April 28th, 2006
Things That Make You Go… Huh?
According to Forbes Magazine, Morgan Stanley analyst Mark Edelstone lowered 2006 and 2007 earnings-per-share estimates on LSI Logic after the chipmaker posted weak results in its consumer business due primarily to a decline in demand for Apple Computer’s iPod. The article goes on to say:
While the company saw strength in storage components business, those gains were offset by softness in its consumer business, which declined almost 24% sequentially due largely to seasonal decline in demand for Apple’s iPod digital audio player, for which LSI supplies certain components.
Umm, what would a seasonal decline have to do with full-year 2006 and 2007 estimates?
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