Zacks Analyst Blog Highlights: Dell, SIRIUS XM Radio, ZOLL Medical, Medtronic and Philips

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Feb 16, 2011, 09:30 ET

CHICAGO, Feb. 16, 2011 /PRNewswire/ -- Zacks.com Analyst Blog features Dell Inc. (Nasdaq: DELL), SIRIUS XM Radio Inc. (Nasdaq: SIRI), ZOLL Medical (Nasdaq: ZOLL), Medtronic (NYSE: MDT) and Philips (NYSE: PHG).

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Here are highlights from Tuesday's Analyst Blog:

Dell Beats on EPS, Misses Revs

Dell Inc. (Nasdaq: DELL) reported fiscal 4th quarter 2011 and full-year results after the bell, touting its January-ended quarter as one of its "best ever." GAAP earnings came to 48 cents per share on revenues of $15.69 billion in the quarter. This beat the Zacks Consensus Estimate of 37 cents per share, but missed the revenue estimate of $15.76 billion.

The company saw 7% growth on the enterprise side in the quarter, to $4.6 billion. And while the business PC market has strengthened of late, it still represents just 29% of Dell's overall mix. The softer consumer PC market accounts for 71% of Dell's business.

Analysts had shown a positive bias toward quarterly earnings in the past week, with 3 upward revisions pushing the EPS estimate to 37 cents. But investors had been taking a "wait and see" approach before the bell, sending shares down roughly 1.5% during the day before closing the regular trading session at $13.91 (-1.28%).

But after a short recess on DELL trading after the earnings announcement was made, investors clearly like what they see. The stock is up over 5.5% in the after-market. Dell guided fiscal 2012 revenue growth up 5-9%, which is being welcomed in late trading, as well.

SIRIUS XM Posts Mixed 4Q

SIRIUS XM Radio Inc. (Nasdaq: SIRI) declared its financial results for the fourth quarter of 2010. Quarterly GAAP net loss was $81.5 million or 2 cents per share compared with a net income of $11.8 million or break-even in the prior-year quarter. However, fourth quarter adjusted (excluding special items) EPS of 2 cents was ahead of the Zacks Consensus Estimate of break-even.

Quarterly total revenue of $735.9 million was an improvement of 8.8% year over year, but was below the Zacks Consensus Estimate of $744 million. The year-over-year revenue growth was primarily attributable to an increase in subscriber base, higher sale of "Best of" programming, and rate increases to the company's multi-subscription and Internet packages.

Quarterly total operating expenses were $664.3 million compared with $592.5 million in the year-ago quarter. Operating income, in the fourth quarter of 2010, was $71.6 million compared with an operating income of $83.7 million in the year-ago quarter. Quarterly adjusted EBITDA was $144.5 million compared with $115.3 million in the prior-year quarter.

During fiscal 2010, SIRIUS XM generated $512.9 million of cash from operations compared with $433.8 million in fiscal 2009. Free cash flow (cash flow from operations less capital expenditures) in fiscal 2010 was $210.5 million compared with $185.3 million in fiscal 2009.

ZOLL's LifeVest Hits Milestone

Resuscitation devices maker ZOLL Medical's (Nasdaq: ZOLL) popular LifeVest wearable defibrillator has reached another key milestone as it has been reportedly prescribed to over 35,000 patients at high risk of sudden cardiac arrest ("SCA") by their physicians. The achievement underscores the sustained adoption of the device for treating this condition.

SCA, an abrupt loss of cardiac function, is one of the major causes of unexpected deaths. According to the American Heart Association, more than 700 people die from this condition each day in the U.S. Early defibrillation raises the chance of survival from just 5% to over 50%.

LifeVest is a lightweight device which is worn outside the body (rather than implanted in the chest) by patients at risk of SCA. The device continuously monitors the heart with electrodes (electric conductors) to detect life threatening hearth rhythms. On detection of an abnormal rhythm, LifeVest sends an electric shock to the heart to restore its normal rhythm.

The LifeVest defibrillator business, which has been ZOLL Medical's lifeblood, continues to grow at a healthy quarterly run rate with revenues rocketing 50% year over year in the most recent quarter, benefiting from increased awareness of the product, associated sales force enhancements and wide reimbursement coverage.

ZOLL Medical is a leading player in the global market for external defibrillators, which is worth more than $1 billion. The company is expanding its presence in the international markets, representing a major impetus for growth.

In the U.S. defibrillation market, ZOLL Medical competes with Physio-Control, a wholly-owned unit of Medtronic (NYSE: MDT), and Philips (NYSE: PHG). The company remains committed to expanding its product range to sustain growth in this market.

ZOLL Medical's solid fundamentals, its broad product range, healthy revenue/margin mix and upbeat prospect for LifeVest remain encouraging. Moreover, its significant international presence should also drive growth.

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