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Sherlund cuts Microsoft
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March 22, 2001: 8:35 a.m. ET
Goldman Sachs analyst lowers sales, profit estimates on software maker
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NEW YORK (CNNfn) - Goldman Sachs technology analyst Rick Sherlund again cut his sales and profit forecasts for Microsoft Corp. Thursday, but said much of the bad news from the slowdown in tech spending may already be reflected in its stock price.
The influential analyst said he was cutting his revenue estimate for the March quarter to just over $6 billion from $6.2 billion, and his earnings estimate to 41 cents a share from 42 cents a share.
In a research note, Sherlund said he also cut his estimate for the current fiscal year ending in June to $1.75 a share from $1.78 a share previously and his estimate for fiscal 2002 to $1.75 a share from $1.86.
 Wall Street analysts on average expect Microsoft (MSFT: Research, Estimates) to earn 42 cents a share for the quarter, down from 43 cents a share a year earlier, $1.79 a share for the current fiscal year and $1.98 for fiscal 2002.
Sherlund also said many investors expect Microsoft to warn about results for the March quarter, as many other tech companies have done, noting that "significant bad news may likely already be reflected in the stock."
Microsoft stock rose 44 cents to $50.50 in before-hours trading Thursday. Sherlund's note said he continues to rate the stock "market outperform," Goldman's equivalent to a buy. 
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