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Street Talk: Security software
Credit Suisse trims estimates on Internet Security Systems, Check Point Software.
March 31, 2003: 7:13 AM EST

NEW YORK (CNN/Money) - Credit Suisse First Boston cut its estimates on several names in the security software sector, saying long-term growth is still likely, but the war will have an impact in the near-term. Meanwhile, Merrill Lynch took a look at the newspaper industry.

Credit Suisse First Boston trimmed its estimates and 12-month price target on Internet Security Systems (ISSX: Research, Estimates) within a broad look at the security software sector. The firm expects current quarter earnings per share of 12 cents, 2 cents less than previously forecast and full-year earnings of 56 cents, down from 67 cents. The price target went to $16 from $20. The firm believes that long-term, intrusion detection is one of the biggest growth sectors within security, but that ISSX is more vulnerable to quarterly weakness than its peers.

Credit Suisse said that the same vulnerability was true of security issue Check Point Software (CHKP: Research, Estimates) and has therefore cut its current quarter earnings per share estimates on the company to 23 cents from 24 cents and 2003 estimates to 97 cents from one dollar.

Merrill Lynch trimmed its estimates on Dow Jones (DJ: Research, Estimates) and Knight-Ridder (KRI: Research, Estimates) within a broader note on the newspaper industry.

Merrill forecast Dow Jones will earn 10 cents a share in the current quarter and $1.11 per share for the full-year. Both estimates are a penny less than previously forecast. Knight-Ridder is forecast to earn 65 cents in the quarter and $3.73 in the year. Both forecasts are 2 cents less than previously estimated. Merrill is making the cuts due to a continued slow growth in advertising revenue for the firms.  Top of page




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