In a report published Thursday, Morgan Stanley analysts upgraded the rating for Nokia Corporation
from Equal-Weight to Overweight, while raising the price target from #$%$6.30 to #$%$8.70. The analysts believe that the new Nokia story is largely "misunderstood."
Investors seemed to have bought Nokia shares due to upside potential from patents with Samsung and Apple. With Nokia entering into a deal to purchase Alcatel Lucent SA
, "the equity story of Nokia is changing to a long restructuring journey" and may not appear that appealing in the short-term. Hence, investor response to the deal has been mixed.
"While the story is now different, we find it more appealing than before AND more appealing than Ericsson, its closest peer," the analysts said.
In the report Morgan Stanley noted, "We previously argued that Nokia's product portfolio was narrow...With Alcatel, Nokia now has exposure to the #2 edge routing player, taking share in both edge and core, a strong footing in the consolidating optical market, and a duopoly position in the growing wireline access market."
"In the US, Nokia will now supply to all big four wireless operators and now has enough scale to compete with Ericsson and Huawei on 5G. The larger Nokia will have doubled its patent portfolio too – which makes the patent story more credible. On a relative basis, we find this product portfolio stronger than Ericsson on paper in a consolidating market," the analysts wrote.
While saying that the restructuring journey "is less risky than it looks," the analysts commented that Nokia's share price does not reflect the 25 percent accretion from the deal, the potential of 18 percent EPS CAGR from 2016 to 2019 and the #$%$10bn cash pile.
Herbalife Ltd. HLF, +3.39% shares rose in the extended session Thursday after quarterly earnings topped Wall Street estimates but were tempered by forecast sales declines. Herbalife shares gained 1.7% to $35.42, after being up earlier as much #$%$, on moderate volume. The nutritional supplement company reported adjusted fourth-quarter earnings of $1.41 a share on revenue of $1.13 billion. Analysts surveyed by FactSet expected earnings of $1.22 a share on revenue of $1.16 billion. Herbalife, however, forecast a sales decline of 12.5% to 15.5% in the first quarter, and 6% to 9% for the year. Herbalife forecast adjusted earnings of $1.30 to $1.40 a share for the first quarter and $5.30 to $5.70 for the year, while analysts expect $1.30 a share for the first quarter and $5.07 for the year.
NQ Mobile (NQ) Tops Q4 EPS by 1c; Guides FY15 Revenue Above Expectations
5:01 PM ET, 03/18/2015 - StreetInsider
NQ Mobile (NYSE: NQ) reported Q4 EPS of $0.03, $0.01 better than the analyst estimate of $0.02. Revenue for the quarter came in at $89.7 million versus the consensus estimate of $83 million.
Average Monthly Active User Accounts as of December 31, 2014: 160.8 million
"We are pleased to report record revenues both for the fourth quarter and the full fiscal year of 2014, as we continued our transition toward the traffic-based mobile entertainment business," said Dr. Vincent Wenyong Shi, Chairman, Chief Operating Officer and Acting Chief Financial Officer of NQ Mobile. "With the challenging year of 2014 now behind us, our transition is in full swing as we firmly further execute our various strategic initiatives. In addition to our top-line growth, we were also encouraged to see sequential improvement for our margins that indicates stabilization of profitability. We believe we are well-positioned to capture the growth opportunities in the mobile internet landscape."
NQ Mobile sees FY2015 revenue of $450 - $455 million, versus the consensus of $424.0 million.
YRC Worldwide (YRCW) Tops Q4 EPS by 42c
4:16 PM ET, 02/05/2015 - StreetInsider
YRC Worldwide (NASDAQ: YRCW) reported Q4 EPS of $0.16, $0.42 better than the analyst estimate of ($0.26). Revenue for the quarter came in at $1.22 billion versus the consensus estimate of $1.24 billion.
(NYSE: MTG) reported Q4 EPS of $0.19, $0.04 better than the analyst estimate of $0.15. Revenue for the quarter came in at $240.36 million versus the consensus estimate of $237.51 million. Curt S. Culver, CEO and Chairman of the Board of Mortgage Guaranty Insurance Corporation ("MGIC") and MTG, said, "I am pleased to report that in 2014 the company continued to build on the progress we have made regarding many of the challenges we have been facing. Notably we have returned to annual profitability while maintaining a solid statutory capital position and low expense ratio. For the year, new insurance written and risk in force increased while new delinquent notices, paid claims, and the delinquent inventory decreased." Culver added, "I am encouraged by the positive trends in home prices and employment and am enthusiastic about the opportunities for growth and success for MGIC, and the mortgage insurance industry in 2015 and beyond."
Renren (RENN) Reports Q4 Revenue of $17.2M, OQ1 Rev. Guidance Misses
5:46 PM ET, 03/18/2015 - StreetInsider
Renren (NYSE: RENN) Q4 Adjusted net income was US$43.2 million, compared to an adjusted net income of US$104.7 million in the corresponding period in 2013. Revenue for the quarter came in at $17.2 million versus the consensus estimate of $16.3 million.
The Company expects to generate revenues in an amount ranging from US$11 million to US$13 million in the first quarter of 2015, representing 44.2% to 52.8% year-over-year decline.
(Street sees Q1 revenue of $29.72 million)