House & Home
House and Home
House and Home
Fri, October 8, 2010
Thu, October 7, 2010
PepsiCo, Novatel Wireless, Sierra Wireless, Qualcomm and L.M. Ericsson AB
CHICAGO--([ BUSINESS WIRE ])--Zacks.com Analyst Blog features: PepsiCo Inc. (NYSE: [ PEP ]), Novatel Wireless Inc. (Nasdaq: [ NVTL ]), Sierra Wireless Inc. (Nasdaq: [ SWIR ]), Qualcomm Inc. (Nasdaq: [ QCOM ]) and L.M. Ericsson AB (Nasdaq: [ ERIC ]).
Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: [ http://at.zacks.com/?id=4579 ]
Here are highlights from Thursdaya™s Analyst Blog:
Pepsico Reports In-Line
PepsiCo Inc. (NYSE: [ PEP ]), which has the world's largest portfolio of food and beverage brands, delivered robust third quarter 2010 results for the 12-week period ending on September 4, 2010.
New York-based PepsiCoa™s core earnings advanced to $1.22 per share in the quarter from $1.09 registered in the year-ago period, in-line with the Zacks Consensus Estimate. The year-over-year growth reflects the acquisition of its two anchor bottlers, broad-based gains across its snack and beverage portfolio in key international markets, disciplined investments and prudent cost controls.
Based on the reported quartera™s results, PepsiCo reaffirms earnings per share growth of 11%a"12% on the basis of core constant currency from its fiscal 2009 earnings of $3.71 per share.
The quarterly total sales jumped 40% to $15.5 billion in the quarter from $11.1 billion in the prior-year quarter, demonstrating strong growth across its businesses.
In the quarter, PepsiCo registered an operating profit of $2.8 billion, up 25% compared with $2.2 billion in the earlier-year period.
Novatel Unveils 4G Platform
Recently, Novatel Wireless Inc. (Nasdaq: [ NVTL ]) has launched an innovative product portfolio for customer broadband access capable of supporting next-generation (4G) super-fast wireless broadband networks of WiMAX and LTE. The portfolio includes LTE embedded modules, USB devices and WiMAX-capable MiFi Intelligent mobile hotspots.
Just two weeks ago, Novatel has introduced Ovation MC545 USB modem for Dual-Carrier HSPA+ networks. Ovation MC545 theoretically supports downlink speed of 42 Mbps and uplink speed of 5.7 Mbps. This device supports the 900, 1900 and 2100 MHz frequency bands and is designed to provide connectivity anywhere within the operator's network. Another advantage of Ovation MC545 is that it is the industrya™s smallest dual-carrier HSPA+ modem.
According to our analysis, proper execution of cost structure and expected launch of 4G (LTE) embedded products are likely to benefit the companya™s earnings power in future reporting quarters. Management announced that it has already won a design contract for LTE enabled-product from a Tier 1 manufacturer. All these products are expected to be introduced in late 2010 and may help the company to expend its margins in 2011.
Novatel has also decided to launch MiFi OS with five tier 1 wireless operators in the fourth quarter 2010. This will enable software developers to use MiFia™s open CGI to access the on-board processing capabilities of this intelligent mobile hotspot.
However, intensifying competition for embedded modules is the major concern for Novatel. In addition to its traditional rival Sierra Wireless Inc. (Nasdaq: [ SWIR ]), the company is facing significant challenges from newly launched products by large manufacturers including Qualcomm Inc. (Nasdaq: [ QCOM ]) and L.M. Ericsson AB (Nasdaq: [ ERIC ]). Loss of market share in the embedded solutions market resulted in lower ASP, that in turn reduced the second quarter 2010 gross margin to 18.9% compared to 22.1% in the year-ago quarter. Novatel forecasted 20% gross margin for the third quarter 2010, well below its traditional 28% range.
We maintain our long-term Neutral recommendation for Novatel. Currently it is a short-term Zacks #3 Rank (Hold) stock.
Want more from Zacks Equity Research? Subscribe to the free Profit from the Pros newsletter: [ http://at.zacks.com/?id=5514 ].
About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today: [ http://at.zacks.com/?id=5516 ]
About Zacks
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leonard Zacks. As a PhD in mathematics Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at [ http://at.zacks.com/?id=4580 ].
Visit [ http://www.zacks.com/performance ] for information about the performance numbers displayed in this press release.
Follow us on Twitter: [ http://twitter.com/zacksresearch ]
Join us on Facebook: [ http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts ]
Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.
