re: TTM Revenue Growth in Communications Sector
What growth?
It goes without saying that the communications sector as a whole has been especially hard hit in the last 2 years.
In 2001 only 3 communications equipment manufacturers (Cisco, Nokia and JDS Uniphase), increased top line, and for most, this year has been straight down hill.
This year Qualcomm and Nokia are the only two with a clear shot at increasing top line for both the fiscal year and calendar year, and Cisco, Nokia and Qualcomm are the only 3 with TTM net margin.
Nokia moved from being the 6th largest communications manufacturer in 2000 to number 2 in 2001, and it appears that they will finish the year in the number one slot. They are the number 1 revenue producer on a TTM basis.
Multex ranks 35 companies in the communications equipment sector in their ProVestor Plus Market Guide. With CQ2 earnings now all in I just compared the revenue produced by the top 10 communications equipment companies ranked by market cap at mid-year last year on a TTM revenue basis last year to this year. This is the result:
ProVestor Plus Industry Overview: July 24, 2001
TTM TTM Market Net
Rev Rank Revenue Cap. Margin P/E
1. Motorola (MOT) $34,831 $39,767 (1.8)% NM
2. Alcatel (ALA) $28,405 $19,363 3.6% 17.6x
3. Lucent (LU) $27,662 $26,906 (18.1)% NM
4. Ericsson (ERICY) $27,449 $36,373 (2.4)% 24.4x
5. Nokia (NOK) $27,387 $89,286 13.1% 24.2x
6. Nortel (NT) $26,919 $23,863 (78.9)% NM
7. Cisco (CSCO) $23,715 $133,718 (0.9)% NM
8. Corning (GLW) $7,843 $12,799 3.9% 26.7x
9. JDS Uni (JDSU) $12,636 $3,156 NM NM
14. Qualcomm (QCOM) $2,746 $46,080 3.1% 922.0x
ProVestor Plus Industry Overview: August 7, 2002
REV
TTM TTM Market Net RNK
Rev Rank Revenue Cap. Margin P/E 7/01
1. Nokia (NOK) $29,044 $53,462 8.1% 23.4x 5
2. Motorola (MOT) $27,597 $24,979 (19.6)% NM 1
3. Ericsson (ERICY) $22,283 $6,533 (11.6)% NM 4
4. Alcatel (ALA) $20,723 $5,748 (19.8)% NM 2
5. Cisco (CSCO) $18,915 $95,042 10.0% 51.3x 7
6. Lucent (LU) $15,199 $5,003 NM NM 3
7. Nortel (NT) $12,835 $4,003 NM NM 6
9. Corning (GLW) $4,277 $2,998 (35.0)% NM 8
20. JDS Uni (JDSU) $1,098 $3,758 NM NM 9
11. QUALCOMM (QCOM) $2,817 $19,436 4.4% 169.0x 14
Sector devastation gets even more dramatic if you step back to year ending 2000 which like 1999 was a banner year for wireless from a revenue generating perspective even though stock prices had already started to crumble for the sector.
Actual Actual 2002 TTM TTM
2000 2001 mid-year Revenue
Revenue Revenue Revenue Rank
1. Motorola $37,580 $30,004 $27,597 2
2. Lucent $33,813 $21,294 $15,199 6
3. Nortel $30,275 $17,511 $12,835 7
5. Alcatel $29,580 $22,597 $20,723 3
2. Ericsson $29,026 $22,117 $22,283 4
6. Nokia* $28,517 $27,801 $29,044 1
7. Cisco $18,928 $22,293 $18,915 5
8. Corning $7,273 $6,272 $4,277 9
9. JDS Uni $1,430 $3,233 $1,098 20
X. QUALCOMM* $3,197 $2,680 $2,817 11
* For the 2001 financial year, Nokia's net sales totaled EUR 31.2 billion (USD 27.77 billion). For the 2000 financial year, Nokia's net sales totaled EUR 30,376 billion (USD 28,517). This is a good example of one of the idiosyncrasies of holding a European company that trades in the US in ADR's.
** In 2000 Qualcomm revenue from mobile phones is included for 1 quarter. Qualcomm revenue peaked in 1999 at $3,937,000 but in that year they had two quarters of revenue from infrastructure spun to Ericsson and 4 quarters of revenue from mobile phones which was spun to Kyocera in the following year.
It should also be noted that Lucent, Nortel, Ericsson et al have spun off some divisions.
- Eric - |
