Sun hit by US economic slowdown

The US economic slowdown is about to give Sun Microsystems some trouble, say analysts in anticipation of revised profit expectations from Sun CEO, Scott McNealy.

  • E-Mail
By  Zoe Moleshead Published  February 22, 2001

The US economic slowdown is about to give Sun Microsystems some trouble, say analysts in anticipation of revised profit expectations from Sun CEO, Scott McNealy, for the mid quarter.

According to The Standard.com, Merrill Lynch analysts are lowering their Sun rating to ‘neutral’ from ‘accumulate’, and lowering renvenue predictions for the third quarter to $4.98 billion from $5.1 billion and reducing 2002 estimations from $26.1 billion to $25.9 billion.

Merrill Lynch analyst, Tom Kraemer cited overall economic softness as one reason for falling expectations. The general US slowdown has resulted in an inventory backlog, which Kraemer says could take several quarters to work through.

Sanford Bernstein analyst, Toni Sacconaghi, also expects Sun to lower its expectations, commenting, “Sun is the most vulnerable in our coverage universe to an economic and IT spending slowdown.”

Add a Comment

Your display name This field is mandatory

Your e-mail address This field is mandatory (Your e-mail address won't be published)

Security code