And you have to know that when Intel and Seagate sneeze, Microsoft is going to catch a cold.
Raymond James analyst Michael Turits this morning chopped his EPS estimates for Microsoft, specifically citing weak PC demand. He snipped his September quarter EPS forecast by 2 cents a share to 58 cents; for the June 2013 fiscal year he comes down a nickel to $2.93.
Turits isn't giving up on the stock, though. "Despite macro and PC shipment weakness, we remain optimistic regarding the impact on FY 2013 and FY 2014 results of Windows 8 client and server, Office, data center and Windows Phone 8 product releases this year, as well as the company's broadening and increasingly integrated strategy around cloud and mobile computing and the digital home. Finally, we see Microsoft as a solid defensive play in a tough macro environment."
That said, he points out that both Dell and HP last month reported July quarter PC unit shipments down 10% year over year. IDC later trimmed its PC shipment forecast on slowing growth in Asia, volume declines in the U.S. and a weak overall consumer market. He notes that PC contract manufacturer data so far this quarter "looks weak as well." Notebook manufacturer Compal last week cut its 2012 notebook growth target to flat from the high teens.
Turits notes that he cut his September quarter PC shipment forecast to down 3.5% from up 1%; for the June 2013 fiscal year, he goes to +3.7%, from +5.1%.
MSFT this morning is actually up 6 cents, to $30.45.
