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.
(Reuters) - Negotiations between Greece and its international lenders over reforms to unlock remaining bailout aid have made headway and
an agreement could be closer this month, a government official said on Sunday.
Prime Minister Alexis Tsipras's three-month-old government is under growing pressure at home and abroad to reach an agreement with European and IMF lenders over reforms to avert a national bankruptcy.
Talks have been painfully slow as the leftist-led government is resisting cuts in pensions and labour reforms that would clash with its campaign pledges to end austerity.
"There were very important steps made at the Brussels Group (talks) which bring an agreement nearer," the official said, declining to be named.
"All sides aim for an agreement at a Brussels Group level within May."
The talks between technical teams from Athens and EU/IMF/ECB lenders are expected to resume on Monday, the official said after the country's chief negotiators met with Prime Minister Alexis Tsipras.
A euro zone official also said there was convergence on some issues but sticking points remained and that talks were expected to continue through Wednesday.
Athens hopes that a successful conclusion of the negotiations at the so-called Brussels Group could lead to recognition of the progress by the Eurogroup of euro zone finance ministers and bring some liquidity relief.
Chimera Investment Corporation Reports Net Income of $67 Million or $0.33 Per Share, Core Earnings of $120 Million or $0.59 Per Share and GAAP Book Value of $17.14 Per Share for the First Quarter of 2015
4:05 PM ET, 05/11/2015 - Business Wire
NEW YORK--(BUSINESS WIRE)--May 11, 2015-- Chimera Investment Corporation (NYSE:CIM) today announced its financial results for the first quarter of 2015 as follows:
1st Quarter 2015 Financial Highlights
Average earning assets grew to $15.2 billion for the quarter ended March 31, 2015 from $10.0 billion in average assets for the year ended December 31, 2014 based on amortized cost Net income of $67 million, up from $6 million earned in the 4th quarter of 2014 Core earnings of $0.59 per share consistent with the 4th quarter of 2014(1) Net interest income of $183 million, up from $177 million in the 4th quarter of 2014 GAAP book value of $17.14 per share, down from $17.55 per share for the 4th quarter of 2014 Economic book value of $15.70 per share, down from $15.90 per share for the 4th quarter of 2014
The Company declared a common stock dividend of $0.48 per share for the quarter ended March 31, 2015. The annualized dividend yield on the Company’s common stock for the quarter ended March 31, 2015 was 12%.
Leverage was 3.7:1 and recourse leverage was 2.6:1 at March 31, 2015.
(1) Core earnings is a non-GAAP measure and is defined as GAAP net income excluding unrealized gains on the aggregate portfolio, impairment losses, realized gains on sales of investments, gain on deconsolidation, extinguishment of debt and certain other non-recurring gains or losses. Core earnings includes interest income and expense as well as realized gains or losses on derivatives used to hedge interest rate risk, management fees and general and administrative expenses. Core earnings is provided for purposes of comparability to other peer issuers, but has important limitations. Therefore, core earnings should not be viewed in isolation and is not a substitute for net income or net income per basic share computed in accordance with GAAP.
Weibo (WB) Reports In-Line Q1 EPS; Issues Light Q2 Revenue Outlook
4:32 PM ET, 05/14/2015 - StreetInsider
Weibo (NASDAQ: WB) reported Q1 EPS of $0.01, in-line with the analyst estimate of $0.01. Revenue for the quarter came in at $96.3 million versus the consensus estimate of $94.64 million.
Monthly active users ("MAU") were 198 million for the month of March 2015, up 38% year over year. Mobile MAU was 86% of total MAU in March. Daily active users ("DAU") were 89 million on average for the month of March 2015, up 34% year over year.
Weibo sees Q2 2015 revenue of $102 - $105 million, versus the consensus of $111.4 million.
NQ Mobile (NQ) Posts Breakeven Q1 Profit; Guides FY15 Revenue Above Consensus
5:02 PM ET, 05/19/2015 - StreetInsider
NQ Mobile (NYSE: NQ) reported Q1 EPS of $0.00, in-line with the analyst estimate of $0.00. Revenue for the quarter came in at $89.2 million versus the consensus estimate of $85 million.
As a reminder, beginning in the third quarter of 2014, the Company began presenting the operating metrics of average monthly active user accounts ("MAUs") as redefined to include many emerging businesses previously not included in the Company's user account metrics. The MAUs presented herein include the user accounts in Showself, NQ Live and Music Radar, among others. As such, the MAUs presented herein should only be compared to operating metrics in the third quarter of 2014 and thereafter and not be compared to operating metrics in earlier historical periods, because there is not a way to accurately compare such results. The MAUs for the period presented herein and going forward are expected to be better aligned with the key underlying trends of a mobile internet platform company focused on driving mobile consumer traffic and engagement that can be monetized. The MAU statistics do not include the users addressed by the installation of the Company's advertising SDK into third-party applications. These indirect users generate impressions and search traffic that the Company can monetize outside of the user accounts generated directly by the Company's own portfolio of products and applications.
Average Monthly Active User Accounts as of March 31, 2015: 175.4 million.
NQ Mobile sees FY2015 revenue of $455-460 million, versus the consensus of $443.0 million.
Sky-mobi Limited (MOBI) Reports Q1 EPS of RMB0.06
6:15 AM ET, 05/26/2015 - StreetInsider
Sky-mobi Limited (NASDAQ: MOBI) reported Q1 EPS of RMB0.06, versus RMB0.02 reported last year. Revenue for the quarter came in at RMB233 million versus the consensus estimate of RMB204.7 million
21Vianet Group (VNET) Misses Q1 Views
4:09 PM ET, 05/26/2015 - StreetInsider
21Vianet Group (NASDAQ: VNET) reported Q1 EPS of RMB0.12(US$0.02) per ADS, which may note compare to the analyst estimate of RMB0.21. Revenue for the quarter came rose 46.8% to RMB860.1 million (US$138.7 million) versus the consensus estimate of RMB899.44 million.
For the second quarter of 2015, the Company expects net revenues to be in the range of RMB886 million to RMB922 million, representing approximately 37% growth year-over-year at the mid-point. Adjusted EBITDA is expected to be in the range of RMB152 million to RMB172 million, representing approximately 23% growth year-over-year at the mid-point. For the full year 2015, the Company now expects net revenues to be in the range of RMB3.91 billion to RMB4.11 billion, representing approximately 39% growth over 2014 at the mid-point. Adjusted EBITDA for the full year 2015 is expected to be in the range of RMB760 million to RMB860 million, representing approximately 45% growth over 2014 at the mid-point. These forecasts reflect the Company's current and preliminary view, which may be subject to change.
Mr. Josh Chen, Founder, Chairman and Chief Executive Officer of the Company, stated, "Our year is off to a solid start with demand for our internet data center ("IDC") and cloud businesses driving top-line revenue growth and EBITDA expansion. For our IDC business, we had a strong quarter of cabinet sales and a robust pipeline. We further expanded our data center portfolio to a total of 22,024 cabinets at the end of the first quarter, representing a growth of 46.1% year-over-year. In the first quarter, we also extended the commercial operator agreement for public cloud services with Microsoft for four additional years. The extension further strengthens our leadership position in China's cloud computing services market and speaks to our unique competitive advantage in the market. However, we also experienced some softness in our MNS and CDN businesses this quarter, due to stronger than expected seasonality and the continued industry-wide decline in bandwidth prices. We are actively working with our customers and suppliers to further optimize our cost structure and address these challenges. As we enter seasonally strong second half of 2015, we are confident in our ability to re-accelerate our growth and continue executing on our strategies to capture a greater share of the growing data center and cloud services markets."
Mr. Shang-Wen Hsiao, Chief Financial Officer of the Company, commented, "We began the year with another quarter of solid growth, with total revenues growing by 46.8% year-over-year and adjusted EBITDA growing by 47.8% year-over-year. Our adjusted operating expenses as a percentage of revenues decreased from the fourth quarter of 2014. In addition, we continue to effectively manage our working capital, as days-sales-outstanding ("DSO") remained stable at 78 days in the first quarter of 2015. Furthermore, we completed the equity investments from Kingsoft, Xiaomi, and Temasek. These transactions not only provide us with capital that further strengthens our financial position, but also afford us additional opportunities in our IDC business and related services. Recognizing the ongoing expansion of internet usage, mobile traffic, and cloud services demand in China, we believe we are well-equipped to address the growing data needs of our customers and further improve our top line growth and profitability."
For earnings history and earnings-related data on 21Vianet Group (VNET