![]() Net/net: While sept-qtr results should be fine, we see growing risk to Dec-qtr and importantly CY23 estimates given increased macro risk that will temper IT budgets and result in a more prudent but conservative stance from companies. We left three models unchanged including AAPL, ANET, and VRT (recent pre-announcement). Overall, we have lowered our estimates across the board by 2-3% on the top-line and >5% on the bottom-line. 4) Hyperscale – while there is likely a deceleration, we suspect this will remain strong and up low double digits (specially for networking). 3) Backlog – we suspect will get extended out or deferred especially for enterprise companies. current expectations that are close to 4%. 2) IT budgets – we think could be tempered at +2-3% vs. Key points – 1) PC Units – We think have sustained downside and could be closer to 250M by CY23 vs. ![]() Positively, we could see supply chain and logistics/freight costs alleviated which could bolster margins. Fundamentally, IT budgets while strong for CY22 have risk for moderation into CY23 and a strong USD will place further pressure on revenue expectations. Hence, we are lowering estimates for FY23 across the board as we think the street needs to temper current top and bottom-line expectations for companies in our coverage and beyond. ![]() ![]() "We think the Street needs to temper current top and bottom-line expectations for companies in our coverage and beyond." - Analyst Amit Daryananiįrom a note to Evercore clients that landed on my desktop Tuesday:ĪLL YOU NEED TO KNOW: We see risk to CY23 estimates across most companies in our coverage as multiple headwinds (strong US dollar, soaring energy prices in Europe, rising interest rates to combat persisting inflation, etc.) will likely temper CY23 expectations and guides.
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