Research In Motion is likely to report a disappointing February quarter according to Jeffries & Company analyst Peter Misek, and the company may soon pre-announce results as a warning. “We are cutting our RIM estimates and target based on our belief that there is a greater than 50% chance that RIM will negatively pre-announce the February quarter,” Misek wrote in a note to investors on Thursday. “We believe sales of both RIM’s low-end and higher-end phones continue to be challenged.” Read on for more. More →
Cisco announced on Tuesday that it will layoff 9% of its workforce, or 6,500 jobs, in an effort to boost profits. That figure is lower than original speculation that the company would cut 10,000 employees. Cisco made the move as part of an effort to cut $1 billion in annual costs while spurring profit growth, Bloomberg reported. 2,100 of the 6,500 employees have agreed to an early-retirement program. Additionally, Cisco plans to sell a Juarez, Mexico-based manufacturing facility to Foxconn. The move will transfer 5,000 workers elsewhere but will not result in job cuts. Earlier this year, the company laid-off 550 additional employees when it announced that it was killing off its Flip camera arm in an effort to restructure its consumer business. More →
HTC is getting the job done. The company reported Q1 earnings this morning, and the Taiwanese handset maker saw staggering growth in nearly all metrics. During the first-quarter of 2011, the company shipped 9.7 million units, a 192% increase from the same quarter last year and a 6% increase from the previous holiday quarter. The company also posted revenues of NT$104.16 billion, up 174% year-over-year and 0.1% quarter-over-quarter. Gross profits and total assets also jumped 162.2% and 75.1% respectively year-over-year. Not a bad little quarter for HTC. The company expects shipments to be between 11 million and 11.5 million units in Q2, which would represent a 100+% increase year-over-year. More →
LG struggled in 2010, but it’s slowly righting the ship in 2011. The firm reported its Q1 2011 earnings on Wednesday, and its operating profit of 131 billion won was the first positive return in the past three quarters. LG attributed the change to successful cost-reduction efforts and steady performance across all four of its businesses. The firm reported 13.2 trillion won in revenues, a 0.4% decline year-over-year. Its LG’s mobile communications business posted a loss of 101 billion won, an improvement over the 261 billion won loss the firm noted during the same period in 2010. Handset sales were down 9.2 percent year-over-year and 14.3 percent quarter-over-quarter, and the firm said it shipped 24.5 million phones, a 10% drop year-over-year and a 20% decline quarter-over-quarter. LG hopes the launch of its Optimus Black and Optimus 3D handsets will improve those figures during Q2. Despite shipping more televisions in Q1, the world’s second largest TV manufacturer attributed its 20.6% decline in home entertainment sales to slower demand and a decline in average selling price. LG’s home entertainment company posted an 82 billion won operating profit during the first quarter, which LG said was fueled by its line of 3D and Smart TVs, as well as cost cutting measure the company has taken. Hit the jump for the full release. More →
Reuters is reporting that this quarters pedestrian earnings filed by electronics retailer RadioShack has something to do with the wireless industry. Citing RBC Capital analyst Scot Ciccarelli, the publication notes that “RadioShack gave up a lot of compensation from AT&T and Sprint to carry T-Mobile [equipment], and this partnership doesn’t appear to be panning out the way management expected.” The news comes nearly one year after RadioShack executive Jim Gooch stated that T-Mobile had “materially breached its contract” with the retailer. RadioShack has lowered its earnings estimates for fiscal year 2011 — analysts cite weak demand and stiff competition in the retail and online spaces as potential causes. More →
Microsoft on Thursday announced its earnings for the second quarter of the company’s 2011 fiscal year. In the quarter, which ended on December 31st, 2010, Microsoft saw record revenue of $19.95 billion, up from $19 billion in the same quarter last year. Operating income slid slightly, however, from $8.51 billion in the second quarter of Microsoft’s 2010 fiscal year to $8.17 billion last quarter. Diluted earnings per share were up to $0.77 compared to $0.74 in the same quarter a year prior. “We are enthusiastic about the consumer response to our holiday lineup of products, including the launch of Kinect,” said Microsoft CFO Peter Klein in a statement. “The 8 million units of Kinect sensors sold in just 60 days far exceeded our expectations. The pace of business spending, combined with strong consumer demand, led to another quarter of operating margin expansion and solid earnings per share growth.” Microsoft also noted that its Business Division grew 24% year-over-year, and Office 2010 is the fastest-selling version of Microsoft Office in company history. Microsoft’s Entertainment & Devices Division grew 55% year-over-year on solid Xbox 360 console and accessory sales. Hit the break for Microsoft’s full press release. More →
AT&T on Thursday reported its fourth-quarter 2010 earnings, revealing a modest 2.1% year-over-year growth in consolidated revenue. Profits fell substantially to $1.09 billion or $0.18 per share in the fourth quarter of 2010, from $2.7 billion or $0.46 per share in the same quarter in 2009. Excluding unusual items, however, AT&T earned $0.55 per share — a penny above analyst estimates. The nation’s No. 2 carrier activated 4.1 million iPhone handsets in the quarter, while Apple iPad and Samsung Galaxy Tab activations came in at 442,000 combined. Net wireless subscriber additions totalled a record 2.8 million, and AT&T was home to 95.5 million wireless subscribers as of the end of the year. The carrier added 8.9 million wireless customers in 2010, its best year ever. Hit the break for AT&T’s full press release. More →
Shares of Verizon Communications stock slid over 1% in after-hours trading Tuesday morning as the company reported its fourth quarter earnings. Despite almost doubling profit from $2.37 billion in the fourth quarter of 2009 to $4.65 billion in 2010, earnings of $0.54 per share missed the Street’s consensus of $0.55 per share and revenue fell 2.6% to $26.4 billion. Subscriber growth of 872,000 net postpaid customers crushed Wall Street’s consensus, however, which sat in the mid-600,000s. “Verizon ended 2010 with strong results, driven by solid execution across all our businesses,” Verizon CEO Ivan Seidenberg said in a statement. “The fourth quarter capped a strong second half of the year, resulting in improved earnings, solid momentum and an even stronger balance sheet. Verizon Wireless produced another quarter of impressive growth, with record-high profitability, as we continue to drive higher smartphone adoption and data use. Following another solid quarter in our wireline businesses, we are optimistic about opportunities to continue to expand wireline margins.” Verizon also noted that only 26% of Verizon Wireless’ 83 million postpaid wireless subscribers owned smartphones at the close of 2010. This creates a tremendous opportunity for the carrier as it prepares to launch the iPhone 4 next month. Hit the break for Verizon’s full press release. More →
Just one week ago, RBC Capital Markets Managing Director Mike Abramsky sent a price target revision to investors upping the firm’s target for Apple stock from $365 to $395. Following Apple’s monster quarter, RBC issued a new revision — this time raising its target to $425. Apple’s conservative second-quarter guidance of $22 billion still beat the Street’s $21 billion, and Abramsky points out that Mac shipments grew faster than Windows PC shipments for the 19th consecutive quarter. The firm now expects Apple’s 2011 fiscal year revenue to come in at $99 billion, up from its earlier estimate of $90.8 billion, and FY12 revenue estimates have been upped from $103.3 billion to $108 billion. Abramsky also notes that while Jobs’ medical leave may have a near-term impact on Apple’s stock, the company’s huge momentum remains intact.
Apple reported its earnings for the first quarter of its 2011 fiscal year last night, posting revenue of nearly $27 billion on record sales. But as is often the case, much of the juicy stuff came from the question and answer session following the call, where analysts try their best to delve into areas not covered by Apple’s report or its press release. Apple fans who weren’t privy to the topics covered in the Q&A session will be happy to know that market watcher Seeking Alpha has issued a full transcription of the call from start to finish. Analysts didn’t manage to get any state secrets out of the crew from Cupertino, of course, but there were a few peaks among the valleys. Speaking of valleys, Piper Jaffray analyst Gene Munster even managed to work in a subtle question about Apple CEO Steve Jobs’ leave, wondering just how prepared the company is right now for the long haul. Spoiler alert: COO Tim Cook’s response was that Apple is magic. Seriously. Hit the read link for the full transcript. More →
Research In Motion reported its third quarter earnings Thursday evening, and it beat Wall Street’s estimates in several key areas. The BlackBerry maker’s revenue was up 40% year-over-year to $5.5 billion on record shipments of 14.2 million devices — also up 40% year-over-year. This beat the street’s consensus of $5.4 billion in revenue and shipments of 14 million. The $317 average selling price of RIM’s BlackBerry smartphones beat the street’s consensus of $310, though RIM added 5.1 million subscribers during the quarter, which fell below the street’s consensus of 5.2 million. Total subscriber count was 55 million, however, which is up 49% year-over-year. RIM expects fourth quarter revenues of $5.5 to $5.7 billion and 14.3 to 14.9 devices shipped.
“RIM delivered upside surprise on ASPs and GMs — both key metrics,” wrote Mike Abramsky, Managing Director at RBC Capital Markets, in a note to investors. “Importantly, Q4 guidance calls for Q/Q growth in both revenue and EPS on healthy margins, above street and investor expectations. We believe street estimates should come up tomorrow, given the healthy Q4 guide and likelihood that more analysts reflect PlayBook into their estimates.”
Hit the break for the full press release from RIM. More →
HTC reported a record quarter Friday as its 2010 smartphone shipments were more than double the previous year. HTC saw record revenue in Q4, topping $3.3 billion on shipments of 9.9 million units. The company reports that it shipped almost 25 million total units in its fiscal 2010. HTC, which went public just three years ago, has quickly built a smartphone empire on the back of Google’s Android operating system. HTC is now expanding to also build smartphones powered by Microsoft’s new mobile OS, Windows Phone 7, but it will continue to use Android as its main operating system. “We believe the overall pie is still big enough to have at least three to four tier-1 players enjoy the growth momentum,” the company said in a statement. Clearly, HTC has no plans to relinquish its place among those tier-1 players. More →
Motorola announced its Q3 results on Thursday and while the seemingly imminent arrival of the Verizon iPhone weighs heavily on investors’ minds, Motorola managed to report its best quarter in some time. Sales in the third quarter were up 13% year over year to $4.9 billion and phone revenue came in at $2 billion, up 20% from the year prior. Motorola shipped 9.1 million cell phones in Q3, 3.8 million of which were smartphones. Smartphone shipments beat the Street’s estimates, which typically fell between 3.5 and 3.6 million. Motorola also stated that its total cash on hand rose to $9 billion. Motorola’s business relies heavily on its current deal with Verizon Wireless, where its DROID-branded smartphones are a central draw that Verizon spends big marketing dollars on. Should Verizon finally manage to launch a CDMA version of the Apple iPhone next year, which is looking increasingly likely, it could spell trouble for Moto. More →