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Strategies & Market Trends : Piffer OT - And Other Assorted Nuts
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To: Original Mad Dog who wrote (47385)8/1/2000 1:46:24 PM
From: John Pitera  Read Replies (3) of 63513
 
OMD.....what's this ...I got a good post mention -g-

here is some positive MOT commentary following up our
general discussion yesterday: they are talk about revenues
moving from this 6 year flat 30 billion plateau are to
39.5 billion and then to 47 bill. in 2001.

MOT is also talking about margins expanding to 10% in
their Personal Communications unit, which is constructive
and they are mentioning margin expansion in Q3, so
we have constructive guidance and it comes down to can
you trust these guys, because they have made promises
before that they have not kept.

the other issue is with NOK, ERICY, Samsung and others
blowing up and with this chip slowdown that the genius at
SSB nailed on the head, is MOT somehow coming out of
the dark end of the tunnel on the front end of the curve???

Let's ask for Jorjie's gut check on this one!!!

---------

Motorola (MOT) 34 9/16 +1 5/16: Motorola is trading up this morning after a positive analyst meeting. The company said it is comfortable with revenue and EPS forecasts for 2000 of $39.5 bln and $1.05; and for 2001 of $47.0 bln and $1.43. This should not come as too big of a surprise as the company had already provided guidance for 2000 in its Q2 conference call last month. However, since then Nokia and Ericsson warned they would not meet Q3 forecasts but the meeting should allay fears that Motorola would come out with a Q3 warning. We expect a strong second half for Motorola as the company expects its Personal Communications Segment to reach an operating margin of 10% by Q4. When you run the numbers, the second half looks impressive. Each 1% improvement in operating margin for this segment even assuming flat sales with Q2 of $3.3 bln computes to a penny per share on the EPS line assuming a 32% tax rate. With a 4% operating margin in Q2, this adds $0.06 per share to EPS by 4Q even with no progress in its other segments. Operating margin is also expected to expand sequentially in 3Q. The semiconductor and broadband communications segments should do well in the second half as well. As for semiconductors, the company recently raised its industry forecast to 30% from 25% in 2000 and expects 25% growth in 2001. The Broadband Communications segment should continue to benefit from the synergies being realized from the recent combination with General Instrument. Motorola looks attractive at current levels as it trades at just 24x forward earnings on expected 19% top line growth next year. -- Robert J. Reid, Briefing.com
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