Seems to me they shot themselves in the foot!

Intel Profit May Miss Estimates on Low PC Demand, JPMorgan Says

By Michael Patterson

Feb. 27 (Bloomberg) -- Intel Corp., the world's largest computer-chip maker, may earn less in the next two years than previously estimated because of weak demand for personal computers and an inventory glut, JPMorgan Chase & Co. said.

Intel shares dropped 51 cents, or 2.5 percent, to $20.18 in trading before the official open of U.S. exchanges. The stock has declined 22 percent this year.

The Santa Clara, California-based chipmaker will probably report per-share earnings of $1.36 this year and $1.50 in 2009, JPMorgan analyst Christopher Danely wrote in a research note today. That's lower than Danely's previous earnings estimates of $1.44 and $1.56, respectively.

He maintained his ``neutral'' rating on Intel shares and wrote that profit this year may drop as low as $1.15 a share, 18 percent below analysts' consensus estimates.

``We believe the lower than expected revenue is being driven by excess microprocessor inventory in the channel and decelerating PC demand,'' wrote Danely. ``Despite our lowered estimates today, we believe additional downside exists.''

To contact the reporter on this story: Michael Patterson in New York at mpatterson10@bloomberg.net .
Last Updated: February 27, 2008 09:31 EST

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What difference will this make?