The Zacks Analyst Blog Highlights:Intel, Nokia, Netflix, Vodafone Group and Microsoft
CHICAGO, Oct. 16, 2013 /PRNewswire/ -- Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include the Intel Corp. (Nasdaq:INTC-Free Report), Nokia Corporation (NYSE:NOK-Free Report), Netflix, Inc. (Nasdaq:NFLX-Free Report), Vodafone Group Plc. (Nasdaq:VOD-Free Report) and Microsoft Corp. (Nasdaq:MSFT-Free Report).
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Here are highlights from Tuesday's Analyst Blog:
Intel Beats but Trims Forecast
Intel Corp. (Nasdaq:INTC-Free Report) announced better than expected earnings and revenue after the closing bell today. The company posted a third quarter EPS of $0.58, and revenues of $13.48 billion, beating the Zacks consensus estimates of $0.53, and $13.46 billion respectfully. This reverses the recent trend of negative earnings surprises by this company over the past two quarters.
The main drivers behind the earnings beat was cost control, and stable margins. It was announced that CAPEX was once again trimmed from $11 billion to $10.8 billion for 2013. Moreover, gross margins are expected to be 61% give or take a few basis points.
On a negative note, management decreased revenue guidance for the fourth quarter, from $14 billion to $13.7 billion. It appears as though they are not anticipating a significant revenue stream from their next generation Tablet Chip, given that the launch is to take place during the fourth quarter. Furthermore, we are awaiting information regarding their smartphone story which will have a strong impact on earnings starting in early 2014.
Specifically, we are looking forward to the data on PC Builds (are they flat, or up 4% like INTC guided), and to what extent the back to school PC demand impacted the top line. The biggest issue we are anxious to see is what the impact of ARM processors will have on Intel, which could expose a significant loss of market share for the company.
In afterhours trading INTC is down slightly (just over 1%) on moderate volume. Zacks will have a fully detailed report exploring all the data posted early tomorrow morning.
Nokia to Offer Free Netflix Services
Nokia Corporation (NYSE:NOK-Free Report) has decided to offer Netflix, Inc.'s (Nasdaq:NFLX-Free Report) video streaming services free of cost, for one whole year, to its Vodafone Group Plc.'s (Nasdaq:VOD-Free Report) customers in U.K. Only Vodafone customers buying the Nokia Lumia 1020 handset can take advantage of this new offer.
The Lumia 1020 is powered with a 41-MP camera and PureView technology. It also features a 1.5 GHz dual-core S4 processor with wireless charging facility. Lackluster demand for the high-priced Lumia 1020 has forced the Finnish handset manufacturer to promote its high-end smartphone either by slashing its handset prices from $299 to $199, or by offering lucrative free online Netflix services to its customers. Moreover, with the holiday season ahead, Nokia will be rolling out more such lucrative deals which in turn may consolidate its market position.
On the other hand, the collaboration with Nokia will also benefit Netflix as the company will easily foray into the European market, following a highly successful stint in the U.S. market.
Over the last few months, Nokia has launched a number of exciting smartphones and featured phones. In the second quarter of 2013, the company sold only 7.4 million Lumia smartphones and 53.7 million Mobile Phones, each down 27% year over year. The average selling price (ASP) in the Smartphones segment was $205.6, up 4% year over year. Mobile Phones ASP was $34, down 16% year over year.
We believe such promotional bundle plans employed by Nokia will help the company to boost sales in the upcoming holiday season.
Recently,
Microsoft Corp.
-
) announced its decision to acquire Nokia Corp.'s handset business for $7.2 billion (5.44 billion euros). The deal is expected to close in the first quarter of 2014, subject to approval by Nokia's shareholders and regulators.
Nokia currently carries a Zacks Rank #3 (Hold).
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.
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