Monday, April 30, 2012
Sunday, April 29, 2012
Friday, April 27, 2012
Stock initially dropped 3% but has since recovered and closed at 31.43.
Thursday, April 26, 2012
As of April 9th, 2012
Wednesday, April 25, 2012
Monday, April 23, 2012
Although BSX missed revenue estimates, the company saw positive developments in the cardiac rhythm management (CRM) business, which accounts for 27% of the firm's revenues. The CRM market had been slowing, with Q4 CRM sales dropping 15%. This quarter CRM sales dropped 5%, which was better than expected, and management believes this may be the end of the fall in CRM sales. Additionally, Boston Scientific saw positive developments with the PROMUS Element Platinum stent system, which is key to UASBIG's investment thesis. Clinical trials showed the Element's superior efficacy to both the previous PROMUS offering and Abbott Laboratories' Xience V stent system. The Element stent system has been approved in both Europe and U.S. markets, and should begin to boost the interventional cardiology business this fiscal year. The firm also saw developments in the CRM unit with the release of the INGENIO pacemaker system in Europe.
Going forward, we expect to see an increase in top line revenues driven by the PROMUS Element stent system and a rebound in the CRM division. Additionally, gross margins are expected to increase as the company shifts from marketing the original PROMUS system to the Element system, which commands twice the margins of the previous offering. For the next fiscal quarter, management expects sales of $1.95 billion and adjusted EPS of $0.17.
-Ryan M. Kennedy
Sunday, April 22, 2012
Honeywell Chairman and CEO Dave Cote reports, “We've seen good momentum in the U.S. and our key high growth regions, which is more than offsetting softness in
Thursday, April 19, 2012
Verizon beats expectations, shares rise.
Verizon released earnings Thursday morning before the bell with EPS of 59 cents per share, beating consensus expectations by a penny. They had 4.6% year over year quarterly revenue growth, driven primarily from their wireless segment. The wireless segment had 7.7% year over year growth in service revenues; 8.9% year over year increase in retail service revenues, the highest growth rate in three years; and also saw data revenues up 21.1%. Operating margins were up to 28.6% due to a decrease in iPhone sales. They also saw increases of 501,000 net postpaid customer additions, which are the more lucrative customers for Verizon. Of postpaid subscribers, nearly 47% own smartphones, up from 43.5% last quarter. Verizon’s 4G LTE network continued expansion now reaching more than 200 million people in 230 markets, and also introduced five new 4G LTE devices.
Verizon’s Residential segment also saw growth as demand for their FIOS services led revenue growth. Consumer revenues grew 1.7%, and Global enterprise revenues grew .9%. Their strategic services which consist of cloud services, security and IT solutions, and strategic networking, grew 11.6% and represented 51% of global enterprise revenues.
Verizon continues to show growth potential with its 4G LTE network and its FIOS services, which should drive earnings and share price in the future. As iPhone sales drop they will see increased margins due to lower subsidized costs. Verizon is still the number one cell phone provider in the United States and that likely will not change in the near future. Verizon is up 52 cents (1.38%) heading into the close of trading.
Qualcomm projected third quarter estimates that fell below analyst expectations which subsequently led to a drop of 7% in share price after hours, despite beating expectations for the second quarter.
Second quarter revenues were $4.94 billion, up 28% year over year, and EPS came in at $1.01 per share, beating consensus EPS of $0.95 per share. Net Income of $2.23 billion was up 123% year over year. Qualcomm saw continued growth in their 3G and 4G smartphone chips, which saw Europe launch its first 4G smartphones this quarter and Verizon in the United States committed to vastly expand its 4G lineup.
Third quarter guidance for EPS is 61 cents per share which is low in comparison with analyst consensus of 77 cents per share. This is in large part due to a drop in revenue to $3.62 billion compared with consensus of $4.81 billion. This drop in revenue is attributed to the seasonality of demand for Qualcomm as well as an increase of supply has pushed manufacturing revenue for some orders into the fourth quarter.
Qualcomm has also increased FY EPS to a range of $3.41 to $3.56 per share from a prior range of $3.36 to $3.56. This change in guidance is due largely to higher estimated selling costs of their 3G and 4G chips.
Shares fell to as low as $62 but have since retraced to $65 in after market trading. Despite poor reactions due to third quarter guidance Qualcomm continues to be a top tier stock and should continue to outperform the market due to remaining a key player in the Smartphone industry.