Oppenheimer cuts Lehman earnings estimates

NEW YORK (MarketWatch) — Oppenheimer & Co. banking
analyst Meredith Whitney on Tuesday slashed estimates for Lehman Bros. Holdings .
Whitney lowered her earnings per share estimate for 2008 to a loss of $3.34 from
a profit of $1.58 after Lehman announced a $6 billion capital raise and
larger-than-expected second quarter loss. “We estimate that the most recent
capital raise is 30% dilutive to existing shareholders,” Whitney wrote in a note
to investors, “and that the sheer size of such a dilutive capital raise will put
serious pressure on Lehman’s ability to deliver on meaningful earnings per share
growth over the near to medium term.”

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