Goldman Cuts Estimates on a Host of Software Companies

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 |  Includes: ADBE, BEAS, BMC, CA, INFA, MSFT, MVSN, PTC, RHT, RNOW, SAP, SCUR, SYMC, TIBX
by: Eric Savitz

Goldman Sachs’ software analysts have cut their estimates on a host of companies in response to the weakening economy. In a note Tuesday, the firm said that its U.S. economists believe we have already slipped into recession. They see zero growth in the first quarter, and “slight shrinkage” in Q2 and Q3. In response, Goldman has cut pro forma EPS estimates by 1%-2% on average for many software stocks.

Here’s a rundown on their fiscal 2008 EPS cuts. In most cases Goldman also cut estimates for 2009 as well:

  • Adobe (NASDAQ:ADBE): FY 2008 to $1.81 from $1.87. Target to $44 from $46.
  • BEA (BEAS): FY 2008 estimate unchanged at 70 cents, but ‘09 to 75 cents from 77 cents.
  • BMC (NASDAQ:BMC): FY 2008 to $1.80 from $1.83.
  • CA (NASDAQ:CA): FY 2008 remains $1.10, but 2009 to $1.23 from $1.30.
  • Informatica (NASDAQ:INFA): FY 2008 to 73 cents from 75 cents.
  • Macrovision (MVSN): FY 2008 to $1.63 from $1.74.
  • Microsoft (NASDAQ:MSFT): FY 2008 to $1.93 from $1.94.
  • Parametric (PMTC): FY 2008 to $1.14 from $1.18. Price target to $19 from $21.
  • Red Hat (NYSE:RHT): FY 2008 unchanged at 70 cents, but ‘09 to 82 cents from 84 cents.
  • RightNow (NASDAQ:RNOW): FY 2008 to loss of 3 cents from profit of one penny.
  • SAP (NYSE:SAP): FY 2008 to $2.73 from $2.86.
  • Salesforce.com (NYSE:CRM): FY 2008 remains 57 cents, but 2009 to 78 cents from 80 cents.
  • Secure Computing (SCUR): FY 2008 to 44 cents from 46 cents.
  • Symantec (NASDAQ:SYMC): FY 2008 to $1.15 from $1.16. Price target to $24 from $25.
  • Tibco (NASDAQ:TIBX): FY 2008 to 41 cents from 43 cents.