INTC, MSFT: Pacific Crest Cuts Ests On Sagging PC Sales

With demand for personal computers continuing to erode, analysts at Pacific Crest this morning cut their estimates on both Microsoft (MSFT) and Intel (INTC) . On Microsoft , Pacific Crest software analyst Brendan Barnicle reports that the company is seeing not only the obvious weakness in PCs but also “a deteriorating pipeline” for both its Server and Tools business and its Online segment. In response, he cut his EPS estimate for the June 2009 fiscal year to $1.86, from $1.96. He also thinks it is possible Microsoft could reduce FY ‘09 guidance to a range of $1.85 to $1.95 from its previous guidance of $2 to $2.10. He also contends that December quarter results will likely fall short of guidance of 51-53 cents; he sees 48 cents. That said, he repeats his Outperform rating on the stock and says that risk to estimates is already in the stock. On Intel , Pacific Crest semiconductor analyst Michael McConnell reports that prominent Asian contract manufacturers have ... (link)