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To: Carolyn who wrote (4271) 1/25/2005 9:32:49 PM
From: sandintoes Read Replies (1) of 4273
Eye On Stocks
Eye On Stocks For Wednesday, Jan. 26
Peter Kang, 01.25.05, 6:30 PM ET
Related Quotes
AV 15.15 - 0.21
FLEX 12.42 - 0.11
GLW 11.51 + 0.26
SIRI 6.24 + 0.15
TXN 21.12 + 0.35
XMSR 32.69 - 0.54
1/25/05 4:02:00 PM ET
Flextronics International (nasdaq: FLEX - news - people ) reported third-quarter earnings a penny above Wall Street estimates. The electronics manufacturing services (EMS) firm announced quarterly income of 20 cents per diluted share, on a non-GAAP basis, and sales of $4.277 billion. Analysts polled by Thomson First Call forecasted sales of $4.245 billion. Shares were up more than 4% in after-hours trading. "Competitively, we are in solid shape. Our major long-term initiatives, including our industrial parks, vertical integration and design activities, continue to work well," the company said in a statement. "[We] believe that we have solid growth in both sales and profits ahead of us." Flextronics provided fourth-quarter guidance of 15 cents to 18 cents per share, compared with the analysts' consensus of 16 cents per share.
Texas Instruments (nyse: TXN - news - people ) said fourth-quarter revenue increased 14% from the year-ago period and was bolstered by growth in its chip business. The tech giant reported sales of $3.15 billion and earnings of 28 cents per share, compared with analysts' estimates of $3.10 billion and earnings of 26 cents per share. Semiconductor sales were higher on increased demand for wireless products and high-definition TV components. Texas Instruments is Bear Stearns' top large-cap pick for 2005. "Near term, we believe the improving analog orders for the first quarter of 2005 and the increased adoption of DLP technology should have a positive impact on the stock," it said. "Longer term, we believe TI's less capital intensive manufacturing model and the increased penetration of key end markets (wireless, consumer, and broadband), which are outgrowing the semiconductor industry, should allow the company to outperform its semiconductor peers." Texas Instruments also announced a $2 billion stock buyback plan which will supplement its existing plan to repurchase $1 billion of its common stock.
Corning (nyse: GLW - news - people ) shares were down 3% in extended trading after the specialty glass and fiber optics company posted in-line earnings and said first-quarter results would fall at the low end of estimates. Corning reported non-GAAP earnings of 12 cents per share and revenue of $1.033 billion, compared with consensus earnings of 12 cents and revenue of $989 million. Sales in the first quarter will range from $980 million to $1.03 billion while earnings are pegged at 11 cents to 13 cents per share. Wall Street expects earnings of 13 cents per share and revenue of $1.02 billion.
Networking company Avaya (nyse: AV - news - people ) reported first-quarter earnings above Wall Street estimates. Avaya reported quarterly earnings of 20 cents per share, excluding special charges, and revenue of $1.148 billion. The analysts' estimate called for earnings of 18 cents per share and revenue of $1.122 billion. Morgan Stanley rates the company at "outperform" with a $20 price target price. "The migration to VoIP in the enterprise will accelerate over the next few years and take over a decade to complete, in our opinion," it said. "Avaya's product set, installed base, and recent acquisitions should position it to take share globally during this long-tailed transition."
Sirius Satellite Radio (nasdaq: SIRI - news - people ) will report fourth-quarter and 2004 results tomorrow. Wall Street expects the company to lose 16 cents per share in the fourth quarter on revenue of $29 million, compared with a year-ago loss of 14 cents per share on revenue of $5 million. Yesterday, Merrill Lynch reinstated coverage on Sirius at "buy" and said shares of the satellite radio provider will have more news catalysts than rival XM Satellite Radio Holdings (nasdaq: XMSR - news - people ) in 2005. "The stock should benefit from a pickup in the auto manufacturer rollout, new 3rd generation retail products, Howard Stern subscribers, and a focus on building advertiser relationships," Merrill said. The research firm's $7.50 price target for Sirius represents a 29% upside potential from current levels. XM is one generation ahead of Sirius, Merrill said, but the latter's focus on acquiring "very compelling programming and key on-air talent" will help it erode XM's first-mover advantage. "In our opinion, the Howard Stern contract was strategically important to build brand awareness and lock-in marquis programming--a strategy we expect to continue under the stewardship of Mel Karmazin."
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