Sun: Colo. Layoffs; Caris Cuts Ests; Shrs Hit 13-Year Low
Sun Microsystems (JAVA) shares this morning are down sharply to their lowest level since 1995, following a bearish note on the company from Caris & Co.’s Shebly Seyrafi, who cut his price target on the stock to $10.50 from $14.50 “to reflect lower margins following checks indicating that JAVA was aggressively pricing its products in [the fiscal fourth quarter] and to reflect the company’s challenging outlook.”
Sun reports results for its fourth quarter ended June on August 1. The company previously guided to flat revenue with an increase in margins. Seyrafi today actually raised his revenue estimate slightly to $3.85 billion from $3.82 billion, which is a bit above the consensus of $3/8 billion, but trimmed his EPS estimate to 31 cents from 35 cents (which is still above the Street consensus of 27 cents) to reflect lower margins.
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