to be an American but I am not proud of what America has become. Why do we allow/listen to forecasters/fortune tellers/predictors control/influence our stock market?  Let the stocks speak for themselves and make your own educated decision.  Why doesn't the government freeze the price on all goods and services in the United States when a natural disaster is eminent?  Why do they continue to allow this ridiculously blatant high level of price gouging at the pumps?  Start fining these corporations hundreds of millions until they get the point.  A couple of months ago there was a news story about the demand for crude oil going down 800,000 barrels per day since the beginning of January yet the price continues to climb.  Why, because the American people and the U.S. government continues to allow it.  We need to start rallying and demanding that things change.  We have a voice we need to start using it.  Stop sitting back and complaining America, get up and do something about it.  We need CHANGE and we need it NOW.  Get out and vote this November and make your voice be heard.

It does not matter who we, the average citizen, gets to blame because the upper crust has enough cushioning underneath them where they do not experience hard times or even feel the impulse thereof. The Government as a whole is at fault, and those high-paid CEOs of companies that really do not earn the worth in salt are to blame. But that is another story

Ha! OU can't even spell McCain! Go Democrats!

Just another mess the country is in. I work at a financial institution-what have the the regulators and bank examiners been doing for years? The average american will be paying again because of the government. Please vote for a change !! What we have isn't working.

You go, Single Mom, you ARE what America is...people just trying to live and make it through!   You may end up being better off than many who are invested heavily, after all.   Greed - corporate greed, individual greed - is the culprit here.  Mix that in with power-hungry politicos, with a dash of insensitivity and you have a frightening stew bubbling over!   Yum!

Lehman is just the "tip of the Iceberg".  If your portfolio containes stocks or bonds "linked" to the banking, insurance, or mortgage banking industries, you are in for much more pain in the next 60 days.  It's going to be a Wild Ride until the US Presidential election is completed.  Hold on to your ASSets!!!

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