Salomon Analyst Cuts Profit Estimate for IBM

IBM Corp., facing a sales shortfall, may have to announce soon that its earnings for the second quarter won’t meet expectations, Salomon Smith Barney analyst Richard Gardner said.

Gardner cut his 2002 earnings estimate for the world’s largest computer maker to $3.85 a share from $4.11 while leaving his 2003 estimate of $4.75 unchanged.

On average, analysts expect IBM to earn $4.07 this year and $4.81 in 2003, according to Thomson First Call.

For the first quarter, IBM warned that profit would fall below analyst forecasts, less than two weeks before reporting its results on April 17.

Gardner said a pre-earnings announcement from IBM is unlikely until late this month or early July.

IBM shares rose 97 cents to $77.14 on the Big Board.