Tag Archive | "said-it-expects"

NOK Drops 15%: ‘Burning Platform’ Sinking

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Straight shot down for Nokia this morning; where’s the bottom?

Shares of Nokia (NOK) are down 90 cents, or 11%, at $7.30 $1, or 12.2%, at $7.20 $1.28, or almost 16%, at $6.91 this morning after the company this morning warned the current quarter is tracking much worse than it had expected, andsaid it could no longer off a full-year forecast, citing “multiple factors” that are “negatively impacting” its business.

The “burning platform” to which CEO Stephen Elop famously referred several months ago, is in effect sinking, at least for the moment.

Nokia sees adverse “competitive dynamics and markets trends across multiple price categories, particularly in China and Europe,” the company said. Then, too, it is selling more devices at lower prices and at lower gross profit margin. The company said it is also being subjected to “pricing tactics by Nokia and certain competitors.”

Subjected to its own pricing tactics? Hoisted on its own petard, I guess.

Nokia said it expects Q2 “devices & services” revenue will be “substantially below” the prior range of €6.1 billion to €6.6 billion. Operating margin will also miss the 6% to 9% Nokia had offered. In fact, the operating margin “could be around break-even.”

Nokia removed a target for Q3 devices and services sales to be even with Q2, and to rise in Q4, saying those targets were “no longer valid.”

Nokia said it would accelerate its attempt to trim €1 billion in annual operating expenses, and said that its development of its first phone using Microsoft’s (MSFT) operating system is going well, and that the device should ship in Q4 of this year. That may be somewhat earlier than some had expected.

Update: MKM Partners analyst Tero Kuittinen this morning send a missive to re-emphasize what he’d said a little over a week ago, which is that Nokia is seeing less and less support from some carriers, and that this is leading to “rock-bottom pricing.”

N8 sales are eroding rapidly and that some of the steeply discounted deals offered by leading carriers imply that this flagship model, launched last October, is now being phased out.”

Basically, it’s the Android invasion:

European rollouts of the Samsung Galaxy S2, Sony Ericsson Arc and HTC Desire HD seem to be proceeding notably strongly over the past two weeks. In our view, even second-tier Android launches like Sony Ericsson Play and Samsung Galaxy Fit are having better launch traction than carriers had anticipated. The Samsung Galaxy S2 seems to be matching iPhone sales at Orange and Vodafone.

Update 2: Jennifer Fritszche with Wells Fargo reports from the conference call with management this morning. She finds it interesting that the real problem Nokia is up against is Android, not Apple’s (AAPL) iPhone.

“Impact seen in both feature and smartphones – but given the fact it called out specific regions of Europe and China, NOK’s CFO indicated that more of smartphone contribution from these 2 regions,” writes Fritszche.

CEO Stephen Elop indicated that Android players, particularly in CDMA, have been disruptive and are taking market share. While NOK did not mention any specific manufacturers, we note [Motorola Mobility (MMI)] has historically been quite strong in CDMA and has been building its presence in China.”

Update 3: Analysts are starting to adjust numbers — see the note today from Gleacher & Co. Some are warning that things will have to get worse, and that estimates are bound to go lower, before Windows-based devices help improve the outlook.

Article courtesy of Tech Trader Daily

DELL Up 5% On FYQ1 Beat; Reaffirms Year Growth View

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Dell (DELL) this afternoon reported fiscal Q1 revenue short of analysts’ estimates, but delivered adjusted EPS well ahead, and offered a better-than-expected outlook for the current quarter’s revenue growth.

Revenue rose 1%, year over year,  to $15.02 billion from $14.87 billion a year earlier, yielding EPS of 55 cents.

Analysts had been modeling $15.4 billion in revenue and 44 cents EPS.

The company reaffirmed an expectation for full-year revenue growth of 5% to 9%, versus the 5% consensus. For Q2, Dell sees revenue growth “in the mid-single digits” compared to Q1, which the company noted would be above its normal sequential seasonal growth of 2% to 3%.

Dell said it expects spending by governments to improve, better-than-average seasonality in small and medium business, and education customers, and a “solid” back-to-school season. The timing of Dell’s offerings based on Intel’s (INTC) “Sandy Bridge” chips will help with small business and consumer sales, the company said, as will a refresh of its “XPS” product line.

Consumer revenue declined 7% to $3 billion, Dell said, with softer-than-expected demand. Public revenue was down 2%, large enterprise revenue was up 5%, and small and medium business revenue was up 7%.

Dell will hold a conference call with analysts at 4 pm, Central time, 5 pm, Eastern, which you can catch here.

Dell shares were halted just before the release. Apparently, the stock is to resume trading at 4:20 pm, Eastern.

Update: DELL has resumed trading and is now up 81 cents, or 5%, at $16.69.

No doubt, the rough outlook by Hewlett-Packard (HPQ) this morning may have some folks breathing a sigh of relief, and perhaps even shifting some money around. HP shares, I should note, are up 3 cents in late trading.

Article courtesy of Tech Trader Daily

Netgear Soars 25% to New High on Earnings

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Shares of Netgear (NTGR) were up more than 26% recently, to $43, a new all-time high, following the company’s better-than-expected first quarter earnings and guidance.

For the first quarter, Netgear said it earned $21.2 million, or 57 cents a share, up from 38 cents a share, a year earlier,. Excluding one-time items, earnings rose to 65 cents a share from 48 cents, handily beating estimates of 52 cents. Revenue grew to to $278.8 million, ahead of its guidance of $250 million to $260 million.

For the second quarter, the company said it expects revenue of $270 million to $280 million, again trouncing the $241 million consensus.

Article courtesy of Tech Trader Daily

Apple Rumored to Be Slashing CDMA iPhone 4 Production in Half

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Apple (AAPL) may be cutting production of its CDMA iPhone 4 in half, according to insiders at one of the company’s suppliers.

Rumors started this morning that Taiwan supplier Pegatron had been asked to to scale back production of the CDMA phones this year from an anticipated 10 million to 5 million. This would seem to be a bit at odds with Verizon‘s (VZ) estimates, as the company had said it expects to activate 11 million iPhones this year.

No reason was given for the production cut; rather than slack demand, it may instead signal an earlier-than-anticipated switchover to the production of the next generation iPhone (which could also account for Verizon’s estimates, with iPhone 5 sales adding to the year’s total).

Read the original DigiTimes report here and an initial analysis here.

Shares of Apple were off 0.5% in recent trading.

Article courtesy of Tech Trader Daily

EBay Falls Despite Earnings Beat

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EBay (EBAY) was falling 2.3% recently in after hours trading following the firm’s first-quarter earnings.

Ebay said it earned $476 million, or 36 cents a share, compared to 30 cents a share for the same period last year. On a non-GAAP basis, profit came in at $619 million, or 47 cents a share, for the recent period, compared to42 cents in the year-ago period.

Revenue grew to $2.55 billion.

Analysts were expecting the company to earn 46 cents on revenue of $2.48 billion.

For the full year, eBay said it expects revenue of $10.6 billion to $10.9 billion, ahead of expectations. It forecast second quarter earnings  of 45-46 cents a share, in line with estimates.

Article courtesy of Tech Trader Daily

Qualcomm Jumps 4%: FYQ2 Beats; Raises Year View

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Qualcomm (QCOM) this evening reported fiscal Q2 revenue and EPS ahead of estimates, raised its full-year view, and offered a Q3 view ahead of estimates.

Q2 revenue came in at $3.87 billion, yielding EPS of 86 cents. Analysts had been expecting revenue of $3.62 billion and EPS of 80 cents.

For fiscal Q3, the company sees 68 cents to 72 cents EPS on revenue of $3.35 billion to $3.65 billion. Analysts have been estimating revenue of $3.39 billion and EPS of 69 cents. Qualcomm said it expects shipments of its “mobile station modems” to rise 12% to 16% from the prior year’s Q3, to 115 million to 119 million units.

For the year, the company now sees revenue of $14.1 billion to $14.7 billion, versus a prior $13.6 billion to $14.2 billion range, and ahead of the average $13.93 billion estimate. EPS is expected in a range of $3.05 to $3.13, versus a prior $2.91 to $3.05 range, and the average $3.04 estimate.

Part of the increase for the fiscal year is an expected rise in average selling prices: Qualcomm now sees ASPs in a range of $199 to $209, versus a prior estimate of $190 to $200, and ahead of the year-earlier quarter’s range of $183 to $189.

Qualcomm shares are up $2.38, or 4%, at $57.65 in late trading.

Article courtesy of Tech Trader Daily

RIM Off 10%: Q1 View Light (Update)

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Research in Motion (RIMM) this afternoon reported fiscal Q4 revenue for the three months ending in February that missed analysts’ estimates, but beat on the bottom line. The current quarter forecast was short of estimates.

Q4 revenue was $5.56 billion, yielding EPS of $1.78. Analysts had been modeling $5.64 billion in revenue and $1.76 in earnings per share.

The company sold 14.9 million BlackBerry smartphones, it said, which was toward the upper end of its projected range. Gross profit came in at 44.2% of sales, ahead of the 43.6% reported in the prior quarter.

For the fiscal Q1 ending in May, the company sees $5.2 billion to $5.6 billion in revenue and EPS of $1.47 to $1.55. Analysts have been modeling $5.64 billion and EPS of $1.65.

RIM said it expects gross profit margin to decline in Q1 to 41.5%. Some of that is because of a decline in average selling price for phones, and some of it reflects greater investment in sales and marketing, RIM said.

RIM said its Q1 forecast was “wider than normal” to allow for some uncertainty surrounding developments in Japan.

For the full year ending February of 2012, RIM sees EPS “in excess of” $7.50, well ahead of the average of $6.81.

RIM will hold a conference call with analysts at 5 pm, Eastern, which you can listen to via Webcast at the company’s investor relations site.

RIM shares are down $5.09, or almost 8%, at $59.00 are down $5.67, almost 9%, at $58.42 are down $6.09, or almost 10%, at $58.00.

Update: With the conference call underway, management is saying that it will provide “guidance” for expected shipments of its PlayBook tablet computer “next quarter,” which I assume means when fiscal Q1 is reported in June. The company said that some customers are delaying their purchases of tablet computers because they are waiting to buy a PlayBook.

Article courtesy of Tech Trader Daily

Rosetta Stone Can Say “Uh-Oh” in Hundreds of Languages

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Language software company Rosetta Stone (RST) prennaounced weak fourth quarter earnings on Friday, sending shares down 17%. The company said it expects to post 27 cents of earnings on $74.2 million in revenue, versus analysts’ expectations for 31 cents and $77.24 million. The company had previously said it expected revenue [...]

Article courtesy of BARRONS.com: Tech Trader Daily

Sprint Rises: Q4 Revenue Beats, Subscriber Additions Shine

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Shares of Sprint-Nextel (S) are up 6 cents, or 1.4%, at $4.41 this morning after the company missed Q4 EPS estimates by a penny but turned in better-than-expected revenue and said it expects to improve the number of customers it adds this year on a net basis versus last year.
Sprint’s [...]

Article courtesy of BARRONS.com: Tech Trader Daily

John Paulson Says Give It Up For Citigroup, The US Economy

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The investment in the former has made Paulson and Co over $1 billion since mid-2009 and the latter is on the up and up.

Citigroup was the fund’s most profitable bank holding last year, Paulson said in a letter to clients this month. “Citigroup demonstrates the upside potential of many of the restructuring investments we have added to our portfolio and our ability to generate above-average returns in large positions,” Paulson said in the letter. Paulson sold 82.7 million shares in New York-based Citigroup in the third quarter, leaving it with 424 million shares, according to filings. The bank was Paulson’s fourth- largest U.S. equity holding in the period.Paulson, which manages $35.9 billion, said it expects to see continued U.S. economic growth this year.

“We believe the U.S. economy is recovering and we anticipate continued growth,” the firm said in the letter.

Paulson Made More Than $1 Billion On Citigroup Stake

Article courtesy of Dealbreaker