Stock Wizard

Molycorp Rallies On Renewed Takeover Chatter

noreply@blogger.com (Ken Jones) — Fri, 18 Jan 2013 18:24:00 +0000

Shares of Molycorp Inc. (NYSE: MCP) rallied more than 2% on Friday on renewed speculation that the company could be a takeover target. Molycorp, Inc., a development stage company, engages in the production and sale of rare earth oxides in the western hemisphere. Its rare earth products include oxides, metals, alloys, and magnets for various inputs in existing and emerging applications comprising clean energy technologies, multiple high-tech uses, defense applications, and water treatment technology. The company primarily owns and operates the Molycorp Mountain Pass facility, an open-pit mine containing rare earth deposits outside of China located in San Bernardino County, California. It also intends to produce and sell rare earth oxides and rare metals in Europe; and rare earth alloys in the United States. Stay tuned for more.

Full Disclosure: None.

Splunk Soars On Takeover Chatter

noreply@blogger.com (Ken Jones) — Fri, 11 Jan 2013 17:25:00 +0000

Shares of Splunk, Inc. (NASDAQ: SPLK) jumped more than 6% on Friday on speculation that the company could be a takeover target. Splunk, Inc. provides software solutions that provide real-time operational intelligence. It offers Splunk, an engine that collects, indexes, and harnesses machine data generated by physical, virtual or in the cloud IT infrastructure; and Splunk Storm, a cloud version of Splunk to analyze cloud based applications.

Full Disclosure: None.

Skullcandy Jumps On takeover Speculation

noreply@blogger.com (Ken Jones) — Wed, 09 Jan 2013 14:06:00 +0000

Shares of Skullcandy Inc. (NASDAQ: SKUL) surged as much as 6% in Wednesday's pre-market trading on speculation that the headphone maker could be a takeover target. David King, an analyst for Roth Capital, told Bloomberg the company's management may not be pushing for a sale, but added "you can't ignore" the possibility of a deal "when the stock's trading where it is and the value being as cheap as it is." A Skullcandy spokesperson declined to comment, the Bloomberg report said.

Skullcandy, Inc. develops and distributes headphones and other audio accessories to retailers in the United States and to distributors internationally.

Full Disclosure: None.

Alcoa Inc. (NYSE: AA): Q4 Earnings Preview 2012

noreply@blogger.com (Ken Jones) — Tue, 08 Jan 2013 15:50:00 +0000

Alcoa Inc. (NYSE: AA), the largest U.S. aluminum producer, is scheduled to release its fourth quarter earnings after the closing bell on Tuesday, January 7, 2013. Analysts, on average, expect the company to report earnings of 6 cents per share on revenue of $5.60 billion. In the year ago quarter, the company posted a loss of 6 cents per share on revenue of $5.99 billion.

Alcoa Inc. engages in the production and management of primary aluminum, fabricated aluminum, and alumina worldwide. The Company’s products are used worldwide in aircraft, automobiles, commercial transportation, packaging, building and construction, oil and gas, defense, and industrial applications.

In the preceding third quarter, the Pittsburgh, Pennsylvania-based company posted a loss of $143 million, or 13 cents a share, compared with a year-earlier profit of $172 million, or 15 cents a share. Excluding restructuring charges, discrete tax items and other special items, earnings from continuing operations in the latest period were three cents a share. Revenue slipped 9.1% to $5.83 billion. Analysts, on average, expected the company to report break-even per-share earnings and revenue of $5.54 billion.

At its last earnings call in October, the company said that it is on track to deliver against its financial and operational targets in 2012. "We're capitalizing on pockets of strong growth and achieving record profitability in our mid and downstream businesses," said Chairman and Chief Executive Klaus Kleinfeld.

The company's results have been hurt recently by a decline in aluminum prices--a result of weak demand in Europe, global uncertainties and excessive production--and higher input costs. To contend with sluggish prices, the aluminum giant said earlier last year that it would slash output by 12% in the U.S. and Europe. Alcoa is also relying more on high-margin end products less vulnerable to slumping metal prices, such as bolts and wheels for cars and airplanes.

Further, Alcoa has taken steps to cut costs and reallign production in order to remain competitive. In April last year, Alcoa announced that it would reduce its annual alumina production capacity by 390,000 metric tonnes, or about 2%, or to align production with smelter curtailments announced earlier last year and to reflect prevailing market conditions.

In OCtober last year, the company said that it continues to execute on curtailments in the upstream business, improving competitiveness and driving toward its stated goal of moving down the cost curve 10 percentage points in smelting and 7 percentage points in refining by 2015.

Full Disclosure: None.

Illumina Plunges As Buyout Hopes Dim

noreply@blogger.com (Ken Jones) — Mon, 07 Jan 2013 16:23:00 +0000

Shares of Illumina Inc. (NASDAQ: ILMN) slumped as much as 8% on Monday after after Roche CEO Franz Humer said that a deal is now "off the table" because the U.S. genetics company is demanding too much. "The other side wasn’t ready to retreat from their totally excessive price demands. Roche doesn’t do acquisitions that don’t create added value. We have self- discipline," German newspaper SonntagsZeitung reported. Illumina would have been a “nice-to-have” deal, not a “must-have” asset, SonntagsZeitung quoted Humer as saying. Illumina reportedly asked Roche for $75 per share and previously asked for $68 per share.

Full Disclosure: None.

Vivus Shares Soar As Pill Prescriptions Jump 68 Percent

noreply@blogger.com (Ken Jones) — Mon, 07 Jan 2013 15:50:00 +0000

Shares of Vivus Inc (NASDAQ: VVUS) surged as much as 10% on Monday after the company disclosed in a regulatory filing that prescriptions for its flagship obesity drug Qsymia jumped 68% to 12,978 for the four weeks ending Dec. 21, 12 from 7,749 for the four weeks ending Nov. 23, 12. The company also upwardly revised its estimate for total prescriptions shipped for the four weeks ending Oct. 26, 2012 to 5,394 from the previously reported 4,904, stating that the adjustment is based on additional information provided from a certified prescribing pharmacy.

Qsymia was approved by the U.S. Food and Drug Administration, or FDA, in July 2012. The Company sells Qsymia product in the U.S. through certified pharmacies in its Qsymia Home Delivery Network. Given the Company’s limited history of selling Qsymia and the lengthy product return period, the Company has not been able to reliably estimate expected returns of Qsymia at the time of shipment to the pharmacies. Therefore, the Company recognizes revenue when units are shipped by the pharmacies to patients through prescriptions, at which point, the product is not subject to return. The Company obtains the prescription fulfillment data directly from the pharmacies or their designated third party service providers to determine the amount of revenue to recognize.

Full Disclosure: None.

Monsanto Co. (NYSE: MON): Q1 Earnings Preview 2013

noreply@blogger.com (Ken Jones) — Sun, 06 Jan 2013 19:57:00 +0000

Monsanto Co. (NYSE: MON), the world's largest seed company, is scheduled to release fiscal first quarter earnings before the opening bell on Tuesday, January 8, 2011. Analysts, on average, expect the company to report earnings of 37 cents per share on revenue of $2.64 billion. In the year ago quarter, the company earnings of 23 cents per share on revenue of $2.44 billion.

Monsanto Company provides agricultural products for farmers in the United States and internationally. It operates in two segments, Seeds and Genomics, and Agricultural Productivity. Originally a chemical company, Monsanto has morphed into an agricultural giant, focusing on seeds and crop protection products.

In the preceding fiscal fourth-quarter, the St. Louis, Missouri-based company reported a loss of $229 million, or 42 cents a share, compared with a year-earlier loss of $112 million, or 21 cents a share. On an adjusted basis, the per-share loss was 44 cents, compared with 22 cents in the year-ago quarter. Revenue dropped 6 percent to $2.11 billion from $2.25 billion. Analysts, on average, expected the company to report loss of 42 cents per share on revenue of $3.36 billion.

At its last earnings call in October, Monsanto predicted full-year earnings of $4.18 to $4.32 a share. For calendar 2013, Monsanto anticipates a 5%-10% increase in corn prices, compared to 2012 levels. Free cash flow is expected to be within the $1.7-$1.8 billion range. The net cash provided by operating activities is expected to be in the range of $2.8 billion to $3.1 billion while net cash required by investing activities in the range of $1.1 billion to $1.3 billion. SG&A expenses would be roughly 42.55 billion and R&D expenses roughly $1.53 billion. The company maintains that its Dekalb brand of corn seeds result in a yield advantage of eight bushels per acre over its competitors.

Hugh Grant, chairman and chief executive officer for Monsanto said, "With more waves of innovation and global opportunities than ever before, I'm confident that by building off what we accomplished in 2012 we can achieve steady growth in fiscal year 2013 as we continue to deliver sustainable yield to our farmer customers."

Monsanto expects international sales to account for half of its growth in biotech seeds for fiscal 2013. The company has been expanding rapidly in emerging markets like Argentina, Brazil and other South American countries.

The company possesses a strong pipeline of seed products, which promise significant gains. Moreover, it has an impressive track record of delivering innovations to the marketplace.

Full Disclosure: None.

DryShips Soars On Iron Ore, China Hopes

noreply@blogger.com (Ken Jones) — Fri, 04 Jan 2013 18:33:00 +0000

Shares of DryShips, Inc. (NASDAQ: DRYS) soared as much 20% on Friday after Bloomberg reported that shipments of iron ore to China are poised to rise after inventories of the steelmaking raw material at local ports fell to the lowest since 2010. Stockpiles came to 71.3 million metric tons as of Dec. 21, according to figures from researcher Antaike Information Development. That was the lowest level since Sept. 10, 2010. China is the world’s biggest importer of the ore. The Baltic Dry Index (BDIY), a measure of costs to transport minerals and grains by sea, averaged the lowest since 1986 last year amid an oversupply of vessels and slowing global demand for commodities that supressed ship earnings. China imported almost two-thirds of the 1.1 billion tons of iron ore shipped by sea in 2012, according to Clarkson Plc, the biggest shipbroker.

Full Disclosure: None

Helix Energy Jumps On Takeover Speculation

noreply@blogger.com (Ken Jones) — Fri, 04 Jan 2013 18:17:00 +0000

Shares of Helix Energy Solutions Group Inc. (NASDAQ: HLX) jumped nearly 3% on Friday after Bloomberg reported that the company is turning into a takeover target after streamlining to focus on its expanding operations for offshore oil-well support. The Houston-based company agreed last month to sell its oil-and-gas unit and earlier exited a pipe-laying business, helping Helix reduce debt and center its operations on deepwater vessels and robotics for well maintenance. The divestments make the $2.2 billion company more appealing to a potential suitor such as Aker Solutions ASA (AKSO) or Technip SA (TEC) that may want to expand in marine contracting, said Capital One Financial Corp.

Helix Energy Solutions Group, Inc., together with its subsidiaries, operates as an offshore energy company. It provides reservoir development solutions and other contracting services to the energy market, as well as to its oil and gas properties. The company offers various contracting services in the Gulf of Mexico, North Sea, the Asia Pacific, and west Africa regions primarily in deepwater.

Full Disclosure: None

Longwei Petroleum Sinks After Fraud Allegation

noreply@blogger.com (Ken Jones) — Thu, 03 Jan 2013 19:29:00 +0000

Shares of Longwei Petroleum Investment Holding Limited (LPH) sank as much as 50% on Thursday after an article ("Seeking Alpha Article") published on seekingalpha.com on December 10, 2012, written by an author named "The Geo Team" (geoinvesting.com) alleged that the company's purported business operations are massively overstated and a brazen fraud. The author opined that the LPH is virtually worthless, completely un-investable and should be immediately delisted by the New York Stock Exchange.

Longwei Petroleum Investment Holding Limited, an energy company, engages in the wholesale distribution of finished petroleum products in the People’s Republic of China. The company is involved in the transportation, storage, and sale of finished petroleum products, including diesel, gasoline, fuel oil, and solvents from various petroleum refineries.

Full Disclosure: None

Abbot Labs Jumps On FDA Approval For Heart Stent

noreply@blogger.com (Ken Jones) — Thu, 03 Jan 2013 15:03:00 +0000

Shares of Abbott Laboratories (NYSE: ABT) surged as much as 3% on Thursday after the company announced that the XIENCE Xpedition Everolimus Eluting Coronary Stent System received U.S. Food and Drug Administration (FDA) approval and is launching immediately in the United States, providing physicians with a next-generation technology with the largest size matrix in the U.S. market. XIENCE Xpedition features a new stent delivery system designed to optimize deliverability, particularly in challenging coronary anatomies.

Abbott's XIENCE drug eluting stents, including the newly approved XIENCE Xpedition, are the first and only drug eluting stents in the U.S. market to be proven safe for direct stenting. Direct stenting, a technique in which the stent system is not preceded by another device (such as a balloon dilatation catheter) to prepare the lesion, has the potential to save time and resources in the catheterization laboratory.

Full Disclosure: None.

Molycorp Soars On Takeover Chatter

noreply@blogger.com (Ken Jones) — Wed, 02 Jan 2013 14:36:00 +0000

Shares of Molycorp, Inc. (NYSE: MCP) soared more than 10% on Wednesday on speculation that the company could be a takeover target.

Bloomberg News reported wednesda that Molycorp’s low valuation and the chance to lock in rare- earth resources could spur manufacturers from Nissan Motor Co. to Siemens AG to make a bid, according to Byron Capital Markets Ltd. After expanding its refining and processing operations with last year’s purchase of Neo Material Technologies Inc., the $1.3 billion company may even appeal to private-equity firms, Robert W. Baird & Co. said. Goldman Sachs Group Inc. projects that Molycorp could fetch $15 a share in a takeover, a 59 percent premium to its Dec. 31 close.

Molycorp, a development stage company, engages in the production and sale of rare earth oxides in the western hemisphere. Its rare earth products include oxides, metals, alloys, and magnets for various inputs in existing and emerging applications comprising clean energy technologies, multiple high-tech uses, defense applications, and water treatment technology. The company primarily owns and operates the Molycorp Mountain Pass facility, an open-pit mine containing rare earth deposits outside of China located in San Bernardino County, California. It also intends to produce and sell rare earth oxides and rare metals in Europe; and rare earth alloys in the United States.

Full Disclosure: None

Facebook Shares Slump As Users Flee Instagram After Privacy Outrage

noreply@blogger.com (Ken Jones) — Fri, 28 Dec 2012 16:02:00 +0000

Shares of Facebook, Inc. (NASDAQ: FB) slumped as much as 3% on Friday after data from the website AppData showed that Facebook-owned had a sharp drop in users on Christmas day. AppData, a site that tracks application usage, only tracks users who are logged into Instagram through Facebook. You don't have to log in through Facebook to use Instagram. According to AppData, Instagram had 14.5 million active users on Thanksgiving Day. That number had fallen to 12.5 million by Christmas. Facebook bought the popular photo-sharing service $1 billion in April this year.

Full Disclosure: None.

Cleantech Rallies After Company Receives Patent For New Production Technique

noreply@blogger.com (Ken Jones) — Thu, 27 Dec 2012 16:27:00 +0000

Shares of Cleantech Solutions International, Inc. (NASDAQ: CLNT) jumped more than 7% on Thursday after the company announced that it has recently received a new patent certificate for an innovative production technique enabling more-effective cloth washing in dyeing machines under high temperature and pressure. The new patent was issued by the State Intellectual Property Office of the People's Republic of China and was granted to the company's subsidiary, Wuxi Huayang Dyeing Machinery in November. The patent will provide the company with the exclusive use of this innovative production technique in dyeing equipment for a period of ten years.

Full Disclosure: None.

MGM Mirage (NYSE: MGM): An Excellent Long-Term Opportunity

noreply@blogger.com (Ken Jones) — Mon, 24 Dec 2012 14:57:00 +0000

MGM Resorts International (NYSE: MGM), the biggest casino owner on the Las Vegas Strip, operates a peerless portfolio of destination resort brands, including Bellagio, MGM Grand, Mandalay Bay and The Mirage with a market cap of $5.78 billion. The Company has significant holdings in gaming, hospitality and entertainment, owns and operates 15 properties located in Nevada, Mississippi and Michigan, and has 50% investments in three other properties in Nevada and Illinois. In addition to its 51% interest in MGM China Holdings, Limited, which owns the MGM Macau resort and casino and is in the process of developing a gaming resort in Cotai, Macau.

MGM continues to benefit from resurgence in gambling in Asia and in Las Vegas. Positive data in the US, including improved optimism in the gambling hotbed of Nevada, has sent stocks for casino companies with larger America presences up. Gambling revenue in Nevada rose 1.9% to $978.8 million in October, the state's Gaming Control Board reported Friday. On the Las Vegas Strip, which accounts for more than half the total, the take was up 3.6% to $580.7 million. Similarly, Macau Gaming Inspection and Coordination Bureau reported on December 3 that gambling revenue in November grew 8 percent to $3.5 billion, the highest single-month revenue figure ever recorded.

Macau is the only place in China where people can legally gamble at casinos. Though the VIP segment, which traditionally accounts for 70% of Macau’s gaming revenue has suffered in terms of growth, the mass market has remained strong as emerging Chinese middle class have continued to flock across the border into the southern Chinese enclave.

MGM China had a record third quarter with EBITDA growth of 5% year-over-year before branding fees, and CityCenter continues to show progress as well with record third quarter EBITDA from resort operations of $59 million, up 18% year-over-year. At ARIA, third quarter EBITDA was $47 million, a 17% increase over 2011. This was also the highest third quarter EBITDA since opening. Total casino revenue exceeded last year with net table games revenue up 4% and net slot revenue up 3%. ARIA benefited from a favorable table games hold impact of $8 million year-over-year, with gross table games hold percentage of 29.3 versus 25.5 last year.

During a conference call in October, Chief Executive Jim Murren said that qarly fourth-quarter trends were improving at it domestic resorts and forward convention booking pace is showing growth in 2013 and is further accelerating into 2014.

The company is ideally positioned to take advantage of both domestic and international opportunities, and is executing well on its business strategy. MGM has been working on a handful of key strategic development and expansion opportunities, including Cotai, Maryland, Massachusetts and Toronto. The company's Cotai project will have up to 500 tables, 2,500 slots, 1,600 rooms and a budget of approximately $2.5 billion to be spent over a timeframe of 30 to 36 months.

The firm has taken several steps to improve its financial position. The transaction will significantly reduce MGM’s interest expense burden by trimming high-coupon debt and improve its ability to generate cash. MGM Resorts, which has more than $13 billion in long-term debt, recently entered into a $4 billion amended credit agreement, issued $1.25 billion in new debt and retired older debt. The company has raised more than $8 billion in long-term financing during 2012. MGM anticipates saving approximately $230 million annually in reduced interest expense from this refinancing, which will allowing it to improve free cash flow and further enhance it balance sheet.

Full Disclosure: None.

Collective Brands Rallies On Takeover Speculation

noreply@blogger.com (Ken Jones) — Wed, 25 Jan 2012 19:09:00 +0000

Shares of Collective Brands (NYSE: PSS) climbed more than 2% on Wednesday on continued speculation that the company could be a takeover target. The New York Post reported recently that the company could be bought around $20/share. Citing sources close to the situation, the NYPost said the company is aiming to be sold as a whole rather than in parts. Among possible suitors: Wolverine Worldwide (NYSE: WWW) in combination with a PE firm such as Sun Capital or Golden Gate or a combination between Brown Shoe (NYSE: BWS), Finish Line (Nasdaq: FINL) and several other private-equity parties.

Full Disclosure: None.

Apple Shares Soar On Upbeat Earnings

noreply@blogger.com (Ken Jones) — Wed, 25 Jan 2012 15:09:00 +0000

Shares of Apple Inc. (NASDAQ: AAPL) surged more than 6% on Wednesday, a day after the iPhone maker reported net income of $13.1 billion, or $13.87 per share, compared with net income of $6 billion or $6.43 per share in the year-ago quarter. Revenue surged 73% to $46.3 billion. Analysts, on average, expected the company to report earnings of $10.08 per share on revenue of $38.85 billion for the quarter.

Apple said it shipped 37.04 million iPhones, 15.43 million iPads, 5.2 million Macs and 15.4 million iPods.

Looking ahead, Apple forecast revenue of $32.5 billion and earnings per share of $8.50.

Full Disclosure: None.

Suntech Power Jumps On Takeover Speculation

noreply@blogger.com (Ken Jones) — Fri, 04 Nov 2011 15:01:00 +0000

Shares of Suntech Power Holdings Co. Ltd. (NYSE: STP) surged more than 7% Friday on speculation that the company could be a takeover target. Suntech Power Holdings Co., Ltd., a solar energy company, engages in the design, development, manufacture, and marketing of photovoltaic (PV) products. The company also provides engineering, procurement, and construction services to building solar power systems for certain related party and third party customers. Stay tuned for more.

Full Disclosure: None.

First Solar Soars On Takeover Chatter

noreply@blogger.com (Ken Jones) — Wed, 02 Nov 2011 14:28:00 +0000

Shares of First Solar Inc. (NASDAQ: FSLR) soared more than 5% on Wednesday on speculation that the company could be a takeover target. First Solar, Inc. manufactures and sells solar modules using a thin-film semiconductor technology. It also designs, constructs, and sells photovoltaic solar power systems. The company’s solar modules employ a thin layer of semiconductor material to convert sunlight into electricity. Stay tuned for more.

Full Disclosure: None.

MasterCard Inc. (NYSE: MA): Q3 Earnings Preview 2011

noreply@blogger.com (Ken Jones) — Tue, 01 Nov 2011 18:16:00 +0000

MasterCard Inc. (NYSE: MA) is scheduled to release its third-quarter earnings before the opening bell on Wednesday, November 2, 2011. Analysts, on average, expect the company to report earnings of $4.82 per share on revenue of $3.94 billion. In the year ago quarter, the company reported earnings of $3.94 per share on revenue of $1.43 billion.

MasterCard Incorporated, together with its subsidiaries, provides transaction processing and related services to customers principally in support of their credit, deposit access, electronic cash and automated teller machine payment card programs, and travelers cheque programs.

In the preceding second-quarter, the Purchase, New York-based company's net income was $608 million, or $4.76 per share, compared to $458 million, or $3.49 per share, in the year-ago quarter. Revenue grew 22.1 percent to $1.67 billion from $1.37 billion in the same quarter last year. Analysts, on average, expected the company to report earnings of $4.22 per share on revenue of $1.55 billion.

MasterCard, like other payment solutions company, is benefiting from a broad trend away from cash and checks and toward electronic forms of payment. When purchases are made using debit and credit cards carrying the MasterCard logo, the company collects fees from each transaction. That makes the company's results sensitive to consumer spending. However, unlike credit-card companies, MasterCard doesn't lend money, so it wasn't hit hard by the credit crisis. Moreover, the company is cultivating new business in emerging markets.

MasterCard, which has a very small share of the debit-card market today, has been working to increase that business in the face of new restrictions. The company recently won the debit-card portfolio of regional bank Huntington Bancshares Inc. (NASDAQ: HBAN). The portfolio includes about 1.5 million consumer and business debit cards.

The company is emphasizing products aimed at affluent consumers as well as emerging categories like prepaid cards and mobile payments in an effort to drive growth. The credit card company is trying to convert more of the world's transactions from cash and checks to electronic payments and capture a larger share of those transactions. Currently 85% of retail transactions worldwide are made with cash or check, providing MasterCard with a big opportunity to capture more volume with its credit, debit and prepaid cards.

The company has been putting a bigger marketing effort behind its World Elite program, a rewards program offered to affluent consumers. The company also this summer launched its Priceless Cities program, which will allow MasterCard customers to gain access to special events using their cards.

Full Disclosure: None.

Garmin Ltd. (NASDAQ: GRMN): Q3 Earnings Preview 2011

noreply@blogger.com (Ken Jones) — Tue, 01 Nov 2011 12:59:00 +0000

Garmin Ltd. (NASDAQ: GRMN) is scheduled to release its third-quarter earnings before the opening bell on Wednesday, November 2, 2011. Analysts, on average, expect the company to report earnings of 50 cents per share on revenue of $618.09 million. In the year ago quarter, the company reported earnings of 70 cents per share on revenue of $692.36 million.

Garmin Ltd. and its subsidiaries design, develop, manufacture, and market global positioning system (GPS)-enabled products and other navigation, communication, and information products worldwide. It operates in four segments: Automotive/Mobile, Outdoor/Fitness, Marine, and Aviation. Garmin has about 55 percent to 60 percent of the U.S. market for navigation devices. TomTom NV is its main U.S. competitor. The company, being the largest GPS manufacturer in the world, benefits from economies of scale. This lowers the average cost per unit through increased production since fixed costs are shared over an increased number of goods.

In the preceding second-quarter, the Camana Bay, Cayman Islands-based company's net income was $109.48 million, or 56 cents per share, compared to $134.82 million or $0.67 per share, in the year-ago quarter. On a pro forma basis, the company earned 63 cents per share in the second quarter. Revenue slipped 8 percent to $674.10 million from $728.77 million in the same quarter last year. Analysts, on average, expected the company to report earnings of 66 cents per share on revenue of $633.75 million.

At its last earnings call in February, Garmin lowered its fiscal 2011 earnings outlook to a range of $2.00 to $2.15 per share from the prior range of $2.25 to $2.50 per share. The company said the revised outlook is due primarily to the acceleration of net deferred revenues associated with its bundled product offerings. However, Garmin raised its full-year forecasts to $2.5 billion to $2.6 billion, from the prior range of $2.4 billion to $2.5 billion. The revised outlook primarily reflects the acquisitions of Navigon AG and Tri-Tronics Inc.

Personal navigation device makers like Garmin have been facing increased pressure from GPS-equipped smartphones. Cannibalization was always expected and Garmin too expected it. It therefore launched its own version of a smartphone, called Garminfone and nuviphone.However, the company abandoned the smartphone business after failing to find its way in the highly competitive sector. Instead, Garmin decided to go along in the footsteps of archrival TomTom. In line with this strategy, the company is now making apps for the smartphone market.

PNDs are also reaching a saturation point in the developed markets of North America and Europe. Garmin has now decided to pursue growth in the emerging markets of Asia and South America, where the chances of success with a premium-priced product will be limited.Garmin expects the North American personal navigation device market to decline 25 percent this year and the European market to shrink by a high single digit to 10 percent.

To offset the slumping demand, Garmin has been trying to reduce its reliance on personal navigation devices while turning itself from a one-product firm to a content and services franchise by offering live traffic and mapping services. In August, the company said that its efforts to revive waning sales of its once popular personal navigation devices will only bear fruit in the second half of next year

Among other developments, Garmin recently acquired the distributor of its automotive, recreation, fitness and marine products in southern Africa as well as Garmap Ltd., a South African mapping and mobile applications provider. Garmin said that the deal will strengthen its presence in a rapidly growing region.

Full Disclosure: None.

Microsoft Corp. (NASDAQ: MSFT): Q1 Earnings Preview 2012

noreply@blogger.com (Ken Jones) — Wed, 19 Oct 2011 19:55:00 +0000

Microsoft Corporation (NASDAQ: MSFT), the world's largest software maker, is scheduled to release its fiscal first-quarter earnings after the closing bell on Thursday, October 20, 2011. Analysts, on average, expect the company to report earnings of 68 cents per share on revenue of $17.25 billion. In the year ago period, the company reported earnings of 51 cents per share on revenue of $16.20 billion.

Microsoft Corporation develops, manufactures, licenses, and supports a range of software products and services for various computing devices worldwide. The company is organized into five operating segments: Windows and Windows Live, Server and Tools, Online Services, Microsoft Business, and Entertainment and Devices.

In the preceding fiscal fourth-quarter, the Redmond, Washington-based company's net income was $5.87 billion, or 69 cents per share, compared to $4.52 billion, or 51 cents per share, in the year-earlier quarter. Revenue climbed to $17.37 billion from $16.04 billion. Analysts, on average, expected the company to report earnings of 58 cents per share on revenue of $17.25 billion.

The company recently announced 25% increase in its quarterly dividend in a bid to lift its stagnant stock price.

Though Microsoft operates in a number of markets, including online advertising and video game systems, its financial results are still dominated by the business units that includes its Windows operating system software and Office software suite. In May, the company previewed the upcoming version of its new Windows operation system, internally code-named Windows 8 that focuses on optimization for touchscreen hardware, including tablet PCs. Windows 8 is expected to launch in 2012. It will be a unified OS for computers as well as tablets. We can also expect to see some news about that in the earnings preview.

However, Microsoft’s mobile platform faces stiff competition from both Apple’s iPhone, and Google Inc.’s (NASDAQ: GOOG) increasingly popular Android mobile software. In February, Microsoft and Nokia Corp. (NYSE: NOK) announced a broad strategic partnership under which Nokia will use adopt Windows Phone as its principal smartphone strategy and Symbian will become a franchise platform. Microsoft has received some criticism for being slow to attack the tablet market as Apple’s iPad and a host of competing slate or tablet devices are poised to reshape the software industry.

Last month, the company signed a definitive agreement with Samsung Electronics Co. Ltd. to cross-license the patent portfolios of both companies, providing broad coverage for each company's products.

The company is trying hard to capture a bigger share of the online search advertising market. Bing currently has slightly less than 4% market share worldwide while Yahoo Search which is powered by Bing has close to 6% global market share. While Bing’s combined market share is much lower than Google, it is growing year over year with deals like the partnership with Baidu (NASAQ: BIDU). Microsoft is already having a a search-advertising partnership with Yahoo Inc.(NASDAQ: YHOO).

Microsoft is also taking initial steps towards cloud computing to counter a threat from Google and others. The company recently launched beta version of its Office 365 applications, which include Web-hosted email and other tools available via subscription. With the launch of Office 365, Microsoft hopes to become the dominant player in the cloud based productivity software market which is currently led by Google.

Meanwhile, The Xbox 360 with the Kinect addon has been a huge hit and has been the number one selling console in the United States for over an year now.

Full Disclosure: None.

Apple Inc. (NASDAQ: AAPL): Q4 Earnings Preview 2011

noreply@blogger.com (Ken Jones) — Mon, 17 Oct 2011 21:48:00 +0000

Apple Inc. (NASDAQ: AAPL) is scheduled to release its fiscal fourth-quarter earnings after the closing bell on Tuesday, October 18, 2011. Analysts, on average, expect the company to report earnings of $7.28 per share on revenue of $29.45 billion. In the year ago quarter, the company reported earnings of $4.64 per share on revenue of $20.34 billion. Tuesday’s earnings report will be the company’s first since the death of co-founder and chairman Steve Jobs, who passed away recently following a protracted battle with cancer.

Apple Inc., together with subsidiaries, designs, manufactures, and markets personal computers, mobile communication and media devices, and portable digital music players, as well as sells related software, services, peripherals, networking solutions, and third-party digital content and applications worldwide.

In the preceding fiscal third-quarter, the Cupertino, California-based company's net income was $7.31 billion, or $7.79 per share, from $3.25 billion, or $3.51 per share, in the year-ago quarter. Revenue soared 82% to $28.6 billion for the quarter. Analysts, on average, expected the company to report earnings of $5.73 per share on revenue of $24.75 billion.The company sold 20.34 million iPhones in the quarter, representing 142 percent unit growth over the year-ago quarter. Apple sold 9.25 million iPads during the quarter, a 183 percent unit increase over the year-ago quarter. The Company sold 3.95 million Macs during the quarter, a 14 percent unit increase over the year-ago quarter. Apple sold 7.54 million iPods, a 20 percent unit decline from the year-ago quarter.

At its last earnings call in July, Apple forecast revenue of about $25 billion and earnings of about $5.50 per share.

Apple continues to make innovative devices which appeal to consumers in a big way. The company is expected to post strong profit and revenues in the latest quarter, benefiting from the sales of its tablet computer iPad as well as the latest version of its wildly popular smartphone, iPhone. Their iPhone sales are nowhere near their maturity and are still in the growth phase. Additionally, enterprise support for iPhone has continually increased.The iPads are just in their infancy. The Mac too is on the move, taking market share from the Windows crowd quarter after quarter.The solid performance of Apple's fast-expanding store base also provides a positive feedback loop in terms of attracting new customers. Apple’s push into ads and TV could become big new sources of growth.

The main driver of sales in the quarter will be the iPhone and iPad. The iPad currently rules the tablet market. Sales of the Mac computer are expected to get a boost from the back-to-school season, while the iPod may continue to show a decline. The company recently released its latest iPhone, the iPhone 4S in 7 countries. The company plans to launch in 22 additional countries on Oct. 22. The company sold more than four million iPhone 4S's in the first three days of sales, the most ever for any iPhone launch. Apple expects the iPhone 4S to be available in 70 countries by the end of 2011. However, the new iPhone will not be included in the results for the company’s fourth fiscal quarter, which closed at the end of September.

Apple also launched the latest version of its mobile operating system, iOS 5, last week. In its statement Monday, the company said more than 25 million customers are now using the latest update to the software, and 20 million of those have signed up for the company’s iCloud service, which provides online storage and synchronizing services.

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Tibco Software Spikes On Takeover Speculation

noreply@blogger.com (Ken Jones) — Wed, 05 Oct 2011 14:21:00 +0000

Shares of Tibco Software, Inc. (NASDAQ: TIBX) rose more than 2% on Thursday on speculation that the company could be a takeover target. Tibco Software Inc. provides middleware and infrastructure software worldwide. The company’s standards-based software offerings enable customers to create configurable applications from software infrastructure and deliver real-time insights.

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Alcoa Inc. (NYSE: AA): Q3 Earnings Preview 2011

noreply@blogger.com (Ken Jones) — Wed, 05 Oct 2011 13:57:00 +0000

Alcoa Inc. (NYSE: AA) is scheduled to release its third quarter earnings after the closing bell on Tuesday, October 11, 2011. Analysts, on average, expect the company to report earnings of 27 cents per share on revenue of $6.39 billion. In the year ago quarter, the company reported earnings of 9 cents per share on revenue of $5.29 billion.

Alcoa Inc. engages in the production and management of primary aluminum, fabricated aluminum, and alumina worldwide. The Company’s products are used worldwide in aircraft, automobiles, commercial transportation, packaging, building and construction, oil and gas, defense, and industrial applications.

In the preceding second quarter, the Pittsburgh, Pennsylvania-based company's net income was $322 million, or 28 cents per share, compared to $136 million, or 13 cents per share, in the year-ago quarter. Revenue totaled $6.6 billion, up 27 percent over second quarter 2010 and 11 percent over first quarter 2011. Analysts, on average, expected the company to report earnings of 35 cents per share on revenue of $6.32 billion.

At its last earnings call in July, the company said that it was well ahead of its 2011 financial targets. Alcoa projected continued growth in all major end markets on a global basis. Alcoa also reaffirmed its 2011 global aluminum demand forecast of a 12% growth. "Although the economic recovery is uneven, the overall outlook for Alcoa - and for aluminum - remains positive," said Chief Executive Officer Klaus Kleinfeld. "Demand for aluminum continues to rise and so does growth in our major markets. These factors support our projection that aluminum demand will grow 12 percent this year and will double by 2020."

Demand for aluminum is on the rise, driven by the push by automotive and aerospace companies to create lighter and more fuel efficient vehicles and also the light metal being used broadly in electronic products. Aluminum producers see emerging markets such as China, Brazil and Russia as a huge source of revenue as their economies continue to expand.

Recently, Alcoa announced plans to accelerate growth in its midstream Global Rolled Products businesses by shifting away from a regional, asset-based structure to a market-based structure, effective immediately. The company will focus on five key global markets, with particular emphasis on emerging economies.

Last month, the company announced that it will expand its Davenport, Iowa rolled products plant to meet rising demand from the automotive market. The expansion is expected to be completed by the end of 2013. Also, Alcoa signed a Letter of Intent with the China Power Investment Corporation (CPI) to form Joint Venture, which will focus on producing high-end fabricated aluminum products in China. Further terms of the joint venture were not disclosed.

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