Novatel Wireless Inc (NVTL) Message Board

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Technology Stocks : Novatel Wireless Inc (NVTL)

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To: VIXandMore who wrote (2)	10/28/2004 9:49:31 PM
From: Mr. Miller	of 6

NVTL guides above Q4 EPS and at the high end of Revenues. Q3 EPS estimates for NVTL were between 0.13 and 0.15, and NVTL reported 0.16. Q3 revenue estimates were between $28.45 million and $30.0 million, and NVTL reported $31.0 million. Both EPS and Revenues beat the estimates The consensus eps for the third quarter was 0.14(that was revised upward dramatically after blowout results from Q2), and recall that FY04 was at 0.27 before it was dramatically revised upward to 0.46. This number may have to be further revised upward since the first three quarters has already produced 0.29 and the CONSERVATIVE guidance for Q4 was for 0.16-0.18. Guidance for Q4 By the way, consensus for Q4 EPS is 0.16 and NVTL guided 0.16-0.18, which anyone can see is above the previous consensus estimates, not in line. NVTL also forecast revenues to be between $32.0 million - 34.0 million for Q4. The consensus forecast for Q4 is $32.91 million, so NVTL guided toward the high end of revenues. Perhaps the most important nugget from Q3 earnings report is the gross margins which have risen from the teens(just a few quarters ago) to 33% this quarter. NVTL is the only wireless modem company providing product to all the major mobile telecom companies worldwide. forbes.com <<<Banc of America Securities maintained a "neutral" rating on Novatel Wireless (nasdaq: NVTL - news - people ) and increased earnings estimates for 2004 and 2005, citing strong second-quarter results and momentum in 3G technology. The firm raised its 2004 earnings-per-share estimate to 46 cents from 27 cents and its 2005 earnings-per-share estimate to 80 cents from 60 cents. The target price for the wireless-technology company was raised to $24 from $18. Banc of America said it sees gains in acceptance of 3G technology, a wireless standard that enables faster data transfers. "Although we see catalysts as 3G gains traction and management continues to execute, we remain Neutral," it said. "We look for further share gains and margin improvement to get more constructive on the stock.">>>

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