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CSCO | Cisco Falls 3 | Investing com Cisco NASDAQ CSCO fell by 3 03 to trade at 46 97 by 13 19 18 19 GMT on Friday on the NASDAQ exchange
The volume of Cisco shares traded since the start of the session was 11 28M Cisco has traded in a range of 46 97 to 48 25 on the day
The stock has traded at 48 4400 at its highest and 44 9800 at its lowest during the past seven days |
CSCO | Cisco Falls 3 | Investing com Cisco NASDAQ CSCO fell by 3 09 to trade at 45 66 by 15 51 20 51 GMT on Monday on the NASDAQ exchange
The volume of Cisco shares traded since the start of the session was 19 56M Cisco has traded in a range of 45 63 to 47 25 on the day
The stock has traded at 48 4400 at its highest and 44 9800 at its lowest during the past seven days |
CSCO | Cisco Earnings Revenue beat in Q1 | Investing com Cisco NASDAQ CSCO reported first quarter earnings that beat analysts expectations on Wednesday and revenue that topped forecasts
The firm reported earnings per share of 0 75 on revenue of 13 07B Analysts polled by Investing com anticipated EPS of 0 72 on revenue of 12 87B That compared to EPS of 0 61 on revenue of 12 14B in the same period a year earlier The company had reported EPS of 0 7 on revenue of 12 84B in the previous quarter
For the year Cisco shares are up 15 74 outperforming the S P 500 which is up 0 67 year to date
Cisco follows other major Technology sector earnings this month
On November 1 Apple reported fourth quarter EPS of 2 91 on revenue of 62 9B compared to forecasts of EPS of 2 78 on revenue of 61 46B
Microsoft earnings beat analyst s expectations on October 24 with first quarter EPS of 1 14 on revenue of 29 08B Investing com analysts expected EPS of 0 96 on revenue of 27 88B
Stay up to date on all of the upcoming earnings reports by visiting Investing com s earnings calendar |
VZ | United States Cellular USM Q2 Earnings In Line Sales Top | United States Cellular Corp NYSE USM a subsidiary of Telephone Data Systems Inc NYSE T posted mixed financial results in the second quarter of 2017 While the top line surpassed the Zacks Consensus Estimate the bottom line met the mark GAAP net income came in at 12 million or 14 cents per share compared with a net income of 27 million or 32 cents per share in the year ago quarter However quarterly adjusted earnings per share of 17 cents were in line with the Zacks Consensus Estimate Quarterly total revenue of 963 million was down 3 year over year outpacing the Zacks Consensus Estimate of 950 6 million Quarterly Service revenues decreased 4 to 740 million Revenues from Equipment sales increased 2 to 223 million Quarterly operating expenses decreased 1 to 958 million Operating income was a mere 5 million compared with 30 million in the prior year quarter Total cell sites in service were 6 421 compared with 6 415 at the end of 2016 Total company owned towers were 4 044 compared with 4 040 at the end of 2016 Cash FlowIn the quarter under review cash from operations came in at 159 million compared with 98 million in the prior year quarter Quarterly free cash flow was 92 million compared with 23 million in the year ago quarter LiquidityUnited States Cellular exited the second quarter of 2017 with cash and cash equivalents of 472 million compared with 586 million at the end of 2016 Total debt was 1 624 million compared with 1 629 million at the end of 2016 The debt to capitalization ratio at the end of second quarter 2017 was 0 30 compared with 0 31 at 2016 end ARPU ChurnQuarterly postpaid ARPU average revenue per user decreased to 44 60 from 45 19 at the end of 2016 Postpaid ARPA average revenue per account was 119 73 compared with 120 67 at the end of 2016 Postpaid churn declined to 1 13 from 1 41 recorded at the end of 2016 Prepaid ARPU increased to 33 52 from 33 25 recorded at the end of 2016 Prepaid churn decreased to 4 93 in the reported quarter from 5 44 at 2016 end Subscriber StatisticsUnited States Cellular exited the second quarter of 2017 with a subscriber base of 5 023 000 compared with 5 031 000 at the end of 2016 Postpaid subscriber base totaled 4 478 000 compared with 4 482 000 at 2016 end Meanwhile prepaid subscriber base totaled 484 000 flat year over year In the reported quarter United States Cellular gained a net of 23 000 postpaid subscribers compared with a net loss of 2 000 customers in the year ago quarter The company gained 3 000 prepaid customers in the same quarter as against 4 000 users in the prior year quarter Guidance for 2017United States Cellular expects total operating revenue in the band of 3 800 4 000 million Adjusted EBITDA is projected at 700 800 million while capital expenditure is estimated at around 500 million The company projects operating cash flow in the range of 550 650 million United States Cellular Corporation Price Consensus and EPS Surprise
Recent DevelopmentUnited States Cellular currently holds a Zacks Rank 2 Buy You can see The company has submitted an application to the Federal Communications Commission FCC for a six month special temporary authority STA to conduct trial runs in the 3 5 GHz band in some areas of Maine and North Carolina Major U S telecom operators are currently exploring ways to commercialize usage of 3 5 GHz unlicensed wireless spectrum Verizon Communications Inc NYSE VZ is planning to deploy small cells both low power and high power using the 3 5 GHz band Meanwhile in Mar 2017 the FCC awarded AT T Inc NYSE T a license to test a 3 5GHz network 5 Trades Could Profit Big League from Trump Policies If the stocks above spark your interest wait until you look into companies primed to make substantial gains from Washington s changing course Today Zacks reveals 5 tickers that could benefit from new trends like streamlined drug approvals tariffs lower taxes higher interest rates and spending surges in defense and infrastructure |
VZ | What Like Ahead For Telecom ETFs | The U S telecommunications industry is currently balanced with almost equal proportions of positive and negative influences This year we expect this industry to witness growth more or less in line with the broader market
Positive Factors
At present the U S telecom industry enjoys several positive attributes First the new telecom regulatory body Federal Communications Commission FCC has given enough indications that it will be less stringent compared with the Obama administration and is likely to roll back several regulations of the previous regime Second the less restrictive nature of the FCC will aid mergers and acquisitions which are likely to spur growth in 2017 Third President Trump has decided to improve broadband availability in rural areas Rural broadband development will be an element of his ambitious 1 trillion infrastructure plan he will submit to the Congress soon Read
Negative Factors
However several near term headwinds prevail in the telecom industry The chief ones include growing price competition for wireless services that are likely to reduce carriers revenue growth in 2017 Leading cable MSOs multi service operators have decided to enter the wireless field this year which is likely to intensify competition in an already saturated market Further capital spending by U S telecom carriers may be muted in 2017 4G LTE wireless penetration is currently 83 in North America This can primarily be attributed to most carriers intention to upgrade to the 5G wireless network standard which requires massive investment However a full phased 5G network deployment is unlikely before 2020
Internet of Things IoT The Next Growth Driver
IoT which enables any physical electronic device with a valid IP address to transfer data seamlessly over a wireless network is fast gaining market traction and bringing about fundamental changes in business models Next generation superfast wireless networks 4G LTE LTE A upcoming 5G will provide the primary impetus to the telecom industry In this context IoT holds the potential to be the numero uno factor in driving growth in the space Superfast 5G mobile networks will be of utmost importance in the management of exponential growth in IoT Read
Unlimited Data Plan War
Wireless consumers pay millions extra in the form of added surcharges taxes monthly fees and carrier price hikes every year The practice seems to have peaked and carriers are still looking for ways to fetch more from their customers Several consumer groups have criticized extra fees because these are easily overlooked and lead to higher than advertised price payments The U S telecom market continues to witness intense pricing competition as success depends largely on technical superiority quality of services and scalability Read
ETFs to Tap the Sector
Against this backdrop investors seeking to tap the growth potential of the highly competitive telecom sector may take a closer look at the ETF approach to reap maximum benefit from investing in this sector This technique can help to spread out assets among a wide variety of companies and reduce company specific risks for a very low cost Below we highlight the ETFs in this sector in greater detail for Telecom ETF investors
iShares Global Telecommunications ETF
IXP is one of the most popular Telecom ETF available in the market Launched in Nov 2001 this ETF tracks investment results before fees and expenses corresponds to the price and yield performance of the S P Global 1200 Telecommunications Sector Index The fund has nearly 331 72 million of assets under management and an average trading volume of roughly 26 660 shares a day in the last 3 months The fund charges an expense ratio of 47 basis points a year
The fund holds 31 stocks in its portfolio and has a concentrated approach in the top ten holdings with 71 16 of the asset base invested in them Among individual holdings top stocks in the ETF include AT T Inc NYSE T Verizon Communications Inc NYSE VZ and Vodafone Group LON VOD Plc with asset allocation of 18 72 15 40 and 6 03 respectively Integrated Telecommunication Services Wireless Telecommunication Services and Alternative Carriers are the three major sectors with asset holdings of 71 78 26 45 and 1 36 respectively This ETF offers a dividend yield of 3 76
Vanguard Telecommunication Services ETF
Another popular fund in the Telecom ETF space is VOX Launched in Sep 2004 this ETF seeks to track the performance corresponding to the benchmark MSCI US Investable Market Telecommunication Services 25 50 Index It has assets under management of nearly 1 346 40 million and an average trading volume of roughly 105 491 shares a day in the last 3 months The fund charges an expense ratio of 10 basis points a year
The fund holds 28 stocks in its portfolio and has a concentrated approach in the top ten holdings with 69 70 of the asset base invested in them Among individual holdings top three stocks in the ETF are AT T Verizon and Level 3 Communications Inc Integrated Telecommunication Services Alternative Carriers and Wireless Telecommunication Services are the three major sectors with asset holdings of 61 80 23 20 and 15 00 respectively This ETF offers a dividend yield of 3 33
SPDR S P Telecom NYSE XTL ETF
Incepted in Jan 2011 XTL ETF tries to match the returns of the S P Telecom Select Industry Index before expenses The fund manages an asset size of nearly 72 20 million and an average trading volume of roughly 12 222 shares a day in the last 3 months The fund charges an expense ratio of 35 basis points a year
The fund holds 52 stocks in total in its basket However this ETF is not following any concentrated approach as the top ten stocks hold only 25 33 of the asset base invested in them Among individual holdings top stocks in the ETF include Applied Optoelectronics Inc Infinera Corp and Ubiquiti Networks Inc with asset allocation of 3 45 2 55 and 2 52 respectively Communications Equipment Integrated Telecommunications Services Alternative Carriers and Wireless telecommunication Services are the four sectors with asset holdings of 62 21 15 26 12 92 and 9 39 respectively This ETF offers a dividend yield of 1 23
iShares US Telecommunications ETF
Incepted in May 2000 IYZ ETF tracks investment results before fees and expenses corresponds to the price and yield performance of the Dow Jones US Select Telecommunications Index The fund manages assets worth of more than 474 49 million and an average trading volume of roughly 479 580 shares a day in the last 3 months The fund charges an expense ratio of 44 basis points a year
The fund holds 20 stocks and has a concentrated approach in the top ten holdings with 63 09 of the asset base invested in them Among individual holdings top stocks in the ETF include AT T Verizon and Level 3 Communications with asset allocation of 10 50 10 45 and 6 37 respectively The three major sectors of this ETF include Integrated Telecommunication Services Wireless Telecommunication Services and Alternative Carriers with asset holdings of 50 77 27 30 and 21 86 respectively This ETF offers a dividend yield of 2 85
Fidelity MSCI Telecom Services Index ETF
Incepted in Oct 2013 FCOM ETF tracks investment results before fees and expenses corresponds to the performance of the MSCI USA IMI LON IMI Telecommunication Services 25 50 Index The fund manages assets worth of nearly 115 80 million and an average trading volume of roughly 40 778 shares a day in the last 3 months The fund charges an expense ratio of 8 basis points a year
The fund holds 27 stocks and has a concentrated approach in the top ten holdings with 72 08 of the asset base invested in them Among individual holdings top stocks in the ETF include Verizon AT T and Level 3 Communications with asset allocation of 23 96 22 88 and 4 41 respectively Diversified Telecommunication Services and Wireless Telecommunication Services are the two major sectors of this ETF with asset holdings of 84 91 and 13 67 respectively This ETF offers a dividend yield of 2 75
More Stock News Tech Opportunity Worth 386 Billion in 2017
From driverless cars to artificial intelligence we ve seen an unsurpassed growth of high tech products in recent months Yesterday s science fiction is becoming today s reality Despite all the innovation there is a single component no tech company can survive without Demand for this critical device will reach 387 billion this year alone and it s likely to grow even faster in the future
Zacks has released a brand new Special Report to help you take advantage of this exciting investment opportunity Most importantly it reveals 4 stocks with massive profit potential |
VZ | AT T T Inks Deal With Communications Workers Of America | U S telecom behemoth AT T Inc NYSE T and the Communications Workers of America CWA finally approved a four year contract with the telco s Pacific Bell and Nevada Bell subsidiaries
This new agreement was signed on Jul 14 after extensive discussions between AT T the CWA and a federal mediator provided through the Federal Mediation and Conciliation Service
The contract will include 17 000 wireline and DirecTV employees in California and Nevada Per the deal AT T would provide a series of pay raises improvements in job security and retirement benefits continued affordable healthcare and other improvements for AT T West and DirecTV West workers therein
Notably with this AT T has sealed 31 different labor agreements since 2015 covering over 145 000 employees This was the first proposed contract for DirecTV workers since AT T s acquisition of the pay TV operator
The finalization of such agreements is expected to help the service provider solidify its relationship with its union workforce and encourage the employees to continue with the existing labor contract
Other News
Going forward AT T has agreed to acquire media giant Time Warner Inc NYSE TWX in an 85 4 billion cash and stock deal If the proposed merger finally goes through the combined entity will become a major player in the consolidated telecom media space and might be a competition to Comcast Corporation NASDAQ CMCSA who acquired NBC Universal in 2011
In fact AT T s 5G trials in 2017 and plans to launch 3GPP Mobile 5G Services in late 2018 along with deployment of 28GHz and 39GHz spectrum bands bode well for its 5G strategy
Furthermore the company s rival Verizon Communications Inc NYSE VZ is also planning to implement virtualized RAN technologies to increase the efficiency of its wireless network design and save money
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VZ | New York court approves Verizon settlement over merger tax objections | By Jonathan Stempel NEW YORK Reuters A New York state appeals court on Thursday said its door remains open for settlements of merger litigation where shareholders receive no money approving an accord tied to Verizon Communications Inc s N VZ 130 billion buyout of Vodafone Group Plc s L VOD stake in their Verizon Wireless venture The Appellate Division First Department in Manhattan said a lower court judge erred in rejecting a class action settlement requiring Verizon to disclose more information to shareholders who thought it overpaid and get a fairness opinion if it sold some of the venture s assets It also entitled the shareholders lawyers to up to 2 million for fees and expenses Disclosure only settlements have lost favor in recent years with critics saying they provide little benefit to shareholders and companies while forcing companies to pay fees of shareholders lawyers in a so called merger tax Judges in Delaware courts routinely approved such settlements for many years but have in recent decisions made clear those days are over causing lawyers to file dozens of merger related lawsuits in other courts instead The Verizon settlement drew objections from two shareholders and was rejected in December 2014 by New York State Supreme Court Justice Melvin Schweitzer He said the accord failed to materially boost shareholder knowledge about the merger which had closed in February 2014 and could impede the New York based phone company s ability to sell assets But in Thursday s decision a four judge appellate division panel said the added disclosures provided at least some benefit to shareholders while the fairness opinion requirement could help insure good prices for asset sales The panel also tightened its nearly 27 year old test for approving such settlements adding requirements that they be in shareholders and companies best interests It said the Verizon settlement achieved both Given the changing circumstances and concerns surrounding nonmonetary settlements of class actions the Verizon case offered an opportunity to address present day concerns Justice Marcy Kahn wrote The appellate division returned the case to the lower court to determine legal fees We are pleased Juan Monteverde a lawyer for the plaintiffs said in an email Litigation that provides enhanced corporate disclosures and corporate governance will continue to play a vital role in protecting public shareholders A lawyer for one of the objecting shareholders did not immediately respond to requests for comment The other objector Gerald Walpin a former inspector general under President George W Bush died last year
The case is Gordon et al v Verizon Communications Inc et al New York State Supreme Court Appellate Division 1st Department No 653084 2013 |
VZ | FCC closes sponsored data inquiries | WASHINGTON Reuters The U S Federal Communications Commission said on Friday it was closing inquiries into sponsored data programs and TV services offered by AT T Inc NYSE T Verizon Communications Inc N VZ Comcast Corp O CMCSA T Mobile USA Inc O TMUS undertaken during the Obama administration without taking any action Under Democratic control the FCC had sent letters raising concerns about whether some data practices by AT T and Verizon violated net neutrality rules It had also sent a letter to Comcast about its Stream TV service in 2015 and a letter to T Mobile USA asking about its Binge On service In new letters to the companies the FCC said it was closing the inquiries |
VZ | FCC spectrum auction bidding ends at 19 6 billion | By David Shepardson WASHINGTON Reuters The U S Federal Communications Commission said Friday that bidding in the wireless spectrum auction has ended at 19 6 billion significantly less than many analysts had initially forecast The so called broadcast incentive spectrum auction is one of the commission s most complex and ambitious to date and should be complete by April The FCC said last year that 62 bidders made upfront payments to take part including AT T Inc NYSE T Verizon Communications Inc NYSE VZ Dish Network Corp T Mobile US Inc and Comcast Corp NASDAQ CMCSA Of the nearly 20 billion raised more than 6 billion will go to reduce the U S deficit more than 10 billion will go to broadcasters that chose to relinquish spectrum rights and up to 1 75 billion for other broadcasters that incur costs in changing channels The final price for 84 megahertz of spectrum could rise above 20 billion as buyers may hike final bids for specific frequency blocks before the sale is complete In June the FCC said sellers had initially sought 86 4 billion for 126 megahertz of television airwaves taken from broadcasters to be sold for wireless use Many analysts had expected broadcasters to earn substantially more in the auction with some forecasting in 2016 30 billion in proceeds Twentieth First Century Fox Inc s Fox Television unit said this week it would receive about 350 million in proceeds from spectrum sales Tribune Media Co said it expects 190 million in proceeds from the auction Gray Television Inc said it expects to receive 90 8 million and Sinclair Broadcast Group Inc expects to receive 313 million Others did not participate E W Scripps Co said Friday it had opted not to take part because it thought prices were too low FCC Chairman Ajit Pai said the closing of bidding is a major milestone adding the spectrum will boost wireless service These low band airwaves will improve wireless coverage across the country and will play a particularly important role in deploying mobile broadband services in rural areas Pai said The spectrum will transition over 39 months Some stations will transition to a new band and a new channel while others will move off air Those going off the air must give at least 30 days notice Many public TV stations also took part in the auction FCC Commissioner Michael O Rielly raised concerns about the auction He said it was not a failed auction but said significant review is necessary to understand how the FCC rules and auction design impacted the results |
VZ | New FCC chair closely guards his strategy to restructure net neutrality | By David Shepardson WASHINGTON Reuters The new chairman of the U S Federal Communications Commission under President Donald Trump is keeping under wraps his strategy to revise or reverse the Obama administration s net neutrality rules but emphasized he is committed to ensuring an open internet Ajit Pai 44 a Republican lawyer who has served as a FCC commissioner since 2012 strongly opposed former Democratic President Barack Obama administration s 2015 net neutrality rules that reclassified broadband providers and treated them like a public utility I believe as I think most Americans do in a free and open internet and the only question is what regulatory framework best secures that Pai said in an interview in his FCC office where several storage boxes remain to be unpacked Before the imposition of these Depression era rules we had for 20 years a bipartisan consensus on a regulatory model In December Pai vowed to take a weedwacker to unneeded rules and has not backed away from his prior criticism of net neutrality when he again said net neutrality s days are numbered nL1N1E21DU The net neutrality rules bar internet access providers from slowing consumer access to web content A federal appeals court upheld the rules last year Internet providers fear net neutrality rules make it harder to manage internet traffic and make investment in additional capacity less likely while websites worry that without the rules they might lose access to customers Unlike Trump Pai cannot simply issue an order doing away with the net neutrality rules but must go through an administrative process Pai is keeping his cards close to the vest only saying he will mount a careful look at the regulatory framework Last month then FCC chairman Tom Wheeler said reversing the net neutrality rules is not a slam dunk and will face the high hurdle of a fact based showing that so much has changed in just two short years that a reversal is justified Pai faces opposition on Capitol Hill and from many on social media to reversing net neutrality with Democrats urging him not to favor the big broadband barons as one called them There is no problem that needs to be fixed said Senator Edward Markey a Massachusetts Democrat Net neutrality rules ensure those with the best ideas not simply the best funded ideas have the opportunity to share their content with the world Pai said in 2015 that the FCC had adopted the sweeping new net neutrality rules at Obama s behest and would result in higher broadband prices slower speeds less broadband deployment less innovation and fewer options for American consumers Pai s goal is a modern flexible framework that gives everybody a level playing field Wheeler last month urged the next FCC not to undo something that is demonstrably working and says broadband investment has remained high Earlier this week a key Republican on telecommunications policy Representative Marsha Blackburn said Congress will let the FCC make the first move on net neutrality Last Friday Pai sent letters to Verizon Communications Inc NYSE VZ and AT T Inc NYSE T to notify them that the FCC was closing investigations into sponsored data or zero rating programs in which mobile phone companies give customers free data for using certain video services FCC had previously raised concerns about their data policies My position is the government should not be in the position of prohibiting companies in a competitive marketplace from offering free data Pai said
Pai has taken steps to make the FCC more transparent including a pilot program to circulate proposals before they voted on A lot of involves divestment of power from the chairman s office he said |
VZ | Verizon reintroduces unlimited data plan as competition rises | NEW YORK Reuters Verizon Communications Inc NYSE VZ will introduce an unlimited data plan on Monday its first in more than five years in its latest effort to lure customers as competition rises between network carriers The introductory plan announced on Sunday will give unlimited data to customers on smartphones and tablets on its 4G LTE network It comes days after competitor Sprint Corp introduced a new unlimited data plan of its own The unlimited option appears to be a change in direction for Verizon after one of the company s top executives said last month it was not looking at unlimited products when asked by analysts whether Verizon needed to be more aggressive in the market We constantly look at what s out there Unlimited is one of the things that some of our competition has at this point in time That s not something we feel the need to do Matthew Ellis Verizon s chief financial officer told analysts during an earnings call on Jan 24 But as I say we continually monitor the market and we will see where we head in the future he added
Verizon s unlimited plan is 80 per month for unlimited data talk and text for the first line and an additional 45 per line up to four lines The company stopped offering unlimited data plans for most customers in 2011 |
CSCO | Cisco Rises 3 | Investing com Cisco NASDAQ CSCO rose by 3 06 to trade at 45 42 by 11 23 15 23 GMT on Thursday on the NASDAQ exchange
The volume of Cisco shares traded since the start of the session was 9 79M Cisco has traded in a range of 44 21 to 45 46 on the day
The stock has traded at 46 4900 at its highest and 43 9800 at its lowest during the past seven days |
CSCO | Cisco Falls 3 | Investing com Cisco NASDAQ CSCO fell by 3 05 to trade at 44 09 by 10 05 14 05 GMT on Friday on the NASDAQ exchange
The volume of Cisco shares traded since the start of the session was 4 25M Cisco has traded in a range of 44 07 to 44 74 on the day
The stock has traded at 46 4900 at its highest and 43 9600 at its lowest during the past seven days |
CSCO | Cisco Rises 3 | Investing com Cisco NASDAQ CSCO rose by 3 03 to trade at 45 93 by 12 57 16 57 GMT on Wednesday on the NASDAQ exchange
The volume of Cisco shares traded since the start of the session was 10 69M Cisco has traded in a range of 44 89 to 45 94 on the day
The stock has traded at 45 9400 at its highest and 42 9400 at its lowest during the past seven days |
CSCO | Cisco Rises 3 | Investing com Cisco NASDAQ CSCO rose by 3 05 to trade at 47 92 by 15 58 20 58 GMT on Wednesday on the NASDAQ exchange
The volume of Cisco shares traded since the start of the session was 16 24M Cisco has traded in a range of 46 75 to 47 93 on the day
The stock has traded at 47 9200 at its highest and 43 7500 at its lowest during the past seven days |
VZ | Verizon Q4 adjusted EPS 0 86 vs estimate 0 89 | Investing com NYSE Verizon s fourth quarter earnings missed analyst forecasts with sales a tad off The U S telecoms firm Tuesday reported adjusted Q4 EPS of 0 86 vs estimate of 0 89 and 0 89 a year earlier Verizon said the adjusted figure excluded mark to market net gains from employee benefit funds Revenues fell 5 6 to 32 34 bn vs forecast of 32 36 bn NASDAQ Yahoo said Monday it sees sale of its core internet business to Verizon completed in Q2 |
VZ | Wall St firmer as earnings digested | Investing com U S stocks firmed early Tuesday as a heavy flow of earnings was digested The blue chip DJI was up 0 19 at 10 30 ET The S P 500 added 0 21 The tech heavy Nasdaq composite gained 0 27 The dollar recovered from six week lows as oil firmedExisting home sales fell more than expected The manufacturing PMI beat estimates President Trump urged U S automaker CEOs to boost domestic production NYSE Verizon was down 4 42 at 50 09 as earnings missed estimates |
VZ | Verizon earnings subscriber additions fall short of estimates | By Anjali Athavaley and Aishwarya Venugopal Reuters Verizon Communications Inc s N VZ quarterly profit missed estimates and the No 1 U S wireless carrier added fewer subscribers than anticipated in the fourth quarter as it struggles to fend off rivals in a maturing wireless market Shares of Verizon which is in the process of buying Yahoo Inc s O YHOO core assets as a way to diversify were down 4 4 percent at 50 09 on Tuesday Verizon added 591 000 retail postpaid subscribers those who pay their bills on a monthly basis in the quarter overall fewer than the 726 000 analysts had expected according to market research firm FactSet StreetAccount Chief Financial Officer Matt Ellis said in an interview that the company s 167 000 phone subscriber additions were strong The biggest area where people were probably off was tablets he said We didn t run as many tablet promotions this quarter But analysts said the results illustrated how Verizon is facing intensifying competition from wireless rivals such as T Mobile U S Inc O TMUS and Sprint Corp N S Customer defections among Verizon s wireless retail customers who pay bills on a monthly basis increased to 1 10 percent of total wireless subscribers compared with the average analyst estimate of 1 05 percent according to FactSet The soft results in wireless serve as a stark reminder that despite all of the understandable enthusiasm around possible regulatory reform tax reductions and possible consolidation the wireless industry is still a relatively inhospitable place wrote Craig Moffett analyst at MoffettNathanson Verizon said in July that it would buy Yahoo s core internet properties in a push for new sources of revenue but the deal has been cast into doubt by data breaches disclosed by Yahoo last year Yahoo said on Monday that its deal with Verizon was expected to wrap up in the second quarter instead of the first quarter Yahoo shares were up 3 percent at 43 63 Ellis said the delay was unsurprising and that Verizon was still working to assess the financial impact of the breaches Net income attributable to Verizon fell to 4 5 billion or 1 10 per share in the three months ended Dec 31 from 5 39 billion or 1 32 per share a year earlier Excluding items the New York based company earned 86 cents per share missing the average estimate of 89 cents according to Thomson Reuters I B E S Verizon s operating revenue fell to 32 34 billion from 34 25 billion in the same period of 2015 Analysts had expected revenue of 32 08 billion |
CSCO | Cisco Falls 3 | Investing com Cisco NASDAQ CSCO fell by 3 to trade at 46 03 by 15 37 19 37 GMT on Wednesday on the NASDAQ exchange
The volume of Cisco shares traded since the start of the session was 19 50M Cisco has traded in a range of 46 03 to 47 51 on the day
The stock has traded at 49 47 at its highest and 46 03 at its lowest during the past seven days |
CSCO | India to raise import tariffs on electronic and communication items | By Sankalp Phartiyal Nidhi Verma and Suvashree Choudhury NEW DELHI MUMBAI Reuters India said on Thursday it will raise import tariffs on several electronic items and communication devices in another move to rein in imports and bolster a falling rupee The tariff hike the second such move by India in a two week span was announced late on Thursday by New Delhi as it attempts to raise import barriers to curtail the import of goods it deems as non essential items The latest set of increased tariffs could ratchet up trade tensions with the United States and China among other countries and hurt the likes of network equipment makers such as Cisco Systems Inc O CSCO Huawei Technologies Co ZTE HK 0763 Corp SZ 000063 Ericsson ST ERICb Nokia HE NOKIA and Samsung Electronics KS 005930 The gambit is part of a plan to contain a slide in the rupee which has weakened more than 14 percent against the U S dollar this year hit by an rout in emerging markets and other domestic factors such as a widening current account deficit It was not immediately clear how much of a tariff increase is being levied on each specific item but the Indian government listed several items that could be impacted including wearables like smart watches Voice over Internet Protocol equipment and phones and ethernet switches among other items The plan which becomes effective on Friday will potentially also hurt Indian telecoms carriers such as Reliance Jio Infocomm NS RELI Bharti Airtel NS BRTI and Idea said Neil Shah of tech research firm Counterpoint This will slow down the roll out of high speed broadband which uses optical fiber and LTE networks Shah told Reuters adding however that it could help local telecom equipment makers like Tata Teleservices that manufacture some of this equipment locally The move is the Prime Minister Narendra Modi government s latest tilt toward protectionism as it promotes its Make in India program India announced higher import tax on electronics products such as mobile phones and television sets in December and then on 40 more items in the budget in February These included goods as varied as sunglasses juices and auto components
Last month it raised import tariffs on 19 non essential items including air conditioners refrigerators footwear speakers luggage and aviation turbine fuel among other items |
CSCO | Cisco Falls 3 | Investing com Cisco NASDAQ CSCO fell by 3 to trade at 44 20 by 15 49 19 49 GMT on Thursday on the NASDAQ exchange
The volume of Cisco shares traded since the start of the session was 29 24M Cisco has traded in a range of 43 93 to 45 60 on the day
The stock has traded at 49 47 at its highest and 44 00 at its lowest during the past seven days |
CSCO | Cisco Rises 3 | Investing com Cisco NASDAQ CSCO rose by 3 to trade at 45 45 by 15 08 19 08 GMT on Friday on the NASDAQ exchange
The volume of Cisco shares traded since the start of the session was 23 95M Cisco has traded in a range of 44 46 to 45 45 on the day
The stock has traded at 48 85 at its highest and 43 92 at its lowest during the past seven days |
VZ | Comcast CMCSA Q2 Earnings And Revenues Surpass Estimates | Comcast Corp NYSE S reported strong financial results in the second quarter of 2017 wherein both the top and the bottom line outpaced the Zacks Consensus Estimate GAAP net income came in at 2 513 million or 52 cents per share compared with 2 028 million or 41 cents in the prior year quarter Quarterly earnings per share of 52 cents outpaced the Zacks Consensus Estimate of 48 cents Total revenue was 21 165 million up 9 8 year over year and ahead of the Zacks Consensus Estimate of 20 816 million Operating income came in at 4 558 million up 12 1 year over year Operating margin rose to 21 5 compared with 21 1 in the year ago quarter Adjusted EBITDA was 7 099 million up 10 year over year During the second quarter Comcast repurchased 35 2 million common shares for 1 400 million and paid dividends of 747 million In the second quarter of 2017 Comcast generated 5 158 million of cash from operations compared with 4 395 million in the year ago quarter Free cash flow in the reported quarter was 2 219 million compared with 1 420 million in the prior year quarter Cash and cash equivalents were 2 693 million down from 3 301 million at the end of 2016 Total debt at second quarter end was 63 568 million compared with 61 046 million at the end of 2016 The debt to capitalization ratio at the end of the reported quarter was 0 51 compared with 0 50 at the end of 2016 Cable Communications SegmentQuarterly total revenue of 13 122 million reflected a 3 9 rise year over year Adjusted EBITDA was 5 320 million advancing 5 4 year over year Video revenues were 5 797 million up 3 9 from the prior year quarter High Speed Internet revenues totaled 3 679 million up 9 2 year over year Voice revenues were 856 million declining 4 1 year over year Advertising revenues totaled 574 million down 2 1 from the year ago quarter Business Services revenues were 1 531 million rising 12 6 year over year Other revenues were 685 million up 5 from the prior year quarter As of Jun 30 2017 Comcast had 25 306 million up 5 5 year over year high speed internet customers 11 659 million up 0 2 year over year voice customers and 22 516 million up 0 5 year over year video customers The company added a net of 175 000 high speed internet customers but lost 34 000 video customers and 22 000 voice customers in the reported quarter Comcast also gained 8 000 double play subscribers and 70 000 single play subscribers NBC Universal SegmentQuarterly total revenue of 8 331 million displayed a 17 3 year over year increase Adjusted EBITDA was 2 071 million exhibiting a rise of 22 6 year over year Cable Networks revenues were 2 696 million up 5 1 year over year Broadcast TV revenues came in at 2 241 million rising 5 3 year over year Filmed Entertainment revenues were 2 155 million up a whopping 59 6 from the year ago quarter Theme Parks revenues were 1 314 million up 15 6 year over year Comcast Corporation NASDAQ CMCSA Price Consensus and EPS Surprise
Latest DevelopmentsComcast has launched wireless service under the Xfinity Mobile brand However stiff pricing competition in the industry is a genuine concern As we have seen the four major wireless telecommunications companies Verizon Communications Inc NYSE VZ AT T Inc NYSE T Sprint Corp NYSE S and T Mobile US Inc NYSE T have joined the unlimited postpaid data plan war in order to stand out in the crowd In this scenario the entry of non wireless giants like Comcast will further intensify the competition Comcast currently carries a Zacks Rank 3 Hold You can see More Stock News Tech Opportunity Worth 386 Billion in 2017From driverless cars to artificial intelligence we ve seen an unsurpassed growth of high tech products in recent months Yesterday s science fiction is becoming today s reality Despite all the innovation there is a single component no tech company can survive without Demand for this critical device will reach 387 billion this year alone and it s likely to grow even faster in the future Zacks has released a brand new Special Report to help you take advantage of this exciting investment opportunity Most importantly it reveals 4 stocks with massive profit potential |
VZ | Verizon VZ Q2 Earnings In Line Revenues Beat Estimates | Verizon Communications Inc NYSE VZ reported mixed financial numbers in the second quarter of 2017 While the top line outpaced the Zacks Consensus Estimate the bottom line met the mark
Quarterly GAAP net income was 4 478 million or 1 07 per share compared with 831 million or 17 cents per share in the year ago quarter Adjusted earnings per share came in at 96 cents in the reported quarter in line with the Zacks Consensus Estimate
Total revenue increased 0 1 year over year to 30 548 million beating the Zacks Consensus Estimate of 29 907 million
Total operating expenses in the second quarter of 2017 were 22 316 million down 14 1 year over year Operating income came in at 8 232 million compared with 4 554 million in the year ago quarter Adjusted EBITDA was 12 399 million compared with 8 536 million in the prior year quarter
Cash Flow Liquidity
In the first half of 2017 Verizon generated 9 918 million of cash from operating activities compared with 12 908 in the year ago period Free cash flow in the reported period was 2 907 million compared with 5 635 million in the prior year quarter At the end of the second quarter of 2017 Verizon had 4 583 million in cash and 117 543 million in long term debts compared with 2 880 million and 108 078 million respectively at the end of 2016 The debt to capitalization ratio was 0 81 at the end of the second quarter of 2017 flat with the 2016 end figure
Wireless Segment
Total revenue was 21 282 million down 1 9 year over year Service revenues dropped 6 7 to 15 622 million Equipment revenues increased 16 to 4 298 million Other revenues totaled 1 362 million up 8 2
Operating expenses increased 1 4 to 13 872 million Operating income declined 7 6 to 7 410 million Quarterly operating income margin was 34 8 compared with 36 9 in the year ago quarter Segment EBITDA decreased 5 3 to 9 757 million EBITDA margin was 45 8 compared with 47 5 in the prior year quarter
As of Jun 30 2017 Verizon had 112 536 million retail subscribers up 1 2 year over year Of the total retail postpaid subscriber count was 109 088 million up 1 2 Meanwhile retail prepaid user count was 5 448 million up 1 4 In the reported quarter the company gained 0 614 million postpaid customers and 0 019 million prepaid customers
Quarterly retail postpaid churn rate was 0 94 flat year over year Total retail churn rate was 1 18 compared with 1 19 in the year ago quarter Of the total activated phones smartphones accounted for 95 2 compared with 92 1 in the prior year quarter Retail postpaid ARPA average revenue per account was 134 89 compared with 145 09 in the year ago quarter
Wireline Segment
Total revenue at the segment was 7 802 million up 1 2 year over year Consumer retail revenues were up 0 6 to 3 184 million Enterprise Solutions revenues contracted 0 4 to 2 388 million Partner Solutions revenues dropped 0 4 to 1 236 million Business Markets revenues grossed 921 million up 9 Other revenues decreased 13 1 to 73 million
Operating expenses decreased 6 1 to 7 734 million Quarterly operating income was 68 million against an operating loss of 524 million in the year ago quarter Quarterly operating margin came in at 0 9 as opposed to an operating loss of 6 8 in the year ago quarter Segment EBITDA was up a whopping 58 5 to 1 620 million EBITDA margin was 20 8 compared with 13 3 in the year ago quarter
As of Jun 30 2017 FiOS video subscriber base was 4 666 million up 0 6 year over year FiOS Internet subscriber count was 5 737 million up 4 4 and FiOS digital voice residence connections totaled 3 909 million up 0 8 During the quarter Verizon lost 15 000 FiOS video subscribers while gaining 22 000 FiOS digital voice residential connections and 49 000 FiOS internet subscribers
High speed internet connection dropped 17 6 year over year to 1 251 million while total broadband connection number was pegged at 6 988 million down 0 4 Primary residence switched access connections decreased 15 4 to 2 962 million and Primary residence connections fell 6 9 to 6 871 million Total retail residence voice connections declined 7 3 to 7 079 million and total voice connections contracted 7 8 to 13 352 million Verizon Communications Inc Price Consensus and EPS Surprise
Recent Developments
Verizon currently carries a Zacks Rank 3 Hold You can see The company is facing intense competitive pressure from rivals like AT T Inc NYSE T T Mobile US Inc NYSE T and Sprint Corp NYSE S In order to counter this the company has been focusing on generating revenues from video streaming services and digital advertising Keeping with this strategy it acquired AOL Millennium Media and internet based assets of Yahoo NASDAQ AABA
More Stock News Tech Opportunity Worth 386 Billion in 2017
From driverless cars to artificial intelligence we ve seen an unsurpassed growth of high tech products in recent months Yesterday s science fiction is becoming today s reality Despite all the innovation there is a single component no tech company can survive without Demand for this critical device will reach 387 billion this year alone and it s likely to grow even faster in the future
Zacks has released a brand new Special Report to help you take advantage of this exciting investment opportunity Most importantly it reveals 4 stocks with massive profit potential |
VZ | Straight Path settles with FCC over licenses | By Liana B Baker
SAN FRANCISCO Reuters Straight Path Communications Inc A STRP a holder of licenses to wireless spectrum said it has settled with the U S Federal Communications Commission resolving an investigation into the company
As part of the settlement Straight Path will pay 15 million to the FCC and give the regulator a 20 percent cut of any sale of its spectrum licenses the company said in a statement on Thursday
The FCC had made inquiries into Straight Path s former parent company IDT Corp N IDT and its spectrum licenses following allegations of fraud that were made against the company by an anonymous shortseller
Straight Path s main asset is its licenses for airwaves that could be used by wireless operators in emerging 5G technology Wireless providers such as AT T Inc N T and Verizon Communications Inc N VZ are hungry for airwaves to help them expand their networks
In July 2016 the FCC made a rule change that allowed for the 28GHz and 39GHz bands a major part of Straight Path s spectrum holdings to be used in mobile communications
Straight Path is also hiring investment bank Evercore Partners Inc N EVR to help the company explore strategic alternatives
As part of the consent decree if Straight Path does not announce the sale of its spectrum licenses in the next 12 months it will have to pay the FCC 85 million or return its licenses
We are pleased that we were able to achieve a comprehensive settlement with the FCC which allows us to move forward Chief Executive Davidi Jonas said in the statement
The settlement may put an end to some of the uncertainty surrounding the company whose stock seesawed in late 2015 from 50 to less than 8 Besides the anonymous shortseller it had also been targeted by New York based Kerrisdale a 400 million hedge fund that shorts stocks publicly
Shares in Straight Path closed 5 6 percent lower at 31 41 per share on Wednesday |
VZ | SEC probing Yahoo over previously disclosed cyber breach filing | By Suzanne Barlyn Reuters The U S Securities and Exchange Commission is investigating a previously disclosed data breach at Yahoo NASDAQ YHOO Inc the company said in a filing Yahoo said in a November 2016 quarterly filing that it was cooperating with federal state and foreign agencies including the SEC that were seeking information and documents about a security incident and related matters The SEC is investigating whether two massive data breaches at Yahoo should have been reported sooner to investors the Wall Street Journal reported on Sunday citing people familiar with the matter An SEC spokesman declined to comment A Yahoo spokesman directed Reuters to the company s November filing Yahoo has faced pointed questions about exactly when it knew about a 2014 cyber attack it announced in September that exposed the email credentials of half a billion accounts In December Yahoo said it had uncovered yet another massive cyber attack saying data from more than 1 billion user accounts was compromised in August 2013 The SEC issued requests for documents in December as it probes whether the technology company s disclosures about the cyber attacks complied with civil securities laws the people said according to the Journal Securities industry rules require companies to disclose cyber breaches to investors Although the SEC has long standing guidance on when publicly traded companies should report hacking incidents companies that have experienced known breaches often omit those details in regulatory filings according to a 2012 Reuters investigation Democratic U S Senator Mark Warner asked the SEC in September to investigate whether Yahoo and its senior executives fulfilled obligations to inform investors and the public about the 2014 hacking attack The disclosures from Yahoo about both breaches came after the company agreed to sell its main business to Verizon Communications Inc NYSE VZ in July triggering questions about whether the deal would still be viable and if so at what price
Other agencies looking into the data breach include the Federal Trade Commission the U S Attorney s Office in Manhattan and a number of State Attorneys General Yahoo said in the November filing |
VZ | Trump taps net neutrality opponent Ajit Pai to head FCC | By David Shepardson WASHINGTON Reuters President Donald Trump on Monday tapped Republican Commissioner Ajit Pai to head the U S Federal Communications Commission which is expected to roll back many of the Obama Administration s telecommunications and internet policies Pai a former Justice Department FCC and Capitol Hill staffer in December predicted landmark net neutrality rules adopted in 2015 would not last The son of Indian immigrants who grew up in Kansas Pai said the commission should take a weed whacker to unneeded rules and was harshly critical of many FCC regulations imposed during the Obama administration During the Trump administration we will shift from playing defense at the FCC to going on offense he said in December We need to fire up the weed whacker and remove those rules that are holding back investment innovation and job creation Pai will also have a key role in deciding whether to approve or reject or impose conditions on mergers involving cable and telephone companies In May Pai opposed FCC conditions imposed on Charter Communication s acquisition of Time Warner Cable Last week then FCC chairman Tom Wheeler urged Republicans against dismantling internet access protections that bar service providers from slowing consumer access to web content Internet providers fear net neutrality rules make it harder to manage internet traffic and make investment in additional capacity less likely The Republican controlled Congress is also considering rewriting the net neutrality rules Pai said in 2015 that consumers would be worse under net neutrality and should expect their bills to go up and they should expect that broadband will be slower going forward Senator Maria Cantwell a Washington state Democrat criticized Pai in a letter to President Donald Trump Monday as not a supporter of the FCC s strong rules to protect an open internet putting at risk our robust net neutrality rules and the three million internet economy jobs it supports Under Wheeler the FCC and major telecom and cable companies have been at odds over a number of big issues in recent years including tougher broadband privacy rules and a proposal to allow pay TV consumers to ditch set top boxes Comcast Corp AT T Inc NYSE T Verizon Communications Inc NYSE VZ Frontier Communications Corp NASDAQ FTR T Mobile US Inc and Charter all praised Pai s appointment in separate statements Chairman Pai will work with his fellow commissioners to quickly and decisively put back in place the commonsense regulatory framework necessary to support the president s agenda AT T said However advocacy group Free Press President Craig Aaron said Pai has been on the wrong side of just about every major issue that has come before the FCC during his tenure He s never met a mega merger he didn t like or a public safeguard he didn t try to undermine U S Telecom an industry trade group said in a statement it shares Pai s vision for a future based on a bold but pragmatic strategy to erase the many regulatory barriers impeding the expansion of our nation s communications infrastructure and the jobs and economic opportunity that depend on it
Pai does not need Senate confirmation as chairman but his current term expires at year end and he will need to be reconfirmed to continue |
CSCO | Consolidated Comms expands ProConnect UC offering | Consolidated Communications CNSL 0 5 has significantly expanded its unified communications solution ProConnect aimed at enterprise customers ProConnect now offers tools including videoconferencing web meetings desktop sharing mobile client instant messaging presence call handling and more in its any device UC approach The company is working with BroadSoft NASDAQ CSCO on the platform Consolidated will hold an Oct 25 webinar about its UC offerings Now read |
VZ | Will T Mobile US TMUS Disappoint Investors In Q2 Earnings | T Mobile US Inc NYSE T the third largest national wireless operator is slated to report second quarter 2017 results after the market closes on Jul 19 Last quarter T Mobile US delivered a positive earnings surprise of 31 43 The company s earnings surpassed the Zacks Consensus Estimate in all of the previous four quarters with an average beat of 30 74 Over the past three months share price of T Mobile US have declined 5 22 compared with the Zacks categorized industry s fall of 9 24 Lets see how things are shaping up for this announcement Factors at PlayT Mobile US operates in a highly competitive and saturated wireless market where success depends on technical superiority quality of services and scalability In all these areas the company lags its peers Verizon Communications Inc NYSE VZ and AT T Inc NYSE T Also Sprint is extensively restructuring its business model and is striving to attain the position held by T Mobile US in the market Such intense competition could limit the company s ability to attract and retain customers which will affect its results Moreover the company faces increased scrutiny in its working conditions lawsuits and fines by regulatory authorities and institutional investors In order to lure customers from competitors T Mobile US continues to launch several low priced service plans for individual consumers as well as small business entities We are concerned regarding the marketing costs of the low priced promotional plans which lead to high cash burn and heavy losses for the company Despite such negatives we believe T Mobile US network expansion plans consisting of 5G trials with Ericsson BS ERICAs and Nokia HE NOKIA 4G LTE network improvement and its expansion deployment of LTE U technology and unlimited T Mobile One plan might have driven its substantial consumer growth in the last reported first quarter 2017 As of Mar 31 2017 the total customer base of T Mobile US was 72 597 million up 10 8 year over year Branded postpaid phone customers totaled 32 095 million up 6 2 Branded postpaid mobile broadband customer count was 3 246 million surging 29 6 Branded prepaid customer count was 20 199 million up 9 6 The company s management raised its outlook for 2017 on the back of huge user gain We look forward to see if the company succeeds in gaining customers in the to be reported quarter The company s decision to roll out 600 MHz wireless spectrum is a strategic move for its growth prospects Offering the latest version of iPhone7 which requires strong wireless bandwidth could be a boon for the company We are impressed with the company s efforts to reward its stockholders with a quarterly dividend on its 5 50 Mandatory Convertible Preferred Stock Preferred Stock payable on Jun 15 2017 to holders of record as of Jun 1 2017 Earnings WhispersOur proven model does not conclusively show that T Mobile US is likely to beat on earnings this quarter This is because a stock needs to have a positive and a Zacks Rank 1 Strong Buy 2 Buy or 3 Hold for this to happen That is not the case here as you will see below Zacks ESP T Mobile US has an Earnings ESP of 19 44 This is because the Most Accurate estimate stands at 29 cents while the Zacks Consensus Estimate is pegged at 36 cents You can uncover the best stocks to buy or sell before they re reported with our Zacks Rank T Mobile US has a Zacks Rank 4 Sell We caution against stocks with a Zacks Rank 4 or 5 Strong Sell going into the earnings announcement especially when the company is seeing negative estimate revisions T Mobile US Inc Price and EPS Surprise Key PickMSCI Inc NYSE MSCI from the Zacks categorized broader sector which houses T Mobile US has the right combination of elements to post an earnings beat insecond quarter 2017 results on Aug 3 2017 MSCI has an Earnings ESP of 2 22 and a Zacks Rank 1 You can see Its earnings surpassed the Zacks Consensus Estimate in all of the previous four quarters with an average beat of 6 32 Today s Stocks from Zacks Hottest Strategies It s hard to believe even for us at Zacks But while the market gained 18 8 from 2016 Q1 2017 our top stock picking screens have returned 157 0 128 0 97 8 94 7 and 90 2 respectively And this outperformance has not just been a recent phenomenon Over the years it has been remarkably consistent From 2000 Q1 2017 the composite yearly average gain for these strategies has beaten the market more than 11X over Maybe even more remarkable is the fact that we re willing to share their latest stocks with you without cost or obligation |
VZ | What To Expect From Crown Castle CCI This Earnings Season | Crown Castle International Corp NYSE CCI a leading wireless communication tower operator in the U S is scheduled to report second quarter 2017 financial numbers on Jul 19 after market closes Last quarter the company posted a positive earnings surprise of 6 90 Moreover the company s earnings surpassed the Zacks Consensus Estimate in three of the last four quarters with an average beat of 3 10 The price performance of Crown Castle was also been impressive over the last six months The stock returned 12 8 outshining the Zacks categorized industry s gain of 5 15 over the same time frame
Let s see how things are shaping up for this announcement Factors to Consider Crown Castle s continuous operation in a consolidated wireless industry has reduced demand for cell tower deployment This is therefore expected to have an adverse effect on the company s revenues The leading four Crown Castle customers Verizon Communications Inc NYSE VZ AT T Inc NYSE T Sprint Corporation S and T Mobile account for the majority of its total revenue Hence loss of any of these customers or consolidation will significantly impact the wireless tower operator s top line Evolution of new technologies may reduce the demand for site leases In addition frequent changes in demand for network services and infrastructure support tend to increase volatility in revenues Moreover popularity of the Voice over WiFi network is increasing in metro cities With both mobile handset manufacturers and wireless carriers rapidly adopting the technology the company s top line may come under pressure Carriers like Sprint are looking for an alternative microwave technology dubbed as the Next Generation Network to replace the more traditional backhaul system Also owing to its expansive international presence Crown Castle is highly exposed to currency exchange rate risks However the company s extensive tower portfolio increased demand for infrastructure healthy leasing activity continual buyout of towers and growing demand for mobile broadband act as major positives The deployment of 5G network should drive growth of its tower and small cell assets as the wireless carriers look to expand and enhance their networks Earnings WhispersOur proven model does not conclusively show that Crown Castle is likely to beat on earnings this quarter This is because a stock needs to have both a positive and a Zacks Rank 1 Strong Buy 2 Buy or 3 Hold for this to happen That is not the case here as you will see below Zacks ESP CrownCastle has an Earnings ESP of 1 74 This is because the Most Accurate estimate stands at 1 13 lower than the Zacks Consensus Estimate of 1 15 You can uncover the best stocks to buy or sell before they re reported with our Zacks Rank Crown Castlehas a Zacks Rank 2 which increases the predictive power of ESP However the company s 1 74 ESP makes surprise prediction difficult We caution against stocks with a Zacks Rank 4 or 5 Sell rated going into the earnings announcement especially when the company is seeing negative estimate revisions Crown Castle International Corporation Price and EPS Surprise Another Stock to ConsiderLiberty Property Trust NYSE T from the Zacks categorized broader sector has the right combination of elements to post an earnings beat when it expectedly reports second quarter 2017 results on Jul 25 The company has an Earnings ESP of 1 61 and a Zacks Rank 2 You can see Liberty Property Trust s earnings surpassed the Zacks Consensus Estimate in two of the previous four quarters with an average beat of 2 05 5 Trades Could Profit Big League from Trump PoliciesIf the stocks above spark your interest wait until you look into companies primed to make substantial gains from Washington s changing course Today Zacks reveals 5 tickers that could benefit from new trends like streamlined drug approvals tariffs lower taxes higher interest rates and spending surges in defense and infrastructure |
VZ | Is Crown Castle CCI Mulling Over Acquiring Lightowers | As per Reuters leading wireless tower operator and real estate investment trust Crown Castle International Corp NYSE CCI submitted a bid to take over Lightower Fiber Networks for more than 7 billion including debt However neither side has confirmed the report Crown Castle is U S s leading wireless communication tower operator It has approximately 40 000 towers and 29 000 route miles of fiber network that support small cells More than 90 of its quarterly revenues come from wireless service providers like Verizon Communications Inc NYSE VZ AT T Inc NYSE T and T Mobile US Inc NYSE T It has acquired 9 700 wireless towers from AT T and taken over another 7 200 from T Mobile US Management has decided to double its existing small cell network within the next two years According to a report by Guggenheim Equity Research the company will spend around 1 2 billion to deploy 25 000 new small cell nodes over the next 18 24 months At present small cell networks are in high demand from wireless service providers to improve coverage and increase capacity Crown Castle s ongoing efforts in transforming itself from a tower company to a fiber provider focused on small cell opportunity looks impressive In the last few years the company has purchased three fiber operators FPL FiberNet Holdings LLC in Jan 2017 Quanta Fiber called Sunesys in Apr 2015 and 24 7 Mid Atlantic Network in Sep 2014 Recently Crown Castle acquired privately held Wilcon Holdings LLC a premier service provider of dark fiber which will augment the wireless tower operator s small cell backhaul Management is gradually developing small cell networks to supplement macro site tower business With the Wilcon acquisition Crown Castle will attain ownership rights of over 28 000 route miles of fiber Acquisition of Lightower will increase Crown Castle s fiber network and tower count by nearly 80 and 20 respectively Lightower runs over 33 000 route miles of fiber network across 17 states in the Northeast Mid Atlantic and Midwest and operates 7 000 towers and small cells In accordance with the current market scenario Crown Castle is pursuing small cell deployments for its wireless customers The company is making this move to enhance its networks and meet the whooping demand for high speed high capacity wireless services Price Performance of Crown CastleIn the last three months the stock price has gained 0 5 in contrast with the Zacks categorized industry s decline of 0 9 Diversification of business structure toward fiber network will be a long term positive for the company We believe these are primarily responsible for the stock currently holding a Zacks Rank 2 Buy You can see 5 Trades Could Profit Big League from Trump PoliciesIf the stocks above spark your interest wait until you look into companies primed to make substantial gains from Washington s changing course Today Zacks reveals 5 tickers that could benefit from new trends like streamlined drug approvals tariffs lower taxes higher interest rates and spending surges in defense and infrastructure |
VZ | Crown Castle CCI Q2 Earnings Revenues Beat Estimates | Crown Castle International Corp NYSE CCI a leading wireless communication tower operator reported impressive financial results for the second quarter of 2017 The company s top as well as bottom line surpassed the Zacks Consensus Estimate Wireless services are rapidly gaining ground courtesy of additional features and capabilities Buyout of wireless towers also bodes well Much of the infrastructure and upgrades require effective site management of cell towers and equipment Crown Castle efficiently addresses this opportunity since over 90 of its quarterly revenues come from wireless service providers like Verizon Communications Inc NYSE VZ AT T Inc NYSE T and T Mobile US Inc NYSE T The company currently sports a Zacks Rank 1 Strong Buy You can see Net IncomeCrown Castle reported quarterly earnings per share of 1 20 beating the Zacks Consensus Estimate of 1 15 Likewise GAAP net income rose a whopping 49 4 year over year to 112 1 million RevenuesTotal revenue in the second quarter increased 7 9 year over year to 1 038 3 million beating the Zacks Consensus Estimate of 1 036 million Site Rental Segment quarterly revenues were 868 8 million up 8 year over year Network Services Segment quarterly revenues were 169 5 million up 7 4 year over year Operating MetricsQuarterly operating income came in at 258 5 million compared with 231 2 in the year ago quarter Total operating expenses rose to 779 8 million from 731 2 million in the year ago quarter Operating margin in the reported quarter was 24 9 compared with 24 in the year ago quarter Quarterly adjusted EBITDA was approximately 588 5 million representing a year over year increase of 7 1 Cash FlowIn the first half of 2017 Crown Castle generated 934 1 million of cash compared with 918 2 million in the year ago period Free cash flow in the reported period was 370 7 million compared with 525 2 million in the year ago period Balance SheetAt the end of the first half of 2017 Crown Castle had cash and cash equivalents of approximately 199 7 million on its balance sheet compared with 567 6 million at the end of 2016 At second quarter 2017 end debt and other long term obligations totaled approximately 13 841 3 million up from 12 069 4 million at the end of 2016 Crown Castle International Corporation Price Consensus and EPS Surprise
Third Quarter 2017 OutlookFor the third quarter of 2017 Crown Castle expects Site Rental revenues in the range of 888 893 million Site Rental cost of operation is projected in the band of 275 280 million Adjusted EBITDA is anticipated between 600 million and 605 million Interest expense inclusive of amortization is estimated at 142 147 million Meanwhile FFO funds flow from operation is anticipated in the 404 409 million band AFFO adjusted FFO is projected in the 447 452 million range while net income is projected in the range of 90 110 million Full Year 2017 OutlookCrown Castle has raised its outlook for 2017 The company expects Site Rental revenues in the range of 3 504 3 529 million Site Rental cost of operation is projected in the 1 071 1 096 million band Adjusted EBITDA is anticipated between 2 389 million and 2 414 million Interest expense inclusive of amortization is estimated in the 552 582 million range FFO is projected at 1 623 1 653 million AFFO is expected between 1 813 million and 1 838 million Net income is anticipated between 426 million and 476 million Looking for Stocks with Skyrocketing Upside Zacks has just released a Special Report on the booming investment opportunities of legal marijuana Ignited by new referendums and legislation this industry is expected to blast from an already robust 6 7 billion to 20 2 billion in 2021 Early investors stand to make a killing but you have to be ready to act and know just where to look |
VZ | Verizon executive says company unsure about Yahoo deal | Reuters A senior Verizon Communications Inc N VZ executive said on Thursday that the company was unsure about its planned acquisition of Yahoo Inc s O YHOO internet business Yahoo came under renewed scrutiny by federal investigators and lawmakers last month after disclosing the largest known data breach in history prompting Verizon to demand better terms for its planned purchase I can t sit here today and say with confidence one way or another because we still don t know Marni Walden president of product innovation and new businesses at Verizon said at the Citi 2017 Internet Media Telecommunications Conference in Las Vegas Walden added that the merits of the deal still made sense and that there were certain aspects of the investigation that had yet to be completed She did not provide a time frame for the completion of the deal We think it will take weeks at least we don t have a desire to have it drag on forever that s not our intent Walden said However AOL Chief Executive Tim Armstrong told CNBC that he expected the Verizon Yahoo deal would likely go through AOL was acquired by Verizon in 2015 for 4 4 billion
Yahoo s shares were up 3 09 percent at 41 30 while Verizon s shares were relatively unchanged in late afternoon trading |
VZ | Yahoo to be named Altaba Mayer to leave board after Verizon deal | Reuters Yahoo NASDAQ YHOO Inc said Monday that it would rename itself Altaba Inc and Chief Executive Officer Marissa Mayer would step down from the board after the closing of its deal with Verizon Communications Inc NYSE VZ
Yahoo has a deal to sell its core internet business which includes its digital advertising email and media assets to Verizon for 4 83 billion
The terms of that deal could be amended or the transaction may even be called off after Yahoo last year disclosed two separate data breaches one involving some 500 million customer accounts and the second involving over a billion
Verizon executives have said that while they see a strong strategic fit with Yahoo they are still investigating the data breaches
Five other Yahoo directors would also resign after the deal closes Yahoo said in a regulatory filing on Monday
The remaining directors will govern Altaba a holding company whose primary assets will be a 15 percent stake in Chinese e commerce company Alibaba NYSE BABA Group Holding Ltd and 35 5 percent stake in Yahoo Japan
The new company also named Eric Brandt chairman of the board effective Jan 9 |
CSCO | Uber investor Lead Edge Capital closes 520 million fund | By Heather Somerville
SAN FRANCISCO Reuters Venture firm Lead Edge Capital which has backed companies such as Uber UBER UL and Spotify has raised its largest fund to date in the latest sign of the rush of capital flowing into private tech companies
New York City based Lead Edge Capital said on Thursday it has closed a 520 million fund to invest in software and internet startups The new fund size is an 80 percent step up from its previous fund of 290 million and is 10 times larger than its first fund a 52 million pot in 2011
The firm s growing fund size is consistent with the broader trend in the venture industry of firms raising ever larger funds and fundraising more quickly as startups also raise ever larger funding rounds and stay private longer relying on venture capitalists and other private investors rather than the public stock markets for funding
Stuff is more expensive today than it was five years ago said Mitchell Green the firm s founder and managing partner There is a lot of money chasing too few deals
Increasingly venture firms are competing against big mutual funds sovereign wealth funds and SoftBank Group Corp s Vision Fund a nearly 100 billion investment vehicle to invest in the hottest tech companies The competition requires they have more cash available
Lead Edge previously invested in ecommerce and internet giant Alibaba NYSE BABA Group Holding food delivery service Delivery Hero and cybersecurity company Duo Security which was acquired by Cisco Systems Inc NASDAQ CSCO for 2 35 billion Uber Technologies Inc is its highest profile investment that remains a standalone private company
Lead Edge was also an early investor in Bird the controversial Southern California scooter company valued at 2 billion
The Bird investment aside Lead Edge tends to invest in later stage companies that generally have at least 20 million in revenue the firm s partners said in an interview Its strategy means it avoids the youngest and riskiest startups so fewer of its investments go bust but because Lead Edge invests when companies are more valuable its returns can be lower than other venture capital firms the partners said
The new fund brings Lead Edge s total capital under management to 1 5 billion About 70 percent of the firm s fund comes from wealthy individuals who include technology executives entrepreneurs and dealmakers |
CSCO | Finisar beats by 0 06 beats on revenue | Finisar NASDAQ FNSR Q1 Non GAAP EPS of 0 18 beats by 0 06 GAAP EPS of 0 16 Revenue of 317 34M 7 2 Y Y beats by 1 48M Shares 6 08 Press ReleaseNow read |
CSCO | Kudlow Says U S Willing to Talk With China as Tariffs Loom | Bloomberg President Donald Trump is willing to meet with Chinese leader Xi Jinping as the two nations square off over trade but Beijing needs to show it s open to compromise said White House economic adviser Larry Kudlow
Kudlow declined to say if the Trump administration will clarify Friday whether it will follow through with a plan to impose tariffs on 200 billion in Chinese goods the day after a public feedback period ended We will evaluate the comments and we will make a decision in terms of the volume tariff rate and timing he said in an interview with Bloomberg TV
While China s response to U S demands has been unsatisfactory Trump is still speaking to Xi and would be open to meeting in person said Kudlow director of the White House s National Economic Council An opportunity could take place when world leaders gather at the UN General Assembly in New York this month and the Group of 20 summit in Argentina in November he said
It s never too late to make good trade policy said Kudlow But I will say this the world trading system is broken Trump is dead serious in his determination to push China to reform its trade policies he added
Trump is getting a last minute earful from prominent technology companies and retailers as he considers whether to follow through with his plan to ratchet up tariffs on Chinese exports
Time to Stop
Members of the public had until Thursday to comment on the administration s plan to slap tariffs on everything from bicycles and baseball gloves to digital cameras paving the way for Trump to announce the tariffs as early as Friday As of Friday morning in Washington the White House had made no announcement
Trump in an interview with Bloomberg News last week showed no sign of backing down repeating his long standing complaint that China has taken advantage of the U S and its leaders for decades It s time to stop We can t let this happen the president said
The U S Trade Representative s office didn t respond to a request for comment
Tariff Plea
On Thursday Cisco NASDAQ CSCO Hewlett Packard and other technology companies sent a letter to U S Trade Representative Robert Lighthizer urging the administration to avoid imposing more tariffs By increasing duties on telecommunications networking gear the administration would raise the cost of accessing the Internet and slow the roll out of next generation wireless technologies the companies said
Manufacturers and small and mid sized firms in particular can t quickly adjust and the tariffs imposed so far haven t led to any meaningful concessions a coalition of the National Retail Federation and 150 organizations said in separate comments to Lighthizer The administration should cease further tariffs actions and give another shot at talks for a trade deal with with China it said
Tit for tat tariffs are counterproductive and so far have only produced increased costs for American businesses farmers importers exporters and consumers the coalition said
The latest installment of tariffs would bring to 250 billion the total value of Chinese goods hit with duties covering nearly half of all imports into the U S last year Beijing has threatened to retaliate with duties on 60 billion in American products
China will be forced to retaliate if the U S ignores resistance in public hearings and imposes additional tariffs said Gao Feng a Ministry of Commerce spokesman at a regular briefing on Thursday in Beijing
The trade conflict between the world s two biggest economies shows little sign of abating roughly two months after the U S imposed its first round of tariffs on Chinese goods and negotiations to defuse the tensions have stalled The International Monetary Fund has warned that a trade war could undermine the strongest global upswing in years
Business Warnings
At public hearings last month companies warned that fresh duties on Chinese imports could hike costs and stifle innovation Almost 350 individuals from companies trade associations and other entities testified with most opposed to the levies Many lawmakers including from Trump s own Republican party oppose the president s zeal for tariffs but have limited options for curbing such sanctions
Efforts to negotiate a U S China truce have proved fruitless Two days of talks in Washington in August failed to yield a breakthrough following three rounds of unsuccessful talks earlier in the year dimming hopes of a compromise
EU Nafta
The two nations have maintained contact on a working level since Vice Commerce Minister Wang Shouwen visited the U S last month Gao said on Thursday
U S trade officials are juggling a number of high profile files in addition to the China tariffs at the same time as the president tries to tamp down reports of resistance to his agenda from within his own administration
Lighthizer has been trying since last week to reach a deal with Canada on a revised North American Free Trade Agreement with Mexico and he heads to Brussels on Monday to meet with EU officials to discuss the outlines of a trade deal announced in late July
The tariffs are intended to punish China for what the Trump administration says are unfair trading practices including the forced transfer of intellectual property from U S companies trying to get a foothold in the Chinese market
Investors in U S assets have generally shrugged off the escalating trade war with China said Kristina Hooper chief global market strategist at Invesco Ltd which manages 988 billion in assets At some point the duties will start to hurt American companies she said
If we continue on our current trajectory I do believe we ll experience some kind of reckoning Hooper said It may take longer to figure out what the repercussions are but the U S will not be unscathed |
VZ | VZ Forms Falling Wedge To Blue Rising Megaphone Bottom | VZ has Formed a Falling Wedge to its Blue Rising Megaphone Bottom
Verizon Communications Inc NYSE VZ has formed a falling wedge to its light blue rising megaphone bottom It s tagging the bottom of that falling wedge today
The move down can t end on an exact tag of that wedge bottom So VZ could pierce the wedge bottom a bit or form a megaphone bottom from here to tag the bottom of the light blue rising megaphone and then take off upwards past the July 2016 high
Or VZ could break out the bottom of the falling wedge and through the bottom of the blue rising megaphone back to the red megaphone VWAP and reverse there for a trip back to the all time high
Neely Long Term Set Up Targets at Least the All Time High
VZ has a Neely long term set up on the chart for a trip back to at least the all time high The set up is the crash into the 2002 low partial retrace of the crash with extended topping then retest of the 2002 crash low After that retest you d expect to see a return to the all time high and the price could go well beyond that
If VZ retests the red megaphone VWAP we ll likely just be redrawing the blue rising megaphone If VZ turns at or above the blue rising megaphone bottom it will be putting in a rising megaphone extension within it Either way VZ should be setting off soon on a major move up
A Breakout Through the Navy Megaphone VWAP Suggests a Substantial Higher High
VZ essentially bogged down at VWAP of its dot com megaphone top navy blue megaphone The red megaphone is part of a major bottoming complex and is now legal for an upwards breakout targeting the 85 90 area or higher
Potential Sornette Melt Up Set Up
If VZ makes it back to the red megaphone VWAP it will also have formed a Sornette melt up set up A breakout through the July 2016 high would suggest not only a huge move but an extremely fast one to at least the target area |
VZ | Samsung to disable Note 7 phones in the U S via software update | Reuters Samsung Electronics KS 005930 Co Ltd said on Friday that a software update for Galaxy Note 7 smartphones will be released mid December in the United States preventing them from charging and functioning as mobile phones rendering them useless The smartphone maker said that more than 93 percent of all recalled Galaxy Note 7 devices had been returned as a part of its exchange program in the United States The U S Transportation Department and other agencies in October ordered Galaxy Note 7 owners from carrying the devices or stowing them in checked baggage during flights following reports of fires in replacement Note 7 devices
However Verizon Communications Inc NYSE VZ said it would not take part in the update because of the added risk this could pose to Galaxy Note7 users that do not have another device to switch to |
VZ | Yahoo under scrutiny after latest hack Verizon seeks new deal terms | By Greg Roumeliotis and Jessica Toonkel NEW YORK Reuters Yahoo Inc O YHOO came under renewed scrutiny by federal investigators and lawmakers on Thursday after disclosing the largest known data breach in history prompting Verizon Communications Inc N VZ to demand better terms for its planned purchase of Yahoo s internet business Shares of the Sunnyvale California based internet pioneer fell more than 6 percent after it announced the breach of data belonging to more than 1 billion users late on Wednesday following another large hack reported in September Verizon which agreed to buy Yahoo s core internet business in July for 4 8 billion is now trying to persuade Yahoo to amend the terms of the acquisition agreement to reflect the economic damage from the two hacks according to people familiar with the matter The U S No 1 wireless carrier still expects to go through with the deal but is looking for major concessions in light of the most recent breach according to another person familiar with the situation Asked about the status of the deal a Yahoo spokesperson said We are confident in Yahoo s value and we continue to work towards integration with Verizon Verizon had already said in October it was reviewing the deal after September s breach disclosure Late on Wednesday it said it would review the impact of this new development before reaching any final conclusions about whether to proceed The company declined to comment beyond that statement on Thursday Verizon has threatened to go to court to get out of the deal if it is not repriced citing a material adverse effect said the people familiar with the matter who asked not to be identified because the negotiations are confidential No court in Delaware where Yahoo is incorporated has ever found that a material adverse effect has occurred that would allow companies to terminate a merger agreement Nevertheless the threat of a court case on the issue has been successfully used by companies to renegotiate deals and experts said that some concessions from Yahoo are likely given the magnitude of the cyber security breaches Renegotiating the deal s price tag would be the simplest but also least likely scenario because the impact of the data breaches will not be apparent for some time according to Erik Gordon a professor at the University of Michigan s Ross School of Business A more likely concession would be for Yahoo to agree to compensate Verizon after the close of the deal based on the liabilities that occur The two companies may also agree to extend the close of the deal to allow for more time for information to come in on the impact of the breaches Gordon suggested Verizon shares rose 0 4 percent to close at 51 81 in line with the S P 500 Index SPX Yahoo closed down 6 1 percent at 38 41 BIGGEST BREACH Yahoo said late on Wednesday that it had uncovered a 2013 cyber attack that compromised data of more than 1 billion user accounts the largest known breach on record It said the data stolen may have included names email addresses telephone numbers dates of birth hashed passwords and in some cases encrypted or unencrypted security questions and answers The company added that some of its partners were affected One such partner Europe s Sky Plc L SKYB said Yahoo provides email services to its 2 1 million Sky com email account holders but it was unclear how many of those accounts were affected The announcement followed Yahoo s disclosure in September of a separate breach that affected over 500 million accounts which the company said it believed was launched by different hackers The White House said on Thursday the U S Federal Bureau of Investigation was probing the breach Several lawsuits seeking class action status on behalf of Yahoo shareholders have been filed or are in the works Meanwhile Democratic Senator Mark Warner of Virginia said he was looking into Yahoo s cyber security practices This most recent revelation warrants a separate follow up and I plan to press the company on why its cyber defenses have been so weak as to have compromised over a billion users he said in a statement Warner who will become the top Democrat on the Senate Intelligence Committee next year described the hacks as deeply troubling New York Attorney General Eric Schneiderman urged anyone with a Yahoo account to change their passwords and security questions and said he is examining the breach s circumstances and the company s disclosures to law enforcement Germany s cyber security authority the Federal Office for Information Security BSI advised German consumers to consider switching to safer alternatives for email and criticized Yahoo for failing to adopt modern encryption technique in a statement The latest breach drew widespread criticism from security experts several advising consumers to close their Yahoo accounts Yahoo has fallen down on security in so many ways I have to recommend that if you have an active Yahoo email account either direct with Yahoo of via a partner like AT T NYSE T get rid of it Stu Sjouwerman chief executive of cyber security firm KnowBe4 Inc said in a broadly distributed email
A Yahoo spokesperson in response to criticism of the company s security measures said on Thursday We re committed to keeping our users secure both by continuously striving to stay ahead of ever evolving online threats and to keep our users and platforms secure |
CSCO | Will Security Applications Aid Cisco s CSCO Q2 Earnings | Cisco Systems Inc NASDAQ CSCO is set to report second quarter fiscal 2020 results on Feb 12 The company s results are likely to reflect robust adoption of its security solutions amid weakness in service provider domain Click to know how Cisco s overall second quarter performance is expected to be Strength in Security Solutions A Key CatalystStrong demand witnessed by web security unified threat network security and advanced threat solutions in the fiscal first quarter is likely to have continued in second quarter 2020 primarily driven by growing security headwinds faced by enterprises globally The company s expanded family of cloud security solutions that helps in securing identity endpoints and the network is expected to have expanded customer base in the fiscal second quarter The Zacks Consensus Estimate for Security is pegged at 733 million indicating an improvement of 11 4 from the figure reported in the year ago quarter Cisco Systems Inc Revenue Quarterly Robust Webex Portfolio Deserves a Special MentionThe Applications segment s fiscal second quarter top line is expected to have benefited from high demand for enterprise collaboration offerings including Webex Meetings Webex Devices and Webex Teams among others Cisco is integrating AI and ML capabilities into enterprise collaboration solutions aimed at increasing productivity of users and improving engagement In fact with Voicea acquisition the company is well poised to enhance Webex portfolio with AI based voice recognition and transcription capabilities These initiatives are expected to have bolstered adoption of Webex services in the to be reported quarter amid stiff competitive in the enterprise communication market from Microsoft s NASDAQ MSFT Teams and Slack NYSE WORK The Zacks Consensus Estimate for Applications revenues is pegged at 1 42 billion suggesting a decline of 2 9 from the year ago reported figure Other Factors to ConsiderGrowing clout of the company s Meraki solutions campus switches including Cat9K and Nexus 9K and HyperFlex data center offering are likely to have benefited Infrastructure Platforms segment s performance The Zacks Consensus Estimate for Infrastructure Platforms revenues is pegged at 6 62 billion suggesting a decline of 7 1 from the year ago reported figure Markedly during the quarter under review the company announced plans to acquire Exablaze to enhance Nexus switching portfolio with advanced FPGA capabilities Moreover in a bid to strengthen its network hardware business the company rolled out Cisco Silicon One Q100 networking chip in the quarter under review The new Silicon One Q100 networking processor functions as both switch and routing chip It is enabled to transfer data at a faster rate and can be programmed as required Notably Cisco s new Silicon One Q100 has been already gaining traction among prominent companies with significant data center operations including Microsoft and Facebook NASDAQ FB This is likely to have positively impacted the fiscal second quarter performance Management is anticipated to divulge more details on the latest product s business prospects in the upcoming earnings conference Nevertheless increasing investments on product enhancements and acquisitions amid stiff competition from Arista NYSE ANET and Juniper in networking infrastructure market is likely to have limited margin expansion in the fiscal second quarter Zacks RankCisco currently has a Zacks Rank 3 Hold You can see Zacks Top 10 Stocks for 2020In addition to the stocks discussed above would you like to know about our 10 finest buy and hold tickers for the entirety of 2020 Last year s 2019 Zacks Top 10 Stocks portfolio returned gains as high as 102 7 Now a brand new portfolio has been handpicked from over 4 000 companies covered by the Zacks Rank Don t miss your chance to get in on these long term buys |
CSCO | Stock Market News For Feb 11 2020 | Benchmarks closed in the green on Monday led by solid gains in technology shares as factories in China returned to business ignoring the coronavirus outbreak The Dow Jones Industrial Average DJI rose 174 31 points or 0 6 to close at 29 276 82 and the S P 500 rose 24 38 points or 0 7 to close at of 3 352 09 While the Nasdaq Composite Index closed at 9 628 39 gaining 107 88 points or 1 1 The fear gauge CBOE Volatility Index VIX decreased 0 5 to close at 14 97 Advancing issues outnumbered declining one for a 1 50 to 1 ratio on the NYSE and a 1 46 to 1 ratio on the Nasdaq favored advancers How Did the Benchmarks Perform As the news of factories reopening floated in the market investors regained confidence and that helped stocks to rally and expect energy financial and materials that ended in the red Meanwhile consumer discretionary immerged to be the largest percentage gainer out of all the 11 major sectors in the S P 500 Overall the S P 500 index recorded 46 new 52 week highs and 4 new lows On the other hand Nasdaq recorded 105 new highs and 96 new lows Chinese Factories Slowly Get Back to Business Coronavirus death toll has now risen to 908 with more than 40 171 confirmed cases per the China s health ministry s report on Monday The widespread of this virus epidemic had led to closure of Chinese factories leading to economic slowdown and disruption in global supply chains Especially for products that rely on Chinese manufacturers But Tesla Inc NASDAQ TSLA on Monday reported that its Shanghai factory had resumed production leading the company s shares to rise 3 1 Additionally Foxconn resumed factory output with 10 of its workforce this helped Apple Inc s NASDAQ AAPL shares to climb 0 5 Shares of Amazon com Inc NASDAQ AMZN a Zacks Rank 3 Hold company also got a boost from the news and soared 2 6 higher yesterday You can see Though discovery of new cases in the countries beyond China keeps the World Health Organization worried news of factories reopening also boosted companies with global presence and helped the Nasdaq and S P 500 hit new records The Dow was lifted by the Boeing Company NYSE BA and Microsoft Corporation s NASDAQ MSFT gain of 2 4 and 2 6 respectively Additionally Cisco Systems Inc NASDAQ CSCO and Visa Inc NYSE V added more than 1 5 each helping the Dow recover after falling more than 200 points on Friday Zacks Top 10 Stocks for 2020In addition to the stocks discussed above would you like to know about our 10 finest buy and hold tickers for the entirety of 2020 Last year s 2019 Zacks Top 10 Stocks portfolio returned gains as high as 102 7 Now a brand new portfolio has been handpicked from over 4 000 companies covered by the Zacks Rank Don t miss your chance to get in on these long term buys |
CSCO | Tech Daily FTC Investigation Trump Testimony MWC More | The Federal Trade Commission FTC is investigating big tech for antitrust activity Amazon NASDAQ AMZN is seeking Trump testimony coronavirus impact on Apple s NASDAQ AAPL Chinese manufacturing companies pulling out of MWC and other stories are detailed below FTC Investigates Big TechThe FTC has asked Alphabet NASDAQ GOOGL Amazon Apple Facebook NASDAQ FB and for the first time Microsoft NASDAQ MSFT to furnish details terms scope structure and purpose of acquisitions going back to 2010 that were exempted because of their small size from antitrust scrutiny by the federal government under the Hart Scott Rodino or HSR Act The FTC derives authority under Section 6 b of the FTC Act to collect non public information from companies that can then be integrated into a report and used to improve understanding of markets boost enforcement strategies formulate industry guidelines and best practices and facilitate antitrust investigations FTC Chairman Joseph Simons said If during the study we see that there are transactions that are problematic we could go back and initiate enforcement action to deal with those transactions He also said that Digital technology companies are a big part of the economy and our daily lives This initiative will enable the Commission to take a closer look at acquisitions in this important sector and also to evaluate whether the federal agencies are getting adequate notice of transactions that might harm competition The companies are already being investigated by the Justice Department the FTC state attorneys general and the House Judiciary Committee on concerns that their size and financial might position them to unfairly maneuver situations to either defend their market share or expand into adjacent areas And tech companies have fueled these concerns with some big deals such as Facebook s acquisition of Instagram and WhatsApp Amazon s acquisition of Whole Foods and Google s acquisition of Waze Nest and DoubleClick All the companies have spent more than a billion dollars in 2019 on just the kind of small acquisitions on which the FTC is seeking information Paul Holland a general partner at Foundation Capital said They ve created a true marketplace for startups They ve created a destination for them The problem is they ve simply become too big to control with regulations Amazon Wants Trump TestimonyAmazon s AWS lost the 10 billion Joint Enterprise Defense Infrastructure Cloud or JEDI contract to Microsoft but it vowed at the time to not take it lying down Following up on that promise it first filed a motion in court to delay the Department of Defense DoD deal until a court ruled on its challenge of the award That was followed by a discovery motion seeking to make President Donald Trump and Defense Secretary Mark Esper in particular and also former Defense Secretary James Mattis Pentagon s chief information officer Dana Deasy and the selection authority and its chairman to testify in court Amazon contends that President Trump has unique knowledge about his involvement in the bid process including private conversations with and instructions to others about the process and the award Also President Trump is the only individual who can testify about the totality of his conversations and the overall message he conveyed AWS seeks leave to depose President Trump about conversations or other involvement he had regarding the JEDI bid process or efforts to harm Amazon or AWS Further President Trump has repeatedly demonstrated his willingness to use his position as President and Commander in Chief to interfere with government functions including federal procurements to advance his personal agenda an AWS spokesperson said in a statement issued to Reuters So now Amazon wants to establish in court exactly how President Trump s order to screw Amazon was carried out during the decision making process AWS has alleged zero facts nothing plausibly indicating any DOD official involved in the JEDI procurement at any level was actually influenced by the alleged anti Bezos statements Microsoft wrote in its own statement Amazon must prove the connect between Trump s personal animosity toward its CEO and the DoD award if the lawsuit is to succeed Google Holiday Rental Service Under FireForty companies and trade bodies in nine EU countries Switzerland and the U S have written to EU Competition Commissioner Margrethe Vestager urging an investigation into the way Google ranks and displays that they allege favor its own service over its competitors Google prominently displays its product at the top of its general search results pages along with pictures a map review ratings and prices which the companies say is sufficient indication of a competitive strategy for Google to reduce them and the industry to mere content providers for the one stop shop of Google s new product Such favorable ranking and display secures Google s service more user attention and clicks than any competing service may acquire even if these are more relevant for the user s search query says the letter In Google s defense a spokeswoman said We re currently testing a new format for specialist searches in Europe including jobs local and travel where people might see a carousel of links to direct sites across the top of the search results and this is designed to demonstrate the range of results available Apple s Chinese ProductionMedia reports indicate that manufacturing at Apple s Chinese partner Foxconn is off to a slow start as spread of the coronavirus couldn t be contained as well as hoped Chinese authorities are asking for greater protections before normal production can resume Inflation rates are at an eight year high as supply shortages are leading to stockpiling thus deepening the shortage Rsearch firm TrendForce expects first quarter global smartphone production to fall by 12 to its lowest level in five years Apple supplier Foxconn is taking to steps to comply with government directives It s also using its own production lines in the southern province of Guangdong to make masks for workers The goal is to get to two million masks a day by late February when the plant will work at full capacity Meanwhile sources tell Reuters that around 16 000 people or 10 of its Zhengzhou workforce have returned to work while about 20 000 workers or roughly 10 of the Shenzhen workforce are back from the New Year holiday The Shenzhen workforce will return in stages Foxconn s slow return indicates the extent of the problem that the World Health Organization has declared to be a global health emergency It s a huge disruption because Foxconn makes components for many electronics manufacturers globally so its shutdowns impact the global supply chain In Apple s case it could not only push out iPhone sales into the next quarter but also disrupt its iPods business as Wedbush analyst Daniel Ives says According to him every week of closure will push back around a million units of sales so he expects a 3 5 million unit risk to his 44 million estimate if the disruption continues to February end He says that iPods are already seeing supply shortages so could be more severely impacted Tech Titans Pull Out of Barcelona MWCAmazon became the fourth company to pull out of the annual gathering on Feb 24 27 The first three to pull out were South Korea s LG Electronics Swedish equipment maker Ericsson BS ERICAs and U S chipmaker NVIDIA NASDAQ NVDA After Amazon Sony Intel NASDAQ INTC and Cisco NASDAQ CSCO also pulled out It will be a big loss for Barcelona if the event has to be cancelled because it reportedly brings around 546 million in revenues and 14 000 temporary jobs Amazon s was supposed to be a significant presence with its cloud computing arm AWS slated to host a full day conference track on Day 1 Sony s was a launch event that is now set to be hosted via video As we place the utmost importance on the safety and wellbeing of our customers partners media and employees we have taken the difficult decision to withdraw from exhibiting and participating at MWC 2020 in Barcelona Spain it said in a statement The safety and well being of all our employees and partners is our top priority and we have withdrawn from this year s Mobile World Congress out of an abundance of caution We are grateful to the GSMA for their understanding and look forward to attending and supporting future Mobile World Congress events Intel said in a statement Chinese companies Xiaomi Huawei and ZTE HK 0763 have said they will attend Their China based employees are self isolating ahead of the event to ensure they are free of the illness The GSMA telecoms industry association which runs the Congress earlier said that the show would continue as planned with more stringent health protections But with some of the biggest companies bowing out there could be a change in plans Spanish media has since reported that organizers will meet on Friday to decide whether or not to go ahead with the event
The virus has spread to at least 27 countries and territories according to a Reuters count based on official reports The death toll crossed 1 000 and infections reached 43 000 as of Tuesday Executive ChangesApple Hires Warner Music Executive Warner Music Group veteran Jeff Bronikowski is now at Apple as its global head of strategic music initiatives according to his LinkedIn NYSE LNKD post Apple has more than 60 million paid music subscribers about half the number of market leader Spotify NYSE SPOT The company is now focused on growing its services business strongly as it adjusts to a market where devices are changed less frequently The Music business is where it has had some immediate success so it makes sense to focus on growing it Google HR Chief Steps Down Google s head of human resources Eileen Naughton is leaving the company to move closer to her family She may continue in some smaller role at the company as some news reports say Google added 70 000 employees during her 13 year tenure She will be working with CEO Pichai and CFO Porat to find a successor Sony Executive to Lead Amazon Entertainment Chairman of Sony Pictures Television and former chief of the Hulu streaming service Mike Hopkins is moving to Amazon to head its Studios and Prime Video divisions Jennifer Salke a former NBC executive hired in 2018 to lead Amazon s studios and Greg Hart chief of the Prime Video streaming service will report to him and he in turn will report to CEO Jeff Bezos Amazon veteran Jeff Blackburn previously headed Amazon Studios while also overseeing the company s music streaming service business development and advertising units Hopkins is being brought in to fill some of these roles as Blackburn takes a one year break Today s Best Stocks from ZacksWould you like to see the updated picks from our best market beating strategies From 2017 through 2019 while the S P 500 gained and impressive 53 6 five of our strategies returned 65 8 97 1 118 0 175 7 and even 186 7 This outperformance has not just been a recent phenomenon From 2000 2019 while the S P averaged 6 0 per year our top strategies averaged up to 54 7 per year |
CSCO | Cisco Systems CSCO Q2 Earnings And Revenues Beat Estimates | Cisco Systems NASDAQ CSCO came out with quarterly earnings of 0 77 per share beating the Zacks Consensus Estimate of 0 76 per share This compares to earnings of 0 73 per share a year ago These figures are adjusted for non recurring items
This quarterly report represents an earnings surprise of 1 32 A quarter ago it was expected that this seller of routers switches software and services would post earnings of 0 81 per share when it actually produced earnings of 0 84 delivering a surprise of 3 70
Over the last four quarters the company has surpassed consensus EPS estimates four times
Cisco which belongs to the Zacks Computer Networking industry posted revenues of 12 01 billion for the quarter ended January 2020 surpassing the Zacks Consensus Estimate by 0 16 This compares to year ago revenues of 12 45 billion The company has topped consensus revenue estimates four times over the last four quarters
The sustainability of the stock s immediate price movement based on the recently released numbers and future earnings expectations will mostly depend on management s commentary on the earnings call
Cisco shares have added about 2 4 since the beginning of the year versus the S P 500 s gain of 3 9
What s Next for Cisco
While Cisco has underperformed the market so far this year the question that comes to investors minds is what s next for the stock
There are no easy answers to this key question but one reliable measure that can help investors address this is the company s earnings outlook Not only does this include current consensus earnings expectations for the coming quarter s but also how these expectations have changed lately
Empirical research shows a strong correlation between near term stock movements and trends in earnings estimate revisions Investors can track such revisions by themselves or rely on a tried and tested rating tool like the Zacks Rank which has an impressive track record of harnessing the power of earnings estimate revisions
Ahead of this earnings release the estimate revisions trend for Cisco was mixed While the magnitude and direction of estimate revisions could change following the company s just released earnings report the current status translates into a Zacks Rank 3 Hold for the stock So the shares are expected to perform in line with the market in the near future You can see the complete list of today s Zacks 1 Rank Strong Buy stocks here
It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead The current consensus EPS estimate is 0 81 on 12 70 billion in revenues for the coming quarter and 3 25 on 51 06 billion in revenues for the current fiscal year
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well In terms of the Zacks Industry Rank Computer Networking is currently in the bottom 35 of the 250 plus Zacks industries Our research shows that the top 50 of the Zacks ranked industries outperform the bottom 50 by a factor of more than 2 to 1 |
CSCO | After Hours Gainers Losers 08 15 2018 | Top Gainers BGG 9 3 CSCO 5 8 AQXP 4 9 KOS 3 0 Top Losers SPTN 11 7 GNL 4 5 TVIX 2 9 TIS 2 6 SBBP 2 0 Now read |
CSCO | Cisco s software push fuels quarterly beat strong forecast | Reuters Cisco Systems Inc O CSCO topped Wall Street targets for quarterly revenue and profit and forecast first quarter sales above estimates on Wednesday as the network gear maker s transition to a software focused company gains traction Shares rose 6 1 percent to 46 53 in extended trading as the company also highlighted improving subscription based revenue Cisco like other legacy technology companies has been launching new products focused on high growth areas such as cyber security and Internet of Things to cushion sluggish demand in its traditional routers and switches business We re seeing the returns on the investments we are making in innovation and driving the shift to more software and subscriptions Chief Financial Officer Kelly Kramer told analysts on a post earnings call The company forecast first quarter revenue growth of between 5 percent and 7 percent implying 12 86 billion at the mid point and adjusted profit of between 70 cents and 72 cents per share Analysts were expecting a profit of 69 cents and revenue of 12 61 billion according to Thomson Reuters I B E S Subscriptions which provide a more steady revenue stream represented 56 percent of total software revenue in the reported quarter the company said Revenue in the security business which offers firewall protection and breach detection systems rose 12 percent to 627 million beating estimates of 615 8 million Deferred revenue in the business jumped 23 percent Cisco said in August it would buy cyber security provider Duo Security for 2 35 billion the latest in a series of acquisitions by Chief Executive Officer Chuck Robbins as he builds out the company s newer businesses CFO Kramer told Reuters Cisco is looking at more acquisitions in the security space Revenue in its infrastructure platform division which houses the company s traditional business of supplying switches and routers rose 7 percent to 7 44 billion Analysts had expected revenue of 7 32 billion On an adjusted basis the company earned 70 cents per share beating analysts expectation by 1 cent
Total revenue rose 6 percent to 12 84 billion topping average estimate of 12 77 billion |
VZ | Crown Castle CCI Planning To Expand Small Cell Operations | Leading wireless tower operator and real estate investment trust Crown Castle International Corp NYSE CCI has decided to double its existing small cell network within the next two years According to a report by Guggenheim Equity Research the company will spend around 1 2 billion to deploy 25 000 new small cell nodes over the next 18 24 months At present small cell networks are in high demand from wireless service providers to improve coverage and increase capacity Recently Crown Castle acquired privately held Wilcon Holdings LLC a premier service provider of dark fiber which will augment the wireless tower operator s small cell backhaul Management is gradually developing small cell networks to supplement the macro site tower business After the Wilcon acquisition Crown Castle will attain ownership rights of over 28 000 route miles of fiber Crown Castle is a leading wireless communication tower operator in the U S It has approximately 40 000 towers and 29 000 route miles of fiber supporting small cells More than 90 of its quarterly revenues come from wireless service providers like Verizon Communications Inc NYSE VZ AT T Inc NYSE T and T Mobile US Inc NYSE T It has acquired 9 700 wireless towers from AT T and taken over 7 200 wireless towers of T Mobile US Crown Castle s ongoing efforts in repositioning itself from a tower company to a fiber provider focused on small cell opportunity appear impressive In the last few years the company has purchased three fiber operators FPL FiberNet Holdings LLC in Jan 2017 Quanta Fiber called Sunesys in Apr 2015 and 24 7 Mid Atlantic Network in Sep 2014 In accordance with the current market scenario Crown Castle is pursuing small cell deployments for its wireless customers The company is making this move in order to enhance its networks to meet robust demand for high speed high capacity wireless services Using small cells in unlicensed 3 5 GHz band will significantly reduce cost of operations for wireless operators The 3 5 GHz radio frequency is being considered in many parts of the world for the upcoming 5G wireless standard Price performance of Crown CastleSo far 2017 has turned out highly successful for Crown Castle Year to date the stock price has surged 14 45 outperforming the Zacks categorized industry s gain of a mere 3 88 Nevertheless high customer concentration foreign currency exchange rate risks stiff competition integration risks rising operating expenses and a highly leveraged balance sheet are near term concerns for the company We believe that these are primarily responsible for the stock currently carrying a Zacks Rank 3 Hold You can see 5 Trades Could Profit Big League from Trump PoliciesIf the stocks above spark your interest wait until you look into companies primed to make substantial gains from Washington s changing course Today Zacks reveals 5 tickers that could benefit from new trends like streamlined drug approvals tariffs lower taxes higher interest rates and spending surges in defense and infrastructure |
VZ | Verizon The Worst DJIA Stock Of 2017 | According to a report by Yahoo Verizon Communications Inc NYSE VZ stock is the worst performer among the 30 stocks within the Dow Jones Industrial Average so far in 2017 after the share price of the telecom giant is down by over 18 5 this year And indeed Verizon finished 2016 close to 53 40 a share Last week it fell to as ow as 43 21
And while there might have been plenty of fundamental reasons for VZ s fall such as its over leveraged balance sheet or high price to earnings ratio hardly anyone expressed any concerns while the stock was still trading above 50 We did
Back in August 2016 while the stock price was slightly below 53 we published Verizon where the following chart was included
Almost a year ago the weekly price chart of Verizon stock allowed us to recognize a complete five wave up from the bottom in 2008 According to the a three wave correction in the other direction follows every impulse In addition there was a bearish RSI divergence between waves III and V So instead of joining the bulls near 53 a share we thought investors should be careful because the stock was on the verge of a significant pullback probably down to the area of wave IV It is July 2017 now and this is an updated chart of Verizon Communications Inc NYSE VZ
It is true that the plunge between 56 95 and 43 21 already has a three wave structure which in theory means the 5 3 wave cycle is complete and the uptrend should be expected to resume But it is also true that the current decline is quite small relative to the preceding impulse Therefore we believe one of the following scenarios is more likely
The first alternative suggests that wave C of II is not over just yet and should extend further to the downside until reaching the mid 30s The other equally probable count suggests that Verizon s correction could extend more in terms of time than in terms of price as shown below
If the market chooses this count wave II could evolve into a more complex W X Y double zig zag correction from now on Then the recent three wave slump would turn out to be just the first phase wave W which should be followed by a three wave recovery in wave X and then another three wave decline in wave Y To be honest we like this count most because it includes the time factor into the picture Time will tell which one the market is going to pick but chances are Verizon s troubles are not over yet |
VZ | Irish data Commissioner steps up investigation into Yahoo email scanning | By Tom Bergin LONDON Reuters Ireland s Data Protection Commissioner DPC said on Monday it was trying to ascertain if Yahoo Inc s O YHOO decision to scan clients email accounts at the behest of the U S authorities last year broke European law Sources have told Reuters that Yahoo used a software program to sift through millions of emails for specific information related to national security At the time last month the DPC said it was seeking more information from Yahoo Now it has begun actively investigating the case it said on Monday We are in regular contact with Yahoo EMEA Europe Middle East and Africa in clarifying certain facts of this case and will then proceed to take appropriate next steps a DPC spokeswoman said in a statement Yahoo did not respond to a request for comment Last month it declined to confirm whether Europeans emails were intercepted as part of the program Yahoo said it complied with the laws of the United States Lawyers said mass surveillance of EU citizens email would be against incoming European Union data rules The DPC the lead European regulator on privacy issues for Yahoo because its European headquarters are in Dublin is trying to ascertain what exactly Yahoo did and whether it breached the privacy rules that prevailed last year We are receiving active and engaged responses to our queries the spokeswoman said
Analysts said the email scanning could prompt Verizon N VZ Communications to rethink the terms of a planned 4 8 billion takeover of Yahoo |
VZ | CBS adds live NFL games to its streaming video service | Reuters CBS Corp s All Access subscription based streaming video service will offer live National Football League games beginning on Sunday CBS said on Thursday The agreement covers all NFL games that air on CBS throughout the rest of the current season and post season it said in a statement The specific games that subscribers will have access to on Sundays depends on which game their local CBS station is carrying Terms of the deal were not disclosed by either CBS or the NFL The deal covers all tablets and connected TV devices where CBS All Access is available For mobile customers the games will be available only to subscribers who are also Verizon Communications Inc NYSE VZ customers due to the telecom company s exclusive mobile rights deal with the NFL All Access costs subscribers 6 a month for live and on demand content though the lack of pro football has been cited by analysts as an impediment to expanding the platform CBS is planning two TV series that will be exclusive to CBS All Access a spinoff of The Good Wife and a new Star Trek series as another way of boosting subscribers The multiyear deal is a way for the league to reach consumers who do not subscribe to a TV package The NFL has been experimenting in recent years with distributing its games over the internet Last year the league offered a free livestream of its game between the Buffalo Bills and Jacksonville Jaguars on Yahoo NASDAQ YHOO Inc This year the NFL reached a deal with Twitter Inc NYSE TWTR that allowed the social media company to simulcast 10 Thursday games that aired on television Distribution of our games on CBS All Access is a win for the millions of NFL fans across the country especially those looking to watch our games on these emerging digital platforms said NFL Commissioner Roger Goodell It has been a particularly rough season for the NFL in terms of TV viewership particularly during primetime There has been some uptick since the Nov 8 U S presidential election which the league had cited as one of the reasons for the ratings downturn Both CBS and 21st Century Fox Inc s Fox network had their most watched games of the season on Thanksgiving
CBS drew 27 6 million viewers for its Detroit Lions Minnesota Vikings matchup Fox garnered 35 1 million viewers for its game between the Dallas Cowboys and the Washington Redskins making it the most watched regular season NFL game in its history |
CSCO | Fabrinet FN Q2 Earnings Beat Estimates Revenues Rise Y Y | Fabrinet NYSE FN reported second quarter fiscal 2020 adjusted earnings of 1 per share that beat the Zacks Consensus Estimate by 7 5 and increased 3 1 year over year Revenues of 426 2 million beat the consensus mark by 3 1 and increased 5 8 year over year Strong growth in nearly all areas of the company s business due to stabilization of end market demand drove the top line Fabrinet Price Consensus and EPS Surprise End Market DetailsOptical Communication revenues 75 6 of total revenues rose 5 4 from the year ago quarter s figure to 322 1 million Within Optical Communications telecom revenues amounted to 248 million up 20 from the year ago quarter s levels The transfer of manufacturing responsibilities for Infinera s Coriant division products to Fabrinet s Thailand facility contributed to telecom growth Datacom revenues were 74 million down 25 3 from the year ago quarter s figure but marginally up sequentially The downside was caused by the stabilization of demand trends for datacom products Lasers Sensors Other revenues 24 4 to total revenues rose 6 8 from the year ago quarter to 104 1 million The uptick was driven by strong demand for industrial laser and other non optical applications Notably revenues from Industrial lasers amounted to 46 million while other non optical applications revenues were 33 million in fiscal second quarter sequentially up 12 2 and 20 respectively Currently Fabrinet has one customer that contributes 10 to revenues Notably the company was awarded a new project by Cisco NASDAQ CSCO which will make it the second customer to contribute 10 to revenues if it ramps up successfully Operating DetailsNon GAAP Gross profit increased 8 3 year over year to 50 8 million Moreover gross margin expanded 30 basis points bps year over year to 11 9 Selling and administrative expenses 4 2 to revenues increased 39 1 from the year ago quarter s figure to approximately 17 7 million Fabrinet reported Non GAAP operating profit of 38 5 million up 2 7 year over year However operating margin contracted 30 bps on a year over year basis to 9 Balance Sheet Cash FlowAs of Dec 27 2019 Fabrinet had cash cash restricted cash and investments worth 450 5 million compared with 436 4 million as of Sep 27 2019 Moreover as of Dec 27 2019 the company had a long term debt of 45 6 million compared with 48 6 million as of Sep 27 2019 In second quarter fiscal 2020 Fabrinet generated free cash flow of 40 9 million ROIC Non GAAP Net Income divided by average invested capital was 28 7 for second quarter fiscal 2020 compared with 30 4 in the year ago reported quarter GuidanceFor third quarter fiscal 2020 revenues are projected between 410 million and 418 million The revenue guidance is moderate due to the Coronavirus outbreak in China The Zacks Consensus Estimate is currently pegged at 415 7 million indicating 4 2 growth from the figure reported in the year ago quarter Additionally Fabrinet expects Non GAAP earnings between 92 cents and 95 cents per share The consensus mark for earnings is currently pegged at 95 cents suggesting 3 3 growth from the figure reported in the year ago quarter Zacks Rank Stocks to ConsiderFabrinet currently carries a Zacks Rank 3 Hold Silicon Motion Technology Corporation NASDAQ SIMO Perion Network Ltd NASDAQ PERI and CEVA Inc NASDAQ CEVA and are some better ranked stocks in the broader computer and technology sector All three stocks sport a Zacks Rank 1 Strong Buy You can see Silicon Motion Technology Corporation Perion CEVA are set to report quarterly results on Feb 6 12 and 18 respectively 7 Best Stocks for the Next 30 DaysJust released Experts distill 7 elite stocks from the current list of 220 Zacks Rank 1 Strong Buys They deem these tickers Most Likely for Early Price Pops Since 1988 the full list has beaten the market more than 2X over with an average gain of 24 7 per year So be sure to give these hand picked 7 your immediate attention |
CSCO | Week Ahead Virus Risks Fuel Uncertainty Powell Testifies To Congress | Wall Street s resilience will be tested again as some clarity emerges on whether the Chinese containment efforts were successful in limiting the spread of the virus globally The death toll and number of infections continue to rise in China but optimism is growing the lockdown efforts in Hubei have prevented a broader breakout The coronavirus economic impact to Chinese growth is unknown and if the larger manufacturers decide to keep their workers at home even longer markets will quickly have to price in further demand destruction
Fed Chair Powell s testimony to Congress will focus heavily on the coronavirus the new risk to the economic outlook Congress will want further clarity on what the Fed is prepared to do and how will the coronavirus impact their current plans with the growth of the balance sheet
On Tuesday Democrats will get another chance at restoring voters faith in elections Wall Street is primarily interested in seeing if a progressive will emerge as the frontrunner for the democratic nomination Financial markets however might not see any strong shifts with risk appetite as President Trump is still favored to get re elected
Earnings season will also deliver critical updates from Alibaba NYSE BABA Cisco NASDAQ CSCO Toshiba T 6502 and along with several car and plane manufacturers The latest updates on production in coronavirus impacted regions will be closely followed The extended halting of operations could start to weigh on multi nationals
United States
The upcoming week has a busy calendar filled with US economic data releases Fed speakers and Treasury auctions The US economy is strong and if growth reaccelerates and inflation picks up we could see rate hike calls return once coronavirus concerns ease Powell s testimony to Congress on Tuesday and Wednesday will be the main event with investors also paying a close look at retail sales and consumer sentiment data on Friday
Phase Two trade talks are should not begin until China knows how big of a downturn the coronavirus will deliver to their economy China may push for some leniency in delivering some of the phase one purchase commitments until travel has returned to normal The recent decision by the Chinese to halving tariff on US goods was done mainly with the hope the US will play nice until they know the overall impact the virus will have on their economy
United Kingdom
Brexit trade deal uncertainty has been dragging down the British pound Expectations are mixed on whether Boris Johnson will be able to secure a trade deal before the end of the year In the meantime the focus will shift to the reshuffling of his cabinet which is not expected to be massive and the economic health of the UK economy Tuesday will see the release of preliminary fourth quarter GDP December manufacturing and industrial production data and the trade balance release While we could see growth turn negative expectations are for the December production readings to rebound
Mexico
Mexico s debt burden has the government scrambling for cash New regulations are coming and will impact foreign online businesses The proposed sales tax will likely have an impact on Amazon NASDAQ AMZN Netflix NASDAQ NFLX Airbnb and Uber NYSE UBER Mexico has a very attractive tax rate for businesses one of the lowest in the OECD so the government might not see too much resistance with fresh taxes here
President Andres Manuel Lopez Obrador is trying to make up for a tax revenue shortfall of 3 around 109 billion pesos AMLO is trying to not raise Mexico s debt burden as they will see likely see a downgrade from the big three ratings and possibly risk a cut into junk status With the Mexican economy going through a downturn AMLO will try to not kill the economy with tax increases
On Thursday Mexico is expected to see the Banxico cut rates again by 25 basis points Economic activity has been weak for Mexico and sentiment is falling with domestic demand
TurkeyEmerging market FX will likely take a queue from the overall flight to quality trade The lira might not see too many big swings from the release of December industrial production data nor the November unemployment rate
RussiaThe Bank of Russia has rate cuts on cruise control following the sixth consecutive rate cut and could very well cut again at the next meeting Russia is vulnerable to weakness in China and could see the ruble continue to weaken on safe haven flows to the dollar
US Politics Following the debacle that was the Iowa Caucus all eyes will be on Tuesday s New Hampshire primary This is do or die time for Joe Biden and his campaign and if he has another disappointing outing that could be the end of his run for the nomination
ChinaCoronavirus and its global spread remains the hot topic News reports that the first person to person transfers outside of China should be causing concerns but it hasn t so far With a 14 day incubation period estimated for the virus we are approaching the deadline when we will find if the containment isolation process is a success
So far only 2 deaths have been reported outside of mainland China hence the bullish themes in equity markets this week Data will likely continue to take a back seat with the Wuhan virus grabbing the headlines
Next week s data releases include CPI data for January a slight increase is nothing extraordinary during the Lunar New Year period while retail sales and industrial production on Friday will suffer from the New year lockdown in some provinces
Risk
No signs of a pause in the escalation in the spread and death toll from the Wuhan virus this week and next would hurt risk appetite pressuring equities to the benefit of the usual safe havens of gold the yen Swiss franc the US dollar and US Treasuries It would be negative for oil and industrial metals
Hong KongAnti government protests have really taken a back seat with the coronavirus outbreak Surprisingly the number of Hong Kong cases remains relatively low 21 at time of writing but there s still the stigma of one virus related death The Hong Kong dollar is holding up pretty well with USD HKD still in the lower half of the permitted trading band In the meantime the offshore yuan has gained 0 35 versus the US dollar so far this week
Risk
Any escalation in the coronavirus outbreak especially given Hong Kong s connectivity with the Chinese mainland though border crossings have now been cut back to two locations would be negative for the HK33 index and could push USD HKD back to the upper half of the trading band Carrie Lam is still under pressure to resign
IndiaThe Indian central bank left its benchmark rate unchanged at Thursday s meeting It was the second meeting in a row the Bank stood pat after five consecutive cuts in a row during the 2018 2019 period but the central bank said the decision was not a pointer for future policy and a pickup in growth can be achieved by other means rather than monetary policy India now has three coronavirus cases
Risk
The Central bank acknowledged that the local economy was sluggish which would be helped by government spending
AustraliaRBA Governor Lowe has been moderate in recent speeches almost suggesting he was unwilling to cut rates further Local yields are higher this week and the Aussie has overcome disappointing data releases
Risk
Gov Lowe expects a 0 2 hit to Q1 GDP as a result of the wildfires If it s more it will be negative for the Aussie However that GDP data will not be available until June
New ZealandThe RBNZ is expected to hold rates at Wednesday s meeting though given the coronavirus outbreak we may hear comments about the preparedness scope to ease policy
Risk
A surprise cut would hurt the kiwi
JapanNothing of note for this week
Risk
Not really applicable the stronger yen on the back of safe haven flows is not expected to influence the economy too much
Market Oil After a fifth weekly decline with oil prices OPEC is still trying to see if they can do anything to prevent prices from collapsing any further We were suppose to see a commitment of an additional cut of 600K bpd but the Russians needed more time to agree upon it Oil will have trouble stabilizing unless we see positive news on the virus front or if we see a significant amount of supply removed
GoldIt seems gold prices are on the verge of ripping higher The impact of the coronavirus on the global economy is unknown and it seems many investors may have been too optimistic
Gold has been capped the 1 600 an ounce level but if we see severe weakness when Asia returns to the market we could easily prices target the 1 650 area
Bitcoin Bitcoin is getting a steady flow of good news that seems to make it poised to break above its recent 6 400 to 10 000 range Bitcoin is benefiting from some safe haven flows improved progress in mainstream usage and as the heavily anticipated halving event in May nears While Bitcoin is not a true safe haven cryptocurrency demand improved following the recent escalations in the Middle East Progress on the Lightning network is also boosting hopes we could see further improvements in mainstream usage The recent rally is a part of a broader appeal for risky assets as optimism grows the coronavirus impact might be limited to the first quarter and on optimism that China will play nice with the US on phase two trade talks
Economic Releases and EventsSunday February 9th
6 50 pm Japan Dec BoP Current Account Adjusted 1 66Te 1 79T prior
8 30 pm China Jan CPI Y Y 4 9 e v 4 5 prior PPI Y Y 0 0 e v 0 5 prior
Monday February 10th
Feb10th 15th China Jan Aggregate Financing New Yuan Loans and Money Supply Data
1 45 am Swiss Jan Unemployment Rate SA No est v 2 3 prior
2 30 am Swiss Jan CPI M M 0 3 e v 0 0 prior
8 15 am Canada Jan Housing Starts No est v 197 3K prior
8 30 am Canada Dec Building Permits M M No est v 2 4 prior
7 30 pm Australia Jan NAB Business Confidence No est v 2 prior
Tuesday February 11th
Japan closed in observance of National Foundation Day
4 30 am UK Preliminary Q4 GDP Q Q 0 0 e v 0 4 prior
4 30 am UK Dec Manufacturing Production M M 0 2 e v 1 7 prior
4 30 am UK Dec Industrial Production M M 0 2 e v 1 2 prior
5 00 am Eurozone Dec Industrial Production M M 0 3 e v 0 2 prior
6 00 am US Jan NFIB Small Business Index No est v 102 7 prior
10 00 am Fed Powell will discuss the economy and monetary policy before the House Financial Services Committee
8 00 pm New Zealand Central Bank RBNZ Expected to keep Official Cash Rate at 1 00
Wednesday February 12th
10 00 am Fed Chair Powell delivers semi annual testimony to the Senate Banking Committee
10 30 am US DOE Crude Oil Inventories
2 00 pm US Jan Federal Budget Balance No est v 13 3b prior
6 50 pm Japan Jan PPI Y Y 1 5 e v 0 9 prior
Thursday February 13th
2 00 am Germany Jan Final CPI Y Y 1 7 e v 1 7 prelim
8 30 am US Jan CPI M M 0 2 e v 0 2 prior Y Y 2 4 e v 2 3 prior
8 30 am US Weekly Jobless Claims
1 00 pm US Treasury 30 Year Bond Auction
4 30 pm New Zealand Jan Business Manufacturing Index No est v 49 3 prior
11 30 pm Japan Dec Tertiary Industry Activity M M 0 3 e v 1 3 prior
Friday February 14th
2 00 am Germany Q4 Preliminary Q Q 0 1 e v 0 1 prior Y Y 0 4 e v 0 5 prior
2 00 am Eurozone Q4 Preliminary Q Q 0 1 e v 0 1 prior Y Y 1 0 e v 1 0 prior
8 30 am US Jan Retail Sales M M 0 3 e v 0 3 prior
9 15 am US Jan Industrial Production M M 0 3 e v 0 3 prior
10 00 am US Feb Preliminary U of Michigan Sentiment 99 0e v 99 8 prior |
CSCO | Equities Higher For The Week As Oil Drops | Market Indexes It was an up week for the market with the NASDAQ hitting a new record although Friday saw losses in all 4 indexes
The Nasdaq hit a record high on Tuesday and the S P 500 headed for its biggest one day gain in about six months as fears of a heavy economic impact from the coronavirus outbreak waned after China s central bank intervened The People s Bank of China PBOC injected a total of 1 7 trillion yuan 242 74 billion through reverse repos on Monday and Tuesday as the central bank said it sought to stabilize financial market expectations and restore market confidence Reuters
This Week s Options Trades Looking for high yield covered call and high yield put selling trades
Volatility The VIX fell 17 89 this week ending the week at 15 47
High Dividend Stocks These high yield stocks go ex dividend next week NMM XOM SLB AHC CORR ENB SAF
Market Breadth 3 out of 30 DOW stocks rose this week vs 10 last week 84 of the S P 500 rose vs 20 last week
FOREX The USD rose vs most major currencies except the yen
Economic News The economy added 225K jobs in January higher than estimates while the Unemployment Rate rose to 3 6
The Labor Department s closely watched monthly employment report on Friday showed the economy created 514 000 fewer jobs between April 2018 and March 2019 than originally estimated This was the biggest downgrade to payrolls over a 12 month period since 2009 U S job growth accelerated in January with unseasonably mild temperatures boosting hiring in weather sensitive sectors indicating the economy could continue to grow moderately despite a deepening slump in business investment Reuters
U S factory activity unexpectedly rebounded in January after contracting for five straight months amid a surge in new orders offering hope that a prolonged slump in business investment has probably bottomed out The Institute for Supply Management ISM said on Monday its index of national factory activity increased to a reading of 50 9 last month the highest level since July from an upwardly revised 47 8 in December
The improvement in the ISM data likely reflects ebbing trade tensions between the United States and China Washington and Beijing signed a Phase 1 trade deal last month The deal however left in place U S tariffs on 360 billion of Chinese imports about two thirds of the total which economists say will remain a constraint on manufacturing Reuters
Week Ahead Highlights Q4 19 Earnings season starts to wind down with only 1 DOW stock reporting Cisco NASDAQ CSCO and 14 of the S P 500 reporting Fed Chief Powell will testify in DC
Next Week s US Economic Reports
Sectors Tech and Healthcare led this week Utilities lagged
Futures WTI Crude fell 2 37 this week finishing at 50 34 |
CSCO | Arista to pay 400 million to Cisco to resolve court fight | By Jan Wolfe Reuters Arista Networks Inc N ANET will pay 400 million to Cisco Systems Inc O CSCO to resolve a U S court fight between the two network equipment makers Arista said in a regulatory filing on Monday the day a jury trial in the dispute was scheduled to begin The settlement resolved U S lawsuits filed by Cisco alleging Arista copied its intellectual property The deal also called for Arista to drop a lawsuit alleging Cisco engaged in anticompetitive conduct to preserve its dominant share of the ethernet switch market The jury trial in that case was to have started on Monday in San Jose California The companies said in a joint statement that the settlement demonstrates their commitment to the principles of IP protection Founded in 2004 by former Cisco engineers Arista has emerged as a rival to Cisco in the multibillion dollar market for ethernet switches used in data centers Cisco sued Arista in 2014 alleging it brazenly copied software that runs switching products and other technology protected by patents and copyrights Arista has denied the allegations and accused Cisco of a smear campaign intended to stifle competition The U S International Trade Commission ruled in 2016 that Arista infringed three patents and recommended a limited ban on Arista s products that infringe the patents Arista said that in an effort to comply with the ITC s ruling it redesigned its technology to remove elements found to infringe Cisco s patents Arista scored a major victory of its own in 2016 when a U S jury said it owed no damages over Cisco s claims of copyright infringement The settlement came shortly before a trial in a 2016 antitrust lawsuit filed by Arista It alleged Cisco permitted rivals to use its interface technology and then later after they were locked into using it claimed copyright protection on it Cisco denied the allegations in court filings saying it never encouraged Arista to adopt its technology and that it acted reasonably in suing for copyright infringement The companies said in the joint statement that with limited exceptions no new litigation will be brought over patents or copyrights related to existing products for five years
The settlement does not resolve Cisco s appeal of the 2016 verdict that Arista was not liable for damages under U S copyright law A federal appeals court heard arguments relating to those claims in June and likely will issue a ruling later this year |
VZ | Yahoo admits some staff knew of massive hack | Some Yahoo NASDAQ YHOO employees were aware that a state sponsored hacker had breached its network shortly after a massive hack in 2014 casting a larger shadow over Verizon s NYSE VZ 4 8B deal to acquire the company Yahoo said in September that an investigation in August had uncovered the theft of personal information associated with at least a half billion accounts the largest data breach in history SEC Form 10 Q |
VZ | Verizon acquires info kiosk firm LQD WiFi | Verizon VZ 1 1 today acquired substantially all the assets of privately held LQD WiFi the latest in a string of bolt on acquisitions it s sought alongside its pursuit of Yahoo NASDAQ YHOO Financial terms weren t disclosed The goal of the acquisition is enhancing citizen engagement experiences using LQD s Palo technology hubs in urban spaces kiosks that provide information including community news info wayfinding public safety announcements transit updates and upcoming events along with free public Wi Fi LQD and Verizon are designing solutions for municipalities private developers academic institutions and entertainment venues the companies say |
VZ | Verizon Crowned The Fastest Network In U S In Latest Study | According to a latest study conducted byPCMag com Verizon Communications Inc NYSE VZ is the fastest high speed network operator among all other mobile networks in the U S
PCMag com conducted a speed test among the four major carriers in 30 U S cities with Samsung KS 005930 Galaxy S8 phones that ran a customized version of Ookla s Speedtest net app According to the test Verizon offers the most reliable and consistent high speed network overall
Verizon topped the list with a total score of 97 points whereas T Mobile US Inc NYSE T and AT T Inc NYSE T scored 96 and 93 points respectively With 74 points Sprint Corporation NYSE S finished last
The result indicates the strong competition among the carriers to improve their individual network performance Data speeds roughly double every two years jumping from 50 60 Mbps in 2014 to 120 Mbps in 2016 and reaching 200 Mbps in the latest study by PCMag com While Verizon has the fastest mobile network overall T Mobile offers quite the same performance at a comparably less cost Meanwhile AT T has the fastest average download speed in the nation However Sprint has the most inconsistent performance
Verizon to Deploy 5G Wireless Network
Wireless network standards are continuously evolving around the globe to offer faster speed Following significant deployment of 4G LTE networks LTE A Long Term Evolution Advanced wireless networks are gradually finding a solid foothold globally LTE A network is a major step toward the smooth transition from 4G to the upcoming 5G network standard
The wireless giant Verizon which was the first to deploy the 4G LTE Long Term Evolution network nationwide is initially testing equipment at 15GHz 28GHz 39GHz and 64GHz frequency bands for 5G network deployment The company is considering mobile hotspot and home based fixed wireless for initial deployment of the next generation 5G wireless networks in the U S in 2018 However a full phased 5G wireless network will be offered only in 2020
The company claims that its 5G network will provide a download speed of 1 Gbps gigabit per second which is 200 times the throughput of the currently available standard 4G LTE network Latency period of data delivery will be in single milliseconds Furthermore 5G technology is designed to be more power efficient than any other standard wireless networks available these days Therefore 5G enabled mobile devices are likely to last much longer than their 3G or 4G counterparts
The U S telecom industry has lately emerged as an intensely contested space where success thrives largely on technical superiority quality of services and scalability Thus in order to stay ahead of competitors existing players need to be constantly on their toes to introduce innovative products At this juncture we believe that Verizon s drive for 5G wireless network bodes well for future growth
Price Performance of Verizon
Over the past three months share price of Verizon declined 7 18 compared to the Zacks categorized U S industry s loss of 6 39 The company currently holds Zacks Rank 4 sell However AT T Sprint and T Mobile US are currently enjoying a Zacks Rank 3 Hold You can see
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VZ | Wireless Carriers Conflicting Views On Copper Retirement | U S wireless carriers CenturyLink Inc NYSE T Windstream Holdings Inc NASDAQ WIN Verizon Communications Inc NYSE VZ having conflicting opinions on the time period for copper retirement set by the FCC This comes at a time when the present FCC Federal Communications Commission Chairman Ajit Pai is looking to reverse the rules set in place by his predecessor Tom Wheeler In the Technology Transitions Order passed in 2015 the FCC stated the time frame for the shut down of copper facilities wherein competitive carriers and businesses were given six months and residential customers got three months ILECs incumbent local exchange carriers had to inform CLEC competitive local exchange carrier wholesale customers that use copper facilities to deliver voice and Ethernet over Copper EoC services to business customers about the shutdown At the meeting held in Apr 2017 FCC put forward its views to reform the pole attachment process and copper retirement the two issues expected to create regulatory barriers in the growth of wireline broadband services The commission further stated that these reforms will accelerate deployment of next generation networks and services by removing barriers to infrastructure investment at the federal state and local levels Conflicting Opinions on Copper Retirement Replacement SpanCenturyLink and Verizon two of the largest U S based ILECs claim that having a longer copper retirement period will delay their migrations from copper to fiber They have objected to the extension of the 90 day replacement time to 180 days CenturyLink claimed that such long durations sometimes to lead to work disruption and increase expenses The money could rather be used more productively on the deployment of new or upgraded broadband facilities Verizon stated that by migrating more of its customers from copper to fiber it has been able to reduce maintenance costs To date Verizon has filed notices with the FCC to retire copper at approximately 3 8 million locations across eight states This is part of a broader program that Verizon had started in 2012 targeting the so called chronic copper customers However Windstream seems to stand on the reverse side and is in favor of the longer duration of copper replacement Windstream is one such company that has been pioneering in copper retirement and special access services In Jun 2016 Windstream sought permission from the U S telecom regulator Federal Communications Commission FCC to discontinue its operator assisted legacy voice services across its ILEC incumbent local exchange carrier and CLEC competitive local exchange carrier territories This was followed by other companies such as AT T Inc NYSE T Verizon Communications and Level 3 Communications Inc NYSE T that had also applied to FCC for its permission to discontinue their legacy voice services Telecom service providers were found moving toward the IP based network as enterprise customers are increasingly opting for IP enabled cloud services Zacks Rank and Price PerformanceThe three companies in debate we have broadly stated above fall under the Zacks categorized industry Let s see how the companies price performance has varied with their sub industry and how they are ranked under the Zacks classification Over the past three months the share price of CenturyLink has climbed 4 40 while that of Verizon and Windstream has declined by 8 81 and 33 80 respectively The Zacks categorized Wireless National industry has declined by 8 03 over the said time frame While Verizon currently carries a Zacks Rank 4 Sell both Windstream and CenturyLink carry a Zacks Rank 3 Hold You can see CenturyLink is the leading regional wireline service provider of communications and data services nationwide and offers hosting cloud and information technology services in the U S Windstream is the leading local exchange carrier in the U S and Verizon is a domestic telecom behemoth Zacks Hidden TradesWhile we share many recommendations and ideas with the public certain moves are hidden from everyone but selected members of our portfolio services Would you like to peek behind the curtain today and view them Starting now for the next month I invite you to follow all Zacks private buys and sells in real time from value to momentum from stocks under 10 to ETF to option movers from insider trades to companies that are about to report positive earnings surprises we ve called them with 80 accuracy You can even look inside portfolios so exclusive that they are normally closed to new investors |
VZ | Verizon closes on 2 4B Fleetmatics acquisition | Verizon VZ 0 1 has closed on its 2 4B acquisition of Fleetmatics NYSE FLTX and has incorporated it into its Verizon Telematics business
The telecom had announced the 60 share acquisition on Aug 1 at what analysts saw as a healthy multiple
Fleetmatics won t be traded on the NYSE any further It brings 42 000 customers and about 826 000 subscribers to Verizon
With the close of this transaction Verizon Telematics is squarely positioned as the global leader in fleet and mobile resource management leveraging the combined strength of three world class platforms now serving every segment of the market says Verizon Telematics chief Andr s Irlando |
CSCO | Cisco Systems CSCO Stock Moves 0 17 What You Should Know | Cisco Systems NASDAQ CSCO closed the most recent trading day at 47 77 moving 0 17 from the previous trading session This change lagged the S P 500 s daily of 0 At the same time the Dow added 0 08 and the tech heavy Nasdaq lost 0 18
Heading into today shares of the seller of routers switches software and services had gained 5 77 over the past month outpacing the Computer and Technology sector s gain of 4 19 and the S P 500 s gain of 3 37 in that time
CSCO will be looking to display strength as it nears its next earnings release which is expected to be February 12 2020 In that report analysts expect CSCO to post earnings of 0 76 per share This would mark year over year growth of 4 11 Meanwhile our latest consensus estimate is calling for revenue of 11 98 billion down 3 74 from the prior year quarter
CSCO s full year Zacks Consensus Estimates are calling for earnings of 3 25 per share and revenue of 51 06 billion These results would represent year over year changes of 4 84 and 1 63 respectively
Investors should also note any recent changes to analyst estimates for CSCO These revisions typically reflect the latest short term business trends which can change frequently With this in mind we can consider positive estimate revisions a sign of optimism about the company s business outlook
Research indicates that these estimate revisions are directly correlated with near term share price momentum To benefit from this we have developed the Zacks Rank a proprietary model which takes these estimate changes into account and provides an actionable rating system
The Zacks Rank system which ranges from 1 Strong Buy to 5 Strong Sell has an impressive outside audited track record of outperformance with 1 stocks generating an average annual return of 25 since 1988 Within the past 30 days our consensus EPS projection remained stagnant CSCO is currently sporting a Zacks Rank of 3 Hold
In terms of valuation CSCO is currently trading at a Forward P E ratio of 14 71 This represents a discount compared to its industry s average Forward P E of 15 4
Investors should also note that CSCO has a PEG ratio of 2 51 right now This metric is used similarly to the famous P E ratio but the PEG ratio also takes into account the stock s expected earnings growth rate The Computer Networking industry currently had an average PEG ratio of 2 51 as of yesterday s close
The Computer Networking industry is part of the Computer and Technology sector This group has a Zacks Industry Rank of 101 putting it in the top 40 of all 250 industries
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors Our research shows that the top 50 rated industries outperform the bottom half by a factor of 2 to 1
Be sure to follow all of these stock moving metrics and many more on Zacks com |
CSCO | U S congressional Republicans seek legislative fix to family separation crisis | By Sarah N Lynch and Susan Cornwell WASHINGTON Reuters Congressional Republicans scrambled on Tuesday to craft legislation that would quell an outcry over the Trump administration s separation of immigrant parents and children at the U S Mexico border with an opinion poll showing most Americans oppose the policy The family separations and detentions of children highlighted by videos of youngsters in cages and an audiotape of wailing children have sparked anger at home from groups ranging from clergy to influential business leaders as well as condemnation abroad President Donald Trump arrived at Capitol Hill for a Tuesday evening meeting with House of Representatives Republicans to discuss their immigration legislation He is focused on winning congressional funding for a wall he has long wanted to build along America s southern border with Mexico a plan resisted by Democrats Trump who has made a tough stance on immigration a centerpiece of his presidency has staunchly defended his administration s actions He has cast blame for the family separations on Democrats although his fellow Republicans control both chambers in Congress and his own administration implemented the current policy of strict adherence to immigration laws On Tuesday the president tried again to blame Democrats for what he called loopholes in the law that require families detained for entering the country illegally either to be separated or released These are crippling loopholes that cause family separation which we don t want he said in remarks to the National Federation of Independent Business adding he wanted Congress to give him the legal authority to detain and deport families together Trump has sought to link an end to the family separations to passage of a wider bill on immigration prompting Democrats to accuse him of using children as hostages House Republicans were working on a revised draft of one version of an immigration overhaul that would prevent family separations in some cases for those attempting an illegal border crossing for the first time according to a House Republican aide The draft bill was seen just days ago as unlikely to pass but has gained support in the House But it was widely seen as dead on arrival in the Senate where minority Democrats could use procedural tactics to block it and where competing but far narrower legislation may be emerging from top Republicans CONTRARY TO AMERICAN VALUES Two of the top U S business groups the U S Chamber of Commerce and the Business Roundtable decried the separation policy on Tuesday and called for its immediate cessation This practice is cruel and contrary to American values Cisco Systems Inc O CSCO Chief Executive Chuck Robbins who chairs the group s immigration committee said in a statement Nearly 2 000 children were separated from their parents between mid April and the end of May The separations have been blasted by Democrats some Republicans medical professionals and rights activists They began after Attorney General Jeff Sessions announced in April that all immigrants apprehended while crossing the U S Mexico border illegally should be criminally prosecuted Parents who are referred by border agents for prosecution are held in federal jails while their children are moved into border shelter facilities under the custody of the Office of Refugee Resettlement a Department of Health and Human Services agency A Reuters Ipsos national opinion poll released on Tuesday showed fewer than one in three American adults supporting the policy The June 16 19 poll found that 28 percent of people polled supported the policy while 57 percent opposed it and the remaining 15 percent said they did not know Republicans were much more supportive than Democrats with 55 percent backing it versus just 12 percent of Democrats but they appeared less enthusiastic about the policy than they were about the president s overall record on immigration The images that have sparked widespread condemnation of children in wire cages are of a border patrol processing center in McAllen Texas LEGISLATIVE POSSIBILITIES A number of Republican senators called on Trump on Tuesday to allow families to stay together if they had crossed the border illegally and Senate leaders said their chamber could have legislation to address the family separations matter in a matter of days My hope is that this is not going to be something we re going to do over a matter of weeks and months but something we can do in a matter of days hopefully this week Senate Majority Whip John Cornyn said Senate Majority Leader Mitch McConnell echoed the new urgency We hope to reach out to the Democrats and see if we can get a result which means making a law and not just get into some kind of sparring back and forth that leads to no conclusion he said Top Democrats contended that Trump could change the policy with the stroke of a pen The president is trying set this trap in the public mind that somehow there is a law requiring him to do this and Congress can undo it said Senator Chris Van Hollen who visited a detention center in Brownsville Texas over the weekend We know this is a problem that was manufactured six weeks ago and we re seeing the awful results today Decrying internment camps Democrats and their supporters disrupted a U S congressional hearing on Tuesday about an FBI probe
With the sound of a young child crying in the background the top Democrat on the House of Representatives Judiciary Committee Jerrold Nadler broke from traditional protocol and started reading from a statement saying These migrant children are not animals His Republican colleagues tried to shout over him Out of order |
CSCO | Exclusive Russia s telecoms security push hits snag it needs foreign help | By Maria Kolomychenko and Polina Nikolskaya MOSCOW Reuters Russian telecoms operators will have to use foreign technology to comply with a law on storing data two industry sources with knowledge of the matter said even though Vladimir Putin told his government to ensure local companies produced the equipment The law requires operators to store the content of users phone calls and text messages for six months to aid the security services President Putin wanted home grown technology to be used to perform the task to boost the domestic tech industry and make telecoms systems less dependent on Western equipment But faced with a tight deadline to start storing the vast amounts of information and in the absence of suitable Russian hardware operators will have no choice but to use equipment made by foreign firms including Cisco O CSCO Hewlett Packard Enterprise N HPE and Huawei according to the sources In having to resort to buying in hardware from abroad Russia is encountering the same issues as other countries including the United States the tech sector is a multinational endeavor and developing sophisticated systems using only home grown gear is fraught with difficulties It s a good idea in theory to substitute imports but you need to make a realistic assessment of the capacity of Russian firms said Irina Levova of Moscow based independent think tank the Institute for the Study of the Internet The money spent implementing this law won t stay in the Russian economy but will end up abroad Adding to the problems besetting implementation of the law no Russian telecoms operator has the necessary infrastructure in place despite a July 1 deadline to start storing users data according to the two telecoms industry sources One of the sources is a senior manager at a Russian telecoms operator who declined to be named due to the sensitivity of the matter The other is the general director of Norsi Trans a company that procures hardware for telecoms operators Russia s ministry for digital development and communications did not respond to a request for comment about the use of foreign hardware or about whether telecoms firms have the necessary infrastructure in place A spokesman for Deputy Prime Minister Maxim Akimov responsible for telecoms referred questions to the ministry for industry and trade The ministry said Russian made storage equipment had been tested this year and that it would seek to help local manufacturers competing against foreign firms There is no legal requirement for telecom operators to use Russian made hardware to comply with the data rules which are part of package of anti terrorism legislation dubbed the Yarovaya laws after Irina Yarovaya one of the sponsors in parliament Of Russia s biggest operators Rostelecom Vimpelcom and MTS declined to comment about whether they would have to use foreign hardware to comply with the law while Megafon and Tele2 did not respond to requests for comment When asked whether they had the necessary infrastructure in place Vimpelcom Rostelecom and Megafon said their systems were still under development MTS and Tele2 Russia declined to comment PUTIN S INSTRUCTION After signing the Yarovaya legislation into law in July 2016 Putin instructed his government to ensure that production of the equipment to store users data took place within Russia This needs to be done swiftly We need to fill up the order books of our own firms especially since these are good guaranteed orders Putin said at the time at a meeting with government ministers A handful of Russian companies are approved by the domestic intelligence service the FSB to provide combined systems of software and hardware that gather and store the contents of phone calls and text messages But the systems they are designing in most cases use foreign hardware to store the data the two sources told Reuters Russia just does not have the capacity to produce in the quantities needed the equipment for storing data said the senior manager at a Russian telecoms operator Sergei Ovchinnikov general director of Norsi Trans one of the companies selling the data gathering and storage systems to telecoms firms also said foreign equipment was being used Ovchinnikov said Russian made hardware for storing such massive amounts of data were still at the testing stage He said his own company offered customers the option of using hardware from China s Huawei and other foreign firms to run home grown software As far as I know others producers of the technology to lawfully gather users data mainly use foreign solutions he added The leader in the small Russian sector for supplying these combined systems is a firm called Citadel which has a market share of about 50 percent according to telecoms industry executives followed by Norsi Trans with 20 30 percent A Citadel representative declined to disclose to Reuters where the company procures its hardware citing commercial secrecy The company tailors solutions to the needs of each client the representative said Asked about deals with Russian telecoms firms U S company Cisco said it was not in a position to comment on other organizations network infrastructure Huawei said it did not disclose commercial information about relations with its clients but it said it was looking into possible cooperation with companies producing equipment used for gathering users data under the law U S firm Hewlett Packard Enterprise HPE said company policy prevented it from commenting on contracts with customers SECURITY CONCERNS The Yarovaya laws were written by officials in Russia s Security Council according to four sources in the IT sector and the government The council which includes key ministers sets the strategic direction for Russia s security and defense policies The laws were written without consultation with technical specialists according to business lobby group the Russian Union of Industrialists and Entrepreneurs and the Institute for the Study of the Internet The Security Council did not immediately respond to a request for comment about how the laws were written A week after Putin signed the law Deputy Minister of Economic Development Oleg Fomichev said there was not enough data storage equipment available in Russia or abroad to meet the terms of the legislation The laws come against the background of a separate Kremlin drive to curb the use of foreign hardware and software in state digital infrastructure because it says such technology represents a cyber security risk Last year Moscow instructed government bodies and state companies not to buy foreign telecoms hardware Russia is not the only country to have such concerns A hostile foreign government counter intelligence officials say could adapt technology at the point of manufacture When it is sold to an overseas buyer the hostile government acquires a back door into the host country s digital networks The United States has pressured U S companies to not sell products made by China s Huawei or ZTE HK 0763 products saying they potentially could be used to spy on Americans They have also triggered concerns over Western companies such as Hewlett Packard Enterprise and SAP sharing their source code to the Russian authorities as a condition for access to the Russian market Asked if their equipment could be exploited by foreign intelligence services Cisco said it does not work with any government or customer to weaken its products for exploitation Huawei said its products underwent a Russian certification process that includes testing to ensure there are no undeclared capabilities or vulnerabilities HPE did not reply to Reuters questions on the topic |
VZ | 4G LTE Takes 28 Global Share User Count To Hit 2 5B In 17 | Long Term Evolution LTE popularly known as 4G LTE and the most sought after next generation 4G super fast wireless communications technology is gaining rapid momentum worldwide 4G wireless networks primarily aim to cope with the substantial rise in demand for high speed wireless data services and mobile video According to a recent research report published by Ovum for industry association 5G Americas the market share of LTE connections compared to all other mobile wireless technologies reached 28 at the end of the first quarter of 2017 marking a rise of 11 over a year Out of a total of 7 7 billion total cellular connections worldwide total LTE connections were 2 16 billion in the first quarter This marks the addition of 863 million new LTE users in a year with 40 year over year growth from the first quarter of 2016 LTE connections are estimated to increase up to 2 5 billion connections by the end of 2017 3 billion in 2018 and 4 2 billion connections in 2020 By 2021 end LTE connections should get to 4 7 billion forecast includes Machine to Machine and LTE global market share is projected to reach 53 Now let s take a look at how LTE connections have grown in different regions North America The LTE network has the highest penetration rate of 85 in North America with 308 5 million LTE connections reflecting the gain of 55 million LTE customers from the first quarter of 2016 to the first quarter of 2017 Western Europe has a LTE penetration rate of 37 while Oceania Eastern and South eastern Asia boast 67 In North America LTE penetration is expected to exceed 100 in 2018 By end 2021 LTE connections should reach 452 million including Machine to Machine and 5G connections will likely hit 11 million with a market share of nearly 44 of all global 5G connections Latin American and Caribbean In this region the LTE market share grew 100 from 9 7 to 20 on a year over year basis at the end of Mar 2017 LTE connections rose 16 5 in just one quarter The LTE penetration rate surpassed 20 regional penetration with 140 million LTE connections reflecting a rise of 71 2 million year over year By the end of 2017 LTE connections should reach 171 million inclusive of M2M and LTE global market share 24 By the end of 2021 LTE connections should scale to 449 million inclusive of Machine to Machine and LTE global market share should hold 58 Others Comparatively Central and Southern Asia saw the fastest year on year growth in the first quarter of 2017 with a rate of 1 804 while Africa Eastern Europe and the Middle East grew over 100 in the past twelve months Bottom LineEarlier research on 4G in the Americas had stated that the latest version of LTE A network which is popularly known as LTE Advanced Pro 3GPP Release 13 will be a major step toward the smooth transition from 4G to the upcoming 5G network standard In the U S all four national telecom operators namely Verizon Communications Inc NYSE VZ AT T Inc NYSE T T Mobile US Inc NYSE T and Sprint Corp NYSE S have deployed LTE A networks and are working toward the deployment and launch of 5G wireless network Among them Verizon seems to have the lead as evident from its initiatives to conduct 5G wireless network trials in 11 U S cities and plans to deploy its fixed wireless version in 2018 All the four stocks currently carry a Zacks Rank 3 Hold You can see 5G which marks a revolution in the field of communications is expected to accumulate connections starting 2020 By 2021 there should be 25 million 5G connections worldwide Moreover 5G mobile handsets will be available for sale in the market by 2020 following a broader rollout of the technology 3 Stocks to Ride a 588 Revenue ExplosionAt Zacks we re mostly focused on short term profit cycles but the hottest of all technology mega trends is starting to take hold By last year it was already generating 8 billion in global revenues By 2020 it s predicted to blast through the roof to 47 billion Famed investor Mark Cuban says it will produce the world s first trillionaires but that should still leave plenty of money for those who make the right trades early |
VZ | Infrastructure Stocks 101 Key Factors Investors Need To Know | One area of the investing landscape that is attracting plenty of attention these days is the world of infrastructure Thanks in part to a decrepit infrastructure profile here in the United States and hopes for massive spending to correct the situation many investors are trying to figure out which areas might be the best to play the possible trend And even if we don t see a big concentrated burst of spending here in the U S plenty will need to be doled out to keep things at the current level while there is a general need for more infrastructure assets around the globe in the near future too
To get some insight on this topic I recently did a Q A session with Chris Huemmer Vice President and Senior Investment Strategist for FlexShares What follows are my questions and his answers on a number of key infrastructure investing topics which should guide you through this industry So definitely check it out below if you want more information on this increasingly in focus area of the stock market world
Eric Dutram A lot of investors are focused on the infrastructure market these days thanks to hopes for a big Trump spending plan in this sector Is that going to be as great for the space as many are imagining And if it doesn t go through does the investment case fall apart for the infrastructure stocks
Chris Huemmer The demand for infrastructure is a global phenomenon and investors should avoid too heavy a focus on domestic news and conjecture spending on infrastructure projects increased globally over the last decade and many countries including the U S are trying to find ways to finance new projects and renovate existing assets
One of the newest tools available to countries and municipalities are listed markets which allow these entities to build renovate and maintain infrastructure assets Listed securities offer investors greater transparency and increased liquidity compared to other infrastructure alternatives
Eric And no matter what happens with Trump s plans how do infrastructure stocks fit into a portfolio Are they more of a lower risk high yield play or a growth opportunity for investors
Chris FlexShares is focused on firmly established infrastructure assets that offer investors an innovative asset class with potentially unique benefits Generally speaking since these assets are essential services that everyone needs they tend to have inelastic demand and historically good performance in down markets
In addition infrastructure companies operate in fairly monopolistic environments often with highly regulated pricing structures These conditions can create predictable expenditures and reliable cash flows that allow management to offer compelling yields with historically low equity correlations
Finally infrastructure is often considered a long term inflation hedge since regulated price increases are often tied to the consumer price index CPI or its local equivalent
Eric There are many types of infrastructure stocks is there a particular area that investors need to focus on right now
Chris One of the best practices an investor should remember when allocating to infrastructure is to diversify their exposures as much as possible We believe that broader exposure is better and opens up exciting investment areas like social infrastructure and communications both typically not available in legacy indices
By including social infrastructure i e government outsourcing such as health care facilities and post offices and communications areas such as cell towers data centers and wireless companies that own their networks investors can mitigate concentrated positions into segments like utilities and energy
Eric So the FlexShares ETF in this market the STOXX Global Broad Infrastructure Index Fund NFRA holds stocks from around the globe Perhaps you can discuss why some investors might want this holding profile which includes significant exposure outside of the U S
Chris Spending on infrastructure is increasing on a global scale so investors should consider how global holdings can help minimize the traditional risks associated with this asset class Infrastructure securities often are location specific capital intensive assets with long lifecycles it is often difficult or impossible to move these assets You cannot transport a power plant toll road or airport so they are susceptible to changes in the political and regulatory landscape in which they are based or unforeseen risks such as natural disasters that can impair the asset
The best way to counter these risks is to diversify the portfolio across different geographies sub sectors and revenue types This is one of the reasons we worked with STOXX to build not only a global index but a broad representation of sub sectors in each infrastructure segment
Eric Let s also discuss why certain segments are included in the ETF It seems heavy in energy but also communication stocks too The top three holdings include AT T T Verizon VZ and Comcast CMCSA Perhaps you can talk about how these sorts of equities fit in a broad infrastructure play
Chris People are often surprised to see certain telecommunication and cable companies categorized as infrastructure They view these companies as their cell phone or cable provider that can be replaced easily First it is important to note that not every telecom or cable company would qualify to be included in STOXX s definition What sets these companies apart is the amount of infrastructure assets each owns
Take Verizon for example they have 500 000 miles of wirelines over six continents 200 teleports in 90 countries another 200 datacenters and numerous satellites They just announced a deal to purchase 12 4 million miles of fiber optic cable a year to further build out their internet capabilities It is Verizon s ownership of these assets and importantly the revenue derived from them that qualifies the company as infrastructure
This is a great example of what we value about STOXX s expertise in the index design STOXX is able to use a bottoms up approach to identify the infrastructure assets owned by companies around the globe and tie those assets to revenue earned off of those assets That methodology enables the index to separate wireless tower and data centers incorporated as REITs from others that are not infrastructure companies
Eric The fund also has a solid yield current SEC Yields come in at around 2 6 is this segment one that could be troubled by additional interest rate hikes in the near future
Some areas of infrastructure can be sensitive to changes in interest rates which is why we advocate for a broad representation of the asset class This is another reason to pursue a global approach Monetary policy has remained accommodative in many international markets so a global strategy will not be as affected as a domestic only approach
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VZ | Why The Cuban Dream May Be Over For U S Telecom Operators | President Donald Trump recently announced that his administration will do away with many policies related to the communist state of Cuba taken by his predecessor Barak Obama As a result the previous regime s decision to normalize U S diplomatic and economic relations with Cuba which has been considerably strained since 1961 is under threat once again
Under Obama s administration new Cuban policy regulations approved by the Treasury and Commerce departments aided the U S telecom industry to gain initial exemptions from the existing embargo to invest in Cuba The newly developed truce between the two countries enabled these telecom operators to export equipment and services to Cuba Moreover they were permitted to establish the necessary infrastructure in the region for offering various telecom services including the Internet
Advantages to U S Telecom Operators
In Mar 2015 U S based IDT Corp had formed a joint venture with Cuba s state run Empresa de Telecomunicaciones de Cuba SA ETECSA to provide direct international long distance service In Sep 2015 Verizon Communications Inc NYSE VZ became the first U S telecom operator to offer roaming wireless services in Cuba
Meanwhile in Nov 2015 Sprint Corp NYSE S signed the first direct roaming wireless service agreement with ETECSA Earlier in Apr 2015 Sprint s prepaid service division Boost Mobile had launched an unlimited voice call and text message service plan between the U S and Cuba
In May 2016 T Mobile US Inc NYSE T had also signed an interconnection and roaming wireless service agreement with ETECSA Notably T Mobile US serves the maximum number of U S customers who are of Cuban descent Furthermore starting from Oct 18 2016 U S telecom giant AT T Inc NYSE T has been offering direct roaming mobile interconnection services to Cuba
All four stocks mentioned above currently carry a Zacks Rank 3 Hold You can see
Trump to Impose Business Restrictions
Trump is unlikely to reverse all the reforms taken by his predecessor However the current administration will go all the way out to limit commercial relations with the Cuban military s business and commerce wing Grupo de Administraci n Empresarial GAESA This conglomerate is managed by the Cuban military and is benefiting from the opening in U S Cuba relations
It has been widely considered that the Cuban military could be the beneficiary of increased American private investment According to Trump the money is used for more repression and to crush the peaceful democratic movement resulting in large scale human rights violations Even though the existing business deals have been spared the U S firms will face tougher restrictions to expand their businesses in Cuba in the future
Our View
We believe that the U S telecom operators may not reap any near term benefits from Cuban investments as the country is less developed at present and reels under highly restrictive government regulations However in the long term Cuba may become a boon for those telecom carriers who choose to operate in the country To sell products and services to 11 million untapped customers is a very lucrative and enticing opportunity
Further with the weakening of communism and its willingness to enter the economic as well as political mainstream Cuba is poised to become an attractive emerging market in the future Additionally the country s geographical proximity to the U S is a major positive for these telecom operators from the standpoint of cost of operations
Looking for Stocks with Skyrocketing Upside
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Ignited by new referendums and legislation this industry is expected to blast from an already robust 6 7 billion to 20 2 billion in 2021 Early investors stand to make a killing but you have to be ready to act and know just where to look |
VZ | AT T discussed takeover in meetings with Time Warner Bloomberg | Reuters Senior executives of telecommunications company AT T Inc N T and media conglomerate Time Warner Inc N TWX have discussed various business strategies including a possible merger in recent weeks Bloomberg reported on Thursday citing people it said were familiar with the matter Time Warner shares jumped 4 7 percent in regular trading and extended gains slightly after hours AT T shares slipped 1 8 percent Neither side has yet hired a financial adviser Bloomberg said Time Warner declined to comment AT T could not be immediately reached for comment Time Warner is attractive because of its premium cable channel HBO the CNN news network and other media assets AT T has been seeking to transform itself into a media powerhouse most recently buying satellite TV provider DIRECTV for 48 5 billion Time Warner Chief Executive Jeff Bewkes has not been willing to sell the company in the past The company rejected an 80 billion offer by Twenty First Century Fox Inc O FOXA in 2014 Talk of a deal comes as another potential bidder Verizon Communications Inc N VZ is busy with its purchase of internet company Yahoo Inc O YHOO which has been set back by news of a massive hacking breach into Yahoo customers email accounts
Time Warner has a market value of about 65 billion AT T has a market value of about 238 billion |
VZ | U S funds downbeat on AT T even before Time Warner deal | By Tim McLaughlin and Ross Kerber BOSTON Reuters Many actively managed U S mutual funds were cool toward AT T Inc NYSE T even before the telecom giant s planned 85 4 billion acquisition of Time Warner Inc NYSE TWX The chilly attitude from professional stock pickers partly explains the lackluster reception for AT T s planned takeover of Time Warner Large cap growth funds for example prefer tech companies whose operations require less capital than a regulated telecom operator like AT T Even a major benefit to owning AT T its juicy 5 percent plus dividend yield is a cause for investor concern as higher interest rates may make the return look less attractive There will be more options available for other higher yielding assets if rates are going up said Carrie Tallman director of research at Parsec Financial a North Carolina financial adviser that owns shares of AT T and Time Warner Approval of AT T s proposed takeover has provoked broad skepticism as the deal faces some of the toughest regulatory scrutiny in recent U S history of mergers and acquisitions We are committed to our dividend and to maintaining the financial flexibility for the board to consider future growth in the dividend AT T spokeswoman Emily Edmonds said in email On Saturday we announced we ll increase our quarterly dividend for the 33rd straight year even as we announced we ve secured a 40 billion bridge facility to finance our acquisition of Time Warner HUNT FOR YIELD Meanwhile seven out of AT T s 10 largest fund investors are passive index funds which are obligated to buy the stock because they track the S P 500 Index or other benchmarks that count AT T as a component Overall more than 600 index funds own nearly 13 percent of AT T s shares according to Thomson Reuters data That is more than actively managed income value and growth funds combined which hold about 8 percent of AT T shares By contrast those types of actively managed funds hold nearly 18 percent of the shares of rival Verizon Communications Inc NYSE VZ according to Thomson Reuters data Large cap growth portfolio managers like Fidelity Contrafund s Will Danoff see AT T as a regulated capital intensive slow growth company Danoff who oversees about 109 billion for the fund does not own any AT T shares telling investors in recent commentary he has largely avoided telecom stocks Only 21 out of 181 large cap growth funds tracked by Lipper Inc held AT T shares During the first half of this year not owning AT T hurt these funds relative performance to the S P 500 because the stock surged 26 percent Retail investors piled into AT T as the hunt for yield intensified against a backdrop of historically low interest rates AT T s current dividend yield is 5 3 percent on an annualized basis Matthew Benkendorf chief investment officer of Vontobel Asset Management a subadviser to Virtus mutual funds said low rates have undoubtedly driven increased interest in stocks like AT T But in recent months as higher U S interest rates appear more likely AT T shares have been under pressure The stock is off 14 percent in the past three months reflecting interest rate concerns and Saturday s announcement of the Time Warner deal Questions for investors now include whether Time Warner s TV and film assets can deliver meaningful growth for AT T and whether the new conglomerate will continue to satisfy an important base of investors with a healthy dividend payout
Vontobel s Benkendorf said an added wrinkle to those questions is the sustainability of the dividend AT T is paying That is a real question for them he said |
CSCO | Why Is Cisco CSCO Up 1 7 Since Last Earnings Report | A month has gone by since the last earnings report for Cisco Systems NASDAQ CSCO Shares have added about 1 7 in that time frame underperforming the S P 500
Will the recent positive trend continue leading up to its next earnings release or is Cisco due for a pullback Before we dive into how investors and analysts have reacted as of late let s take a quick look at the most recent earnings report in order to get a better handle on the important catalysts Cisco Beat Q1 Earnings Estimates Near Term Outlook GrimCisco Systems reported first quarter fiscal 2020 non GAAP earnings of 84 cents per share that beat the Zacks Consensus Estimate by 3 7 and grew 12 year over year Revenues climbed 0 7 year over year to 13 16 billion and surpassed the consensus estimate by 0 6 Excluding the Service Provider Video Software Solutions SPVSS business that was divested in second quarter fiscal 2019 revenues increased 2 year over year Acquisitions contributed 50 basis points bps to the top line Notably Cisco completed four acquisitions all in the applications space in the reported quarter Notably the company blamed sluggish macro economic conditions due to the U S China trade Brexit and others and a slowing China economy for the weakness in the service provider enterprise and commercial end markets Management expects growth in these markets to be muted in the near term Top Line DetailsProduct revenues 75 1 of total revenues were flat on a year over year basis at 9 88 billion Service revenues 25 of total revenues increased 3 1 to 3 28 billion driven by growth in software and solutions services Software subscriptions represent 71 of Cisco s software revenues Region wise Americas and EMEA revenues decreased 3 and 2 year over year respectively Moreover revenues from APJC decreased 9 Total emerging markets declined 13 and the BRICs plus Mexico fell 26 In terms of customer segments both enterprise and commercial revenues declined 5 each Moreover service provider revenues were down 13 However public sector revenues rose 6 Remaining performance obligations RPO at the end of the reported quarter were 24 9 billion up 11 The metric represents total committed non cancelable future revenues Total product orders were down 4 on a year over year basis Segment DetailsInfrastructure Platforms 57 3 of total revenues comprise Switching NGN routing Wireless and Data Center solutions Revenues fell 1 year over year to 7 54 billion While routing declined due to weakness in service provider Switching grew in both campus and data center end markets driven by strong demand for Catalyst 9000 family of switches and Nexus 9K solutions Additionally Wireless solution grew owing to Meraki Data Center witnessed solid growth led by HyperFlex Applications 11 4 of total revenues consist of the Collaboration portfolio of Unified Communications UC Conferencing and TelePresence IoT and application software businesses such as AppDynamics and Jasper Revenues increased 6 year over year to almost 1 50 billion driven by double digit growth at AppDynamics Security revenues 6 2 of revenues improved 22 to 815 million The growth can be attributed to solid demand witnessed by web security unified threat network security and advanced threat solutions Other Products segment contains service provider video cloud and system management and various emerging technology offerings Revenues plunged 85 to 26 million Operating DetailsNon GAAP gross margin expanded 210 bps from the year ago quarter to 65 9 On a non GAAP basis product gross margin expanded 290 bps but service gross margin contracted 30 bps Management stated that the gross margin benefited from increasing software content in the revenue mix Non GAAP operating expenses were 4 26 billion up 2 1 year over year As a percentage of revenues operating expenses increased 40 bps to 32 4 Non GAAP operating margin expanded 170 bps year over year to 33 6 Balance Sheet and Cash FlowAs of Oct 26 2019 Cisco s cash cash equivalents and investments balance were 28 billion down from 33 41 billion as of Jul 27 2019 Total debt as of Oct 26 was 18 50 billion compared with 24 67 billion as of Jul 27 The company generated 3 6 billion in cash flow from operations during the quarter under review In the fiscal first quarter Cisco returned 2 3 billion to shareholders through share buybacks and dividends The company has 12 7 billion remaining under its current share buyback program GuidanceFor second quarter fiscal 2020 revenues are expected to decline 3 5 on a year over year basis Non GAAP gross margin is expected in the range of 64 5 65 5 while operating margin is anticipated between 32 5 and 33 5 for the quarter Cisco expects pricing pressure in the server market to accelerate in the fiscal second quarter Moreover the company expects the gross margin to continue benefiting from lower DRAM prices in the server market Further lower operating expenses are expected to boost operating margin Non GAAP earnings are anticipated between 75 cents and 77 cents per share
How Have Estimates Been Moving Since Then
In the past month investors have witnessed a downward trend in estimates revision The consensus estimate has shifted 5 43 due to these changes
VGM Scores
At this time Cisco has a nice Growth Score of B though it is lagging a lot on the Momentum Score front with an F However the stock was allocated a grade of C on the value side putting it in the middle 20 for this investment strategy
Overall the stock has an aggregate VGM Score of C If you aren t focused on one strategy this score is the one you should be interested in
Outlook
Estimates have been broadly trending downward for the stock and the magnitude of these revisions indicates a downward shift Notably Cisco has a Zacks Rank 3 Hold We expect an in line return from the stock in the next few months |
CSCO | Baird still bullish on Cisco after solid Q3 report | Investors may not like the guidance in Cisco s NASDAQ CSCO Q3 earnings report shares are 3 5 lower and hit their lowest point in a month but Baird s Jayson Noland is sticking with bullishness The report was solid and reinforced a view that the company s increasingly well positioned for differentiation Noland writes He has an Outperform rating and reiterates a 51 price target now representing 17 upside Earnings call slides Earnings call transcript Now read |
CSCO | U S seeks to take control of infected routers from hackers | By Jim Finkle and Pavel Polityuk TORONTO KIEV Reuters The U S government said late on Wednesday that it would seek to wrestle hundreds of thousands of infected routers and storage devices from the control of hackers who security researchers warned were planning to use the botnet to attack Ukraine A federal judge in Pennsylvania gave the FBI permission to seize an internet domain that authorities charge a Russian hacking group known as Sofacy was using to control infected devices The order allows them to direct the devices to communicate with an FBI controlled server which will be used to query location to pass on to authorities around the globe who can remove malware from infected equipment This operation is the first step in the disruption of a botnet that provides the Sofacy actors with an array of capabilities that could be used for a variety of malicious purposes including intelligence gathering theft of valuable information destructive or disruptive attacks and the misattribution of such activities Assistant Attorney General for National Security John Demers said in a statement The U S government announced the takedown effort after Cisco Systems Inc O CSCO early on Wednesday released a report on the hacking campaign that it said targeted devices from Linksys MikroTik Netgear Inc O NTGR TP Link and QNAP https Cisco said the largest number of infections from the VPNFilter malware were in Ukraine which led it to believe Russia was planning an attack on that country Cisco shared technical details with the United States and Ukraine governments as well as rivals who sell security software hardware and services Ukraine s SBU state security service responded to the report by saying it showed Russia was readying a large scale cyber attack ahead of the Champions League soccer final due to be held in Kiev on Saturday Cyber security firms governments and corporate security teams closely monitor events in Ukraine where some of the world s most costly and destructive cyber attacks have been launched The Kremlin did not respond to a request for comment Russia has denied assertions by nations including Ukraine and Western cyber security firms that it is behind a massive global hacking program that has included attempts to harm Ukraine s economy and interfering in the 2016 U S presidential election Netgear and Linksys advised customers to make sure their routers are patched with the latest version of its firmware
MikroTik TP Link and QNAP could not be reached |
CSCO | FBI warns Russians hacked hundreds of thousands of routers | By Joseph Menn and Sarah N Lynch
Reuters The FBI warned on Friday that Russian computer hackers had compromised hundreds of thousands of home and office routers and could collect user information or shut down network traffic
The U S law enforcement agency urged the owners of many brands of routers to turn them off and on again and download updates from the manufacturer to protect themselves
The warning followed a court order Wednesday that allowed the FBI to seize a website that the hackers planned to use to give instructions to the routers Though that cut off malicious communications it still left the routers infected and Friday s warning was aimed at cleaning up those machines
Infections were detected in more than 50 countries though the primary target for further actions was probably Ukraine the site of many recent infections and a longtime cyberwarfare battleground
In obtaining the court order the Justice Department said the hackers involved were in a group called Sofacy that answered to the Russian government
Sofacy also known as APT28 and Fancy Bear has been blamed for many of the most dramatic Russian hacks including that of the Democratic National Committee during the 2016 U S presidential campaign
Earlier Cisco Systems Inc NASDAQ CSCO said the hacking campaign targeted devices from Belkin International s Linksys MikroTik Netgear Inc TP Link and QNAP
An FBI official told Reuters that the kinds of devices known to be affected by the hack were purchased by users at electronic stores or online
However the FBI was not ruling out the possibility that routers provided to customers by internet service companies could also be affected the official added
Cisco shared the technical details of its investigation with the U S and Ukrainian governments Western experts say Russia has conducted a series of attacks against companies in Ukraine for more than a year amid armed hostilities between the two countries causing hundreds of millions of dollars in damages and at least one electricity blackout
The Kremlin on Thursday denied the Ukrainian government s accusation that Russia was planning a cyber attack on Ukrainian state bodies and private companies ahead of the Champions League soccer final in Kiev on Saturday
The size and scope of the infrastructure by VPNFilter malware is significant the FBI said adding that it is capable of rendering peoples routers inoperable
It said the malware is hard to detect due to encryption and other tactics
The FBI urged people to reboot their devices to temporarily disrupt the malware and help identify infected devices
People should also consider disabling remote management settings changing passwords and upgrading to the latest firmware |
VZ | Will Verizon Digital Media Arm Cut Jobs Post Oath Taking | U S telecom behemoth Verizon Communications Inc s NYSE VZ to be formed digital media unit Oath is reportedly going to sack nearly 1 000 employees post the completion of Verizon Yahoo Inc NASDAQ YHOO deal worth 4 48 billion The dismissal accounts for less than 20 of the combined companies total employees This reported lay off is nothing unnatural given that both companies have a lot of redundancies including human resources finance marketing and general administration In Apr 2017 Verizon Communications unveiled its plans to unite AOL Inc with Yahoo s core internet assets under one umbrella Oath AOL Inc a major player in the digital content and online advertising space was acquired by Verizon in Jun 2015 The Verizon Yahoo deal is expected to be completed by the end of the current quarter of this year by Jun 30 2017 A special meeting for Yahoo s shareholders approval for the same is scheduled at today s date Oath is expected to be Verizon s new company overseeing Yahoo and AOL including more than 20 brands Verizon Communications pre estimates to have 1 3 billion users and 7 billion in sales from the combined AOL and Yahoo The new unit will be headed by AOL Chief Executive Officer CEO Tim Armstrong who will also become the CEO of Oath The CEO has chalked out plans to increase Oath s combined user base from 1 3 billion consumers to 2 billion and achieve sales in the range of 10 billion to 20 billion by 2020 Neither Verizon nor AOL commented anything related to the potential layoffs but acknowledged that changes will be there Price Performance and Zacks RankVerizon s plans of diversifying its business model from communications technology wireless industry Internet of Things IoT into digital media advertising and content creation distribution and deployment of high speed fiber network have been grabbing the attention of investors Despite such profitable and booming business prospects the price performance of Verizon is depressing Over the past three months share price of Verizon declined 5 66 compared with the Zacks categorized industry s fall of 4 63 We believe continued operation in the saturated and competitive wireless market expenses related to promotions and discounts an intensely competitive video market and persistent losses in access lines in its wireline segment might have caused the company s below par performance Currently Verizon Communications is a Zacks Rank 3 Hold stock You can see Latest Updates on Verizon Verizon Communications has inked a managed services deal with Ericsson NASDAQ ERIC wherein the latter will be deploying Verizon s Managed Software Defined Wide Area Network SD WAN to transform its corporate IT environment toward a virtual services implementation Meanwhile Verizon Communications is also reportedly considering a strategic option to invest 100 million in online music streamer Pandora Media Inc NYSE P 3 Top Picks to Ride the Hottest Tech Trend Zacks just released a Special Report to guide you through a space that has already begun to transform our entire economy Last year it was generating 8 billion in global revenues By 2020 it s predicted to blast through the roof to 47 billion Famed investor Mark Cuban says it will produce the world s first trillionaires but that should still leave plenty of money for those who make the right trades early |
VZ | Hilton Worldwide HLT To Join Prestigious S P 500 Benchmark | Hotel company Hilton Worldwide Holdings Inc NYSE HLT is scheduled to join the coveted S P 500 index prior to the open of trading on Jun 19 Notably Hilton will be replacing Yahoo Inc NASDAQ YHOO which is expected to convert to a publicly traded non diversified closed end management investment company that is ineligible for inclusion in the S P 500 In fact Yahoo is expected to sell its operational business to another S P 500 constituent Verizon Communications Inc NYSE VZ Consequent to the news release on Jun 9 shares of Hilton have gained nearly 2 Notably Hilton shall be added to the S P 500 GICS Global Industry Classification Standard Hotels Resorts Cruise Lines Sub Industry index With a portfolio of 500 leading companies that have roughly 80 coverage of the available market capitalization the S P 500 is an imperative metric for the U S equities In fact the index is considered to be the best single gauge for large cap U S equities It could thus be a great boost for those who are already invested in Hilton Moreover in January Hilton completed the spin offs of Park Hotels Resorts Inc NYSE PK and Hilton Grand Vacations Inc NYSE HGV resulting in three independent publicly traded companies On the same day the company effected the previously announced 1 for 3 reverse stock split All these changes are expected to make Hilton a fee based capital efficient and resilient business having enormous growth potential worldwide Post the split on Jan 4 the company s shares have rallied 13 5 while the S P 500 market recorded a gain of 7 6 Notably last quarter the company reported robust results with both earnings and sales beating the Zacks Consensus Estimate Also system wide comparable RevPAR Revenue Per Available Room increased 3 0 year over year in the quarter on a currency neutral basis We expect Hilton s geographic exposure in the U S solid transient business as well as its improving group business trends to continue to drive RevPAR going ahead Further the company s performance is expected to be buoyed by strong unit development and tremendous growth in loyalty program given its scale size industry leading brands and commercial platform However Hilton s international presence makes it vulnerable to lingering political uncertainties and economic downturns in certain parts of the world Meanwhile unfavorable currency translations could also continue to hurt the top line Despite the headwinds we believe this Zacks Rank 2 Buy company s addition to the S P 500 is a major positive which should aid in enhancing share price returns You can see Zacks 2017 IPO Watch ListBefore looking into the stocks mentioned above you may want to get a head start on potential tech IPOs that are popping up on Zacks radar Imagine being in the first wave of investors to jump on a company with almost unlimited growth potential This Special Report gives you the current scoop on 5 that may go public at any time One has driven from 0 to a 68 billion valuation in 8 years Four others are a little less obvious but already show jaw dropping growth |
VZ | Yahoo not to hold quarterly earnings call or webcast | Reuters Yahoo NASDAQ YHOO Inc said on Friday that it would not hold a call or webcast when it reports third quarter results on Tuesday citing its pending 4 83 billion deal with Verizon Communications Inc NYSE VZ Last month Yahoo disclosed a massive data breach in 2014 that affected at least 500 million of its email accounts Verizon s general counsel said on Thursday that the company has a reasonable basis to believe the hack represents a material impact that could allow it to withdraw from the deal to buy the company Verizon reports results on Oct 20
Companies that are being acquired do not typically hold earnings calls with analysts |
VZ | Yahoo profit beats Wall St some analysts worry over effect of hack | By Deborah M Todd SAN FRANCISCO Reuters Yahoo NASDAQ YHOO Inc reported better than expected quarterly adjusted profit on Tuesday a boost for the beleaguered company whose deal to sell its core business to Verizon Communications Inc NYSE VZ has been shaken by a massive data breach Verizon s general counsel said last week that the hack which affected at least 500 million email accounts in 2014 could have a material impact possibly allowing Verizon to withdraw from the 4 83 billion deal Tuesday s results provided at least an initial indication that the data breach has not led to a quick exodus of Yahoo customers as some had feared Customer trends showed growth in pageviews and email usage Yahoo said Still analysts were split on whether the results dispelled doubts about the deal going through Yahoo said in a filing with securities regulators shortly before the breach was disclosed that it knew of no cyber risks raising questions about whether Verizon was informed of the breach in a timely fashion JMP Securities analyst Ronald Josey said it was too early to tell if the breach would cause lasting damage and called customer trends encouraging The message here is email and messaging is a very sticky product and people want to get to their messages said Josey But Fatemeh Khatibloo a security analyst with Forrester Research said the uptick in pageviews and email usage could be the result of 500 million people trying to figure out if they re exposed Any loss of users in the future lawsuits related to the breach and a pending Federal Communications Commission vote that could limit how telecommunications companies can use customer data may encourage Verizon to try and back out of the deal said Khatibloo However Scott Kessler an analyst with CFRA Research said the fact that Yahoo did not see an immediate decline in users was a sign the breach may not be a material adverse change that would affect the Verizon deal The bottom line here is from a fundamental operational and financial perspective it doesn t seem like much has changed at the company over the last quarter he said Legal experts have said Verizon would have to clear a high hurdle to prove that the breach amounted to a material adverse change that would allow it to pull out of the deal REVENUE CHALLENGES Another positive sign for Yahoo was that revenue from Mavens the mobile video native and social advertising units that Chief Executive Marissa Mayer touts as its emerging businesses rose 24 2 percent to 524 million Still the business showed continuing declines in major revenue categories Gross search revenue fell 14 1 percent to 752 5 million Total revenue rose 6 5 percent to 1 31 billion just beating the average analyst estimate of 1 30 billion according to Thomson Reuters I B E S But after deducting fees paid to partner websites revenue fell to 857 7 million from 1 billion Yahoo said on Friday it would not hold a call or webcast after the release of the results citing the Verizon deal Analysts at Needham Co said in a note on Tuesday that decision troubled them given doubts cast over the Verizon deal by the data hack and they cut their rating on Yahoo to hold from buy Yahoo s shares were up about 1 3 percent in extended trading after the close on Tuesday For the third quarter ended Sept 30 net income attributable to Yahoo rose to 162 8 million or 17 cents per share from 76 3 million or 8 cents per share a year earlier Excluding some items the company earned 20 cents per share beating analysts average estimate of 14 cents Verizon plans to combine Yahoo s search email and messenger assets as well as advertising technology tools with its AOL unit which it bought last year for 4 4 billion The deal would transform Yahoo into a holding company with a 15 percent stake in Chinese e commerce company Alibaba NYSE BABA Group Holding Ltd and a 35 5 percent interest in Yahoo Japan Corp as well as Yahoo s convertible notes certain minority investments and its non core patents
The deal is expected to close in early 2017 after which Yahoo plans to change its name and become a publicly traded investment company |
CSCO | Cisco Sinks Market Cycles Point To Plenty Of Pain Ahead | Summary
Cisco NASDAQ CSCO dropped 7 on Thursday after the company posted good earnings but missed Wall Street expectations on guidance
Based on its market cycles we believe the stock has broken down and that the coming cycle is going to be rough
The company reported earnings per share of 0 84 and total revenue of 13 2 billion compared to analyst estimates of 0 81 and 13 1 billion Looking ahead management expects revenue of 0 75 0 77 compared to the 0 79 consensus
CEO Chuck Robbins explained that It feels like there is a bit of a pause We saw things like conversion rates on our pipeline were lower than normal which says that things didn t close the way we would have historically seen it
Our approach to stock analysis uses market cycles to project price action CSCO appears to be in the declining phase of its current cycle If that is so then the stock has broken down from the low at which it started the cycle This is quite early in the cycle giving it plenty of time to decline Our target is 40 by March
For the Best and Worst Stocks of the Week check out the askSlim Market Week show every Friday on our |
CSCO | Cisco s tepid forecast clouds quarterly beat shares fall | By Laharee Chatterjee Reuters Network gear maker Cisco Systems Inc O CSCO reported third quarter profit and revenue that topped analysts estimates on Wednesday but shares fell 4 percent after dour current quarter forecasts indicated that the transition to a software focused business remained a work in progress Cisco s stock has climbed 18 percent and is the second biggest gainer among Dow components this year as investors bet on the company s turnaround under Chief Executive Officer Chuck Robbins Since taking the helm in July 2015 Robbins has steered the hardware giant away from its traditional business of supplying switches and routers and into newer growth areas such as cloud Internet of things and cyber security Revenue in the company s closely watched security business which offers firewall protection and breach detection systems rose 11 percent to 583 million in the third quarter That missed estimate of 584 million from six analysts polled by Thomson Reuters I B E S The division s revenue however topped estimates of 573 6 million according to data analytics firm FactSet Cisco s revenue from its services business also missed estimates Revenue from the business which provides technical and internet network support rose 3 percent to 3 16 billion but fell short of estimate of 3 24 billion according to Thomson Reuters I B E S Like other old smoke stack tech companies MSFT INTC ORCL this has been a somewhat of a slow process said Dan Morgan portfolio manager at Synovus Trust Company who owns 362 980 shares of Cisco Robbins in a post earnings call with Reuters said he was confident about the transition The business model transition that we have been giving metrics on since I became the CEO continue to move in the right direction he said Cisco forecast fourth quarter profit of 68 cents to 70 cents per share while analysts were expecting 69 cents according to Thomson Reuters I B E S The company expects revenue growth of 4 percent to 6 percent from a year earlier which implies a range of between 12 62 billion and 12 86 billion Analysts were expecting revenue of 12 73 billion Cisco needs to continue to aggressively pursue acquisition while also showing that it is utilizing acquired technologies to advance its own portfolio and support growth said CFRA Research analyst Keith Snyder Net income rose to 2 69 billion or 56 cents per share in the third quarter ended April 28 from 2 52 billion or 50 cents per share a year earlier On an adjusted basis the company earned 66 cents per share Total revenue rose 4 4 percent to 12 46 billion
Analysts on average had expected a profit of 65 cents per share and revenue of 12 43 billion |
VZ | Ericsson ERIC To Deploy Verizon s VZ Managed SD WAN | U S telecom behemoth Verizon Communications Inc NYSE VZ has inked a managed services deal with Ericsson BS ERICAs NASDAQ ERIC wherein the latter will be deploying Verizon s Managed Software Defined Wide Area Network SD WAN for its corporate IT including virtualized security services and Managed Enterprise Radio Access Network E RAN solutions This should help Ericsson in the transformation of its corporate IT environment toward a virtual services implementation
As per the deal Ericsson will utilize virtualized network functions VNFs as a utility in a pay as you go model This model will be based on usage and will expand the global reach of the company s corporate IT infrastructure using Verizon s Global IP network for public and private networking solutions
The use of Verizon s software defined services will help Ericsson in the automation of operations maintenance of application performance and enabling on demand implementation of WAN policies From an SD WAN perspective Ericsson s technology helps Verizon in the proper management and organization of hybrid client networks in real time
Verizon s Managed SD WAN and Managed E RAN solutions are part of the its network as a service NaaS offerings The services offered are an outcome of Ericsson s Dynamic Orchestration Closed loop service assurance and Automated Validation and Onboarding Platform
Currently Ericsson carries a Zacks Rank 5 Strong Sell while Verizon Communications is a Zacks Rank 3 Hold stock You can see
What s a Software Defined Wide Area Network SD WAN
The software defined wide area network SD WAN is a specific application of software defined networking SDN technology applied to WAN connections which are used to connect enterprise networks including branch offices and data centers over large geographic distances
SD WAN has the advantage of removing potentially expensive routing hardware by provisioning connectivity and services via the cloud The main goal of SD WAN technology is to deliver a business class secure and simple cloud enabled WAN connection with as much open and software based technology as possible
A key application of an SD WAN is to allow companies to build higher performance WANs using lower cost internet access enabling businesses to partially or wholly replace more expensive private WAN connection technologies such as MPLS Multiprotocol Label Switching
Bottom Line
Ericsson is a long standing and major vendor partner for Verizon Communications Apart from focusing on 5G wireless network field trials and Internet of Things IoT associations the two companies are working together to uplift Verizon s Network and Technology division
Meanwhile where the SD WAN industry is expected to witness a rapid growth of around 200 in the next 12 months we believe the idea of highlighting Ericsson as one of its SD WAN customers marks a strategic move on Verizon s part in increasing its enterprise customer base
To deliver SD WAN Verizon also uses software from Viptela and Cisco Systems Inc NASDAQ CSCO Verizon Communications claims to have over 90 active SD WAN implementations and 16 full scale deployments It also has 30 participants taking part in a universal CPE program trial
Two other major wireless carriers Sprint Corp NYSE S and AT T Inc NYSE T also launched their software defined wide area network SD WAN services
Price Performance
Over the past three months share price of Verizon declined 7 26 compared with the Zacks categorized industry s fall of 5 22
Meanwhile share price of Ericsson moved up 14 18 outshining the Zacks categorized industry s 8 64 growth in the same time frame
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VZ | Samsung halts Note 7 production after new fire scare source | By Se Young Lee SEOUL Reuters Samsung Electronics KS 005930 Co Ltd has suspended production of its flagship Galaxy Note 7 smartphones a source said on Monday after reports of fires in replacement devices added to the tech giant s worst ever recall crisis Top U S and Australian carriers also suspended sales or exchanges of Note 7s while major airlines reiterated bans on passengers using the phones after smoke from a replacement device forced the evacuation of a passenger plane in the United States last week Fires in phones that were meant to replace devices that had been recalled because of their propensity to explode would be a disaster for the world s largest smartphone maker suggesting it had failed to fix a problem that has already hurt its brand and threatens to derail a recovery in its mobile business If the Note 7 is allowed to continue it could lead to the single greatest act of brand self destruction in the history of modern technology said Eric Schiffer brand strategy expert and chairman of Reputation Management Consultants Samsung needs to take a giant write down and cast the Note 7 to the engineering hall of shame next to the Ford Pinto In a regulatory filing Samsung said it was adjusting shipments of Note 7s to allow for inspections and stronger quality control due to some devices catching fire It did not comment on the production halt or the cause of the fires while the source who declined to be identified because they were not authorized to speak to the media did not explain whether specific problems had been identified or when production was halted A Samsung official told Reuters earlier on Monday it was investigating reports of heat damage issues and would take immediate action to fix any problems in line with measures approved by the U S Consumer Product Safety Commission On Sept 2 Samsung announced a global recall of 2 5 million Note 7s due to faulty batteries which caused some of the phones to catch fire It ordered new batteries from another supplier and started shipping replacements to customers just two weeks later But similar problems arose with a replacement Note 7 on Oct 5 which began smoking inside a Southwest Airline flight in the United States Samsung shares which have rebounded after an initial sell off on the recall closed down 1 5 percent compared with a 0 2 percent rise for the broader market I think the cleanest thing to do is to give up on the Note 7 said HDC Asset Management fund manager Park Jung hoon whose fund owns Samsung shares What s scary is that this is causing people to repeatedly doubt Samsung s fundamental capabilities so it s important for Samsung to get past this issue quickly Samsung s recall crisis has coincided with pressure from one of the world s most aggressive hedge funds Elliott Management to split the company and pay out 27 billion in a special dividend AIRPLANE BAN Major airlines air regulators and airport authorities reiterated bans on passengers using the phones saying Note 7s should not be powered up or charged on board A South Korean government agency said it was monitoring reports of the fires and warned that the recalled Note 7 devices should not be used or charged inside airplanes Mobile carriers also took action Verizon Communications Inc NYSE VZ the No 1 U S wireless carrier said on Monday it would suspend the exchange of replacement Note 7s and would allow customers to exchange the replacement for another smartphone AT T Inc NYSE T the No 2 U S wireless carrier said earlier that it would stop issuing replacement Note 7s and would let customers with a recalled Note 7 exchange that device for another Samsung smartphone or other smartphone of their choice No 3 wireless carrier T Mobile US Inc also said it was temporarily halting sales of new Note 7s as well as exchanges while Samsung investigated multiple reports of issues with its flagship device T Mobile offered customers who brought in their Note 7s a 25 credit on their phone bill Australia s largest carrier Telstra Corp said Samsung had paused supply of new Note 7s while fellow Australian carriers Optus and Vodafone LON VOD said they had stopped issuing new Note 7s
South Korea s two largest mobile carriers SK Telecom and KT Corp said they were monitoring the situation |
VZ | Yahoo email scan report raises rights concerns U N expert | FRANKFURT Reuters Serious human rights concerns have been raised by a Reuters report that Yahoo O YHOO had scanned the emails of hundreds of millions of users at the request of a U S intelligence service a United Nations human rights advocate said on Friday
Government monitoring of digital communications when conducted as described in recent reports could undermine the privacy that individuals depend on in order to seek receive and impart information online David Kaye U N Special Rapporteur on the right to freedom of opinion and expression said in a statement
Kaye an independent expert was appointed by the U N s Human Rights Council in 2014 to examine and report on specific situations or human rights issues He was responding to an exclusive report on Tuesday that Yahoo had complied with a secretive U S government request to scan emails in 2015
Yahoo based in Sunnyvale California responded that the report was misleading but declined to specify the reasons USN
The revelations rekindled a long running debate in the United States over the proper balance between digital privacy and national security and has sparked criticism from privacy and human rights officials in Europe
Yahoo agreed in July to be sold to U S telecoms company Verizon Communications N VZ in a deal worth 4 8 billion |
VZ | Yahoo disables automatic email forwarding feature AP | Reuters Yahoo NASDAQ YHOO Inc disabled automatic email forwarding at the beginning of the month the Associated Press reported citing several users While those who have set up forwarding in the past are unaffected users who would want to leave following recent hacking and surveillance revelations are struggling to shift to rival services the AP reported on Monday The company has been under scrutiny from investors after disclosing last month that at least 500 million user accounts were stolen from its network in 2014 Reuters reported last week citing sources that Yahoo last year secretly built a custom software program to search all of its customers incoming emails for specific information provided by U S intelligence officials a move that raised a lot of human rights concerns The AP said that several users were leaving or had already left the service because of the negative headlines Yahoo which agreed to be bought by U S telecoms company Verizon Communications Inc NYSE VZ for 4 83 billion in July could not be immediately reached for comment
The company s website says that the automatic email forwarding feature is under development and has been temporarily disabled |
VZ | Civil liberties group urges Verizon to shore up Yahoo user protection | By Joseph Menn SAN FRANCISCO Reuters An international civil liberties group that has worked with web companies on human rights and surveillance issues is asking Verizon Communications Inc NYSE VZ to examine a secret email scanning program run by its acquisition target Yahoo NASDAQ YHOO Inc and improve on its user protection record Access Now an international digital rights group wrote to Verizon on Tuesday about scanning conducted in 2015 at the behest of U S intelligence authorities and first reported by Reuters last week Federal officials said the search was at the direction of the Foreign Intelligence Surveillance Court and sought emails containing a specific set of characters associated with a terror group backed by another government Access Now pressed the communications carrier to make sure that Yahoo does more to protect user data keeps security staff informed of relevant policy decisions and keeps its commitments to surveillance reform We have an ongoing and constructive engagement with Access Now and will review their recommendations and consider them carefully Verizon said in an emailed statement The letter provided to Reuters in advance of its publication on Wednesday on the group s website points to mixed feelings among privacy and security experts about the pending 4 8 billion acquisition Yahoo has in past years enjoyed a good reputation for protecting users from government pressure lobbying for restrictions on broad searches and appealing warrantless inquiries from the secret U S intelligence court Like other major telecommunications carriers Verizon has been seen by privacy experts as more closely aligned with the interests of government regulators law enforcement and intelligence agencies But Verizon has begun publishing a transparency report of the sort pioneered by web companies quantifying and explaining government information requests and it has also fought some data demands in court Verizon has also observed that Yahoo will give it a more global customer base with different expectations They seem to recognize that this is kind of an opportunity to build on the privacy and security commitments that I think are essential when we talk about expanding globally said Drew Mitnick policy counsel at Access Now Among those who have faulted the Yahoo search or the way it was conducted are members of both houses of Congress the United Nations special rapporteur on freedom of expression Ireland s Data Protection Commissioner and the BEUC an umbrella group of Europeans consumer groups Yahoo declined to comment about Access Now s request The company s rights policies are being addressed in the integration process according to a person familiar with the matter |
VZ | Verizon closing call centers in five U S states 3 200 jobs affected | By Malathi Nayak Reuters Verizon Communications Inc N VZ said on Thursday it plans to close call centers in five states including its home state of New York as the No 1 wireless company trims head count and reorganizes operations in a saturated wireless market The move which will affect 3 200 workers is a part of Verizon s effort to consolidate customer service operations across the United States The company which has a workforce of about 162 700 recently agreed to buy Yahoo Inc O YHOO for 4 8 billion as it looks to tap new revenue in areas such as digital media and advertising We are realigning our real estate portfolio and relocating these centers into other centers where we have extra capacity Verizon spokeswoman Kim Ancin said Verizon is offering affected employees jobs in call centers in other states she said The consolidation involves Verizon call centers near Rochester and Orangeburg New York Bangor Maine Lincoln Nebraska Wallingford and Meriden Connecticut and Rancho Cordoba California the company said The proposed call center closures which will impact 850 jobs in New York drew a testy response from the office of New York s governor Andrew Cuomo This is an egregious example of corporate abuse among the worst we have witnessed during the six years of this administration Rich Azzopardi a spokesman for the governor said in a statement Verizon s call center closures will result in job losses for hard working New Yorkers he added Employees who choose to move to other call centers which handle sales and billing and help customers with technical problems will be given relocation packages starting at 10 000 Ancin said Those who leave the company will be given a severance package outplacement resources and other support In April nearly 40 000 employees of the wireline business which includes FiOS Internet telephone and TV services represented by unions went on strike after reaching an impasse in talks over a new labor contract Sticking points included the relocation of employees and offshoring of call center jobs The strike which was one of the largest in recent years in the United States drew support from Democratic U S Presidential candidate Hillary Clinton A new deal was reached in May and striking wireline employees got back to work in June
The Verizon wireless call center closures in five states involve employees who are not represented by unions Ancin said |
CSCO | Cisco Systems CSCO Q1 Earnings And Revenues Beat Estimates | Cisco Systems NASDAQ CSCO came out with quarterly earnings of 0 84 per share beating the Zacks Consensus Estimate of 0 81 per share This compares to earnings of 0 75 per share a year ago These figures are adjusted for non recurring items
This quarterly report represents an earnings surprise of 3 70 A quarter ago it was expected that this seller of routers switches software and services would post earnings of 0 82 per share when it actually produced earnings of 0 83 delivering a surprise of 1 22
Over the last four quarters the company has surpassed consensus EPS estimates four times
Cisco which belongs to the Zacks Computer Networking industry posted revenues of 13 16 billion for the quarter ended October 2019 surpassing the Zacks Consensus Estimate by 0 64 This compares to year ago revenues of 13 07 billion The company has topped consensus revenue estimates four times over the last four quarters
The sustainability of the stock s immediate price movement based on the recently released numbers and future earnings expectations will mostly depend on management s commentary on the earnings call
Cisco shares have added about 11 6 since the beginning of the year versus the S P 500 s gain of 23 3
What s Next for Cisco
While Cisco has underperformed the market so far this year the question that comes to investors minds is what s next for the stock
There are no easy answers to this key question but one reliable measure that can help investors address this is the company s earnings outlook Not only does this include current consensus earnings expectations for the coming quarter s but also how these expectations have changed lately
Empirical research shows a strong correlation between near term stock movements and trends in earnings estimate revisions Investors can track such revisions by themselves or rely on a tried and tested rating tool like the Zacks Rank which has an impressive track record of harnessing the power of earnings estimate revisions
Ahead of this earnings release the estimate revisions trend for Cisco was unfavorable While the magnitude and direction of estimate revisions could change following the company s just released earnings report the current status translates into a Zacks Rank 4 Sell for the stock So the shares are expected to underperform the market in the near future You can see the complete list of today s Zacks 1 Rank Strong Buy stocks here
It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead The current consensus EPS estimate is 0 80 on 12 78 billion in revenues for the coming quarter and 3 33 on 52 90 billion in revenues for the current fiscal year
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well In terms of the Zacks Industry Rank Computer Networking is currently in the bottom 10 of the 250 plus Zacks industries Our research shows that the top 50 of the Zacks ranked industries outperform the bottom 50 by a factor of more than 2 to 1 |
CSCO | Chart Of The Day Cisco s Supply Demand Balance Suggests Weak Earnings Ahead | Cisco Systems NASDAQ CSCO is scheduled to release corporate results after market close today The forecast calls for EPS of 0 81 and revenue of 13 07 billion slightly lower than the previous quarter s 0 83 EPS and 13 43 billion revenue but up from the same quarter last year 0 75 and flat on the revenue
In the last 25 quarters the company missed once on earnings in August 2013 and three times on revenue So will the company maintain its record of strong earnings today We bet against it The supply demand balance suggests price weakness Informed money may be trying to tell us something through the distribution of the company s shares
The stock plunged more than 8 on Aug 15 after the company revealed that its Chinese business had plummeted 25 creating a huge falling breakaway gap that topped out the stock Since then the price has pulled back found resistance by the gap and fallen more than 9 while registering another low in the downward trend since the July high The stock rebounded from the Oct 10 low by 7 4 more than 4 below the resistance above the gap and more than 2 from the September high driven by demand attempting to challenge that supply line
As things stand the pattern that emerges since the breakaway gap in mid August is a continuation H S pattern since August A downside breakout below the neckline s 45 level would imply a break below the long term uptrend line since 2016 and a retesting of the 40 support since March 2018 And if that level breaks it will complete a massive H S top implying a revisit to the 2016 lows in the 20 area
Volume has been drying up as have both the short term H S continuation pattern and the long term H S top in the making The 50 DMA crossed below the 200 DMA triggering the much feared death cross and the 100 DMA crossed below the 200 DMA amid the current rebound none of which are encouraging signs
To recap the price is currently developing a continuation pattern since August which if it completes would suggest it may fall below the long term uptrend line and target the 40 support If this support is broken it would imply a loss of close to 50
Trading Strategies
Conservative traders would wait for the completion of the massive H S top since March 2018
Moderate traders would risk a short once the current smaller H S completes
Aggressive traders may short now providing they understand and can withstand the risk
Trade Sample
Entry 49
Stop Loss 51
Risk 2
Target 43
Reward 6
Risk Reward Ratio 1 3 |
CSCO | Cisco s Bleak Guidance Pus These ETFs In Focus | After the closing bell on Wednesday Nov 13 tech prime Cisco Systems NASDAQ CSCO dampened investors mood when it reported first quarter fiscal 2020 results as it sparked fears of a slowdown in global tech spending with a bleak outlook However the networking giant beat on both earnings and revenues Results in DetailEarnings of 84 cents per share outpaced the Zacks Consensus Estimate by three cents and improved 12 from the year ago earnings Revenues rose 2 year over year to 13 2 billion and edged past the consensus mark of 13 02 billion partially on stronger software subscriptions read Cisco expects revenues to decline 3 5 from the year ago level and earnings per share in the range of 75 77 cents in second quarter fiscal 2020 The low end of both the ranges is below the Zacks Consensus Estimate of 2 72 for revenue growth and earnings per share of 80 cents The weak outlook suggests that companies are postponing hardware purchases amid global political and economic uncertainty including the China U S trade standoff The bleak guidance pushed shares of Cisco down as much as 5 in after hours trading on heavy volumes The stock currently has a Zacks Rank 4 Sell and VGM Score of C However it belongs to a bottom ranked industry ETFs to WatchGiven this the ETF world is also expected to see rough trading especially the ones which have the largest allocation to this network giant Below we have highlighted five of them see iShares North American Tech Multimedia Networking ETF ASX IGN This ETF provides concentrated exposure to domestic multimedia networking securities by tracking the S P North American Technology Multimedia Networking Index Holding 21 securities in its basket Cisco takes the fourth spot with 8 6 allocation The product has accumulated 87 4 million in its asset base while seeing a lower volume of around 31 000 shares a day Expense ratio comes in at 0 46 The fund carries a Zacks ETF Rank 3 Hold with a High risk outlook First Trust NASDAQ Technology Dividend Index Fund This fund provides exposure to dividend payers in the technology sector by tracking the Nasdaq Technology Dividend Index The product has amassed about 1 1 billion in its asset base and trades in moderate volume of about 81 000 shares per day The ETF charges 50 bps in annual fees and holds about 93 securities in its basket Of these firms CSCO occupies the fourth position making up roughly 7 6 of the assets First Trust Nasdaq Cybersecurity ETF This ETF follows the Nasdaq CTA Cybersecurity Index which measures the performance of companies engaged in the cyber security segment of the technology and industrials sectors It has accumulated 1 1 billion in its asset base The fund charges 60 bps in annual fees and trades in average daily volume of about 189 000 shares In total the product holds 46 stocks in its basket with Cisco taking the fourth spot at 5 9 read First Trust Dow Jones Internet Index This is one of the most popular and liquid ETFs in the broad tech space with AUM of 7 6 billion and average daily volume of around 388 000 shares The fund tracks the Dow Jones Internet Composite Index and charges 52 bps in fees per year Holding 43 stocks in its basket Cisco occupies the third position at 5 5 The product has a Zacks ETF Rank 3 with a High risk outlook Invesco Dynamic Networking ETF This fund follows the Dynamic Networking Intellidex Index holding 29 securities in its basket Of these Cisco is the sixth firm accounting for 4 9 share The fund is relatively unpopular and illiquid in the broad technology space with AUM of 65 6 million and average daily volume of about 9 000 shares It charges 63 bps in annual fees and has a Zacks ETF Rank 2 Buy with a High risk outlook read Want key ETF info delivered straight to your inbox Zacks free Fund Newsletter will brief you on top news and analysis as well as top performing ETFs each week |
CSCO | Silicom beats by 0 03 misses on revenue | Silicom NASDAQ SILC Q1 EPS of 0 56 beats by 0 03 Revenue of 29 52M 16 5 Y Y misses by 0 38M Press ReleaseNow read |
VZ | 3 Top Ranked Large Cap Value Mutual Funds For Your Portfolio | Large cap funds are considered a wise investment choice for risk averse investors when compared with small cap and mid cap funds These funds have exposure to large cap stocks with a long term performance history and more stability than what mid caps or small caps offer Companies with market capitalization of more than 10 billion are generally considered large cap However due to their significant international exposure large cap companies might be affected by a global downturn Meanwhile investors looking for a bargain i e stocks at a discount are mostly interested in value funds which pick stocks that tend to trade at a price lower than their fundamentals i e earnings book value Debt Equity and pay out dividends In the long run value stocks are expected to outperform the growth ones across all asset classes and are less vulnerable to trending markets However investors interested in choosing value funds for yield should check the mutual fund yield as not all value funds comprise solely companies that primarily use their earnings to pay out dividends Below we share with you three top ranked large cap value mutual funds Each has earned a Strong Buy and is expected to outperform its peers in the future Investors can American Century Large Company Value Investor seeks appreciation of capital for the long run ALVIX invests a bulk of its assets in equity securities of large cap companies that fall within the range of the Russell 1000 Index American Century Large Company Value Investor returned 17 over the last one year period ALVIX has an expense ratio of 0 84 compared with the category average of 1 06 American Funds American Mutual F1 invests heavily in common stocks of companies based in the U S and Canada These companies contribute in the growth of the U S economy AMFFX also invests in debt securities and bonds which include those issued by the U S government and several federal agencies The fund seeks growth of income and capital as well as preservation of capital American Funds American Mutual F1 returned 13 8 over the last one year period As of March 2017 AMFFX held 251 issues with 3 57 of its assets invested inVerizon Communications Inc NYSE VZ Becker Value Equity Retail seeks growth of capital for the long run BVEFX invests a major portion of its assets in common and preferred stocks which are undervalued and have low price to earnings ratios Becker Value Equity Retail returned 18 3 over the last one year period Michael McGarr is one of the fund managers of BVEFX since 2003 To view the Zacks Rank and past performance of all large cap value mutual funds investors can Want key mutual fund info delivered straight to your inbox Zacks free Fund Newsletter will brief you on top news and analysis as well as top performing mutual funds each week |
VZ | Frontier Communications Faces Downgrade In Credit Ratings | Regional wireline telecom operator Frontier Communications Corp NYSE T recently suffered a setback as Moody s Investors Service downgraded the corporate family rating CFR of the company to B2 from B1 based on the company s persistently weak operating results The rating agency also downgraded Frontier Communications probability of default rating PDR to B2 PD from B1 PD its secured rating to B1 from Ba3 and its unsecured rating to B2 from B1
Frontier s speculative grade liquidity SGL remains unaffected at SGL 2 The negative outlook for the company assigned by Moody s also remains unchanged
Frontier Communications continues to be significantly challenged by slow economic recovery in its service territories and competes with the loss of legacy fixed telephony business to wireless and other offerings The persistent decline in access lines continues to tighten local service revenues which accounts for most of Frontier Communications overall revenues
Management expects to continue experiencing declines in wireless backhaul revenues in 2017 This is because a number of its carrier partners might migrate to Ethernet solutions at lower price points while some customers may switch to competitors Thus deteriorating wireless backhaul business is expected to remain a headwind for Frontier Communications Also the company is experiencing a decline in its residential voice segment Management expects this downward trend to persist in the near future
As of Mar 31 2017 the number of residential customers decreased 3 2 sequentially to 4 736 000 However the average monthly residential revenue per customer was 80 62 up 0 4 sequentially Residential customer monthly churn was 2 37 up 13 9 sequentially Business customers sequentially decreased 3 6 to 484 000 Frontier Communications had 4 164 000 high speed broadband subscribers down 2 5 sequentially and 1 065 000 video customers down 7 sequentially Frontier Communications Corporation NASDAQ FTR Price and Consensus
Frontier Communications faces intense competition from large telecom operators like AT T Inc NYSE T and Comcast Corp NASDAQ CMCSA Last year the company acquired wireline assets from Verizon Communications Inc NYSE VZ in California Florida and Texas However management has yet to derive expected synergies from those acquisitions Frontier Communications currently carries a Zacks Rank 3 Hold You can see
Zacks 2017 IPO Watch List
Before looking into the stocks mentioned above you may want to get a head start on potential tech IPOs that are popping up on Zacks radar Imagine being in the first wave of investors to jump on a company with almost unlimited growth potential This Special Report gives you the current scoop on 5 that may go public at any time One has driven from 0 to a 68 billion valuation in 8 years Four others are a little less obvious but already show jaw dropping growth |
VZ | Verizon VZ On Track To Deploy 5G Fixed Wireless In 2018 | The U S telecom behemoth Verizon Communications Inc NYSE VZ is currently conducting field trials for its upcoming 5G wireless network with partners The company is considering mobile hotspot and home based fixed wireless for initial deployment of the next generation 5G wireless networks in the U S in 2018 However a full phased 5G wireless network will be offered only in 2020 Currently Verizon is conducting customer trials in 11 U S cities for fixed 5G wireless network The company is focusing on building a fiber and wireless infrastructure in a bid to deliver mobile video efficiently Recently Verizon s Chairman and CEO Lowell McAdam revealed this plan at the J P Morgan investment conference The wireless giant which was the first to deploy the 4G LTE Long Term Evolution network nationwide is initially testing equipment at 15GHz 28GHz 39GHz and 64GHz frequency bands for 5G network deployment The company s partners in the 5G project are Cisco Systems Inc NASDAQ CSCO Ericsson BS ERICAs LM NASDAQ ERIC Nokia HE NOKIA Corp NYSE NOK and Samsung KS 005930 Advantages of 5G Verizon claims that its 5G network will provide a download speed of 1 Gbps gigabit per second which is 200 times the throughput of the currently available standard 4G LTE network Latency period of data delivery will be in single milliseconds Further 5G technology is designed to be more power efficient than any other standard wireless networks available these days Therefore 5G enabled mobile devices are likely to last much longer than their 3G or 4G counterparts Additionally superfast 5G mobile networks will be of utmost necessity in managing the exponential growth of Internet connected devices popularly known as Internet of Things IoT The U S telecom industry has lately emerged as an intensely contested space where success thrives largely on technical superiority quality of services and scalability Thus in order to stay ahead of competitors existing players need to be constantly on their toes to introduce innovative products At this juncture we believe Verizon s drive for 5G wireless network bodes well for future growth Price performance of VerizonYear to date the stock price of Verizon has witnessed a decline of 14 80 in contrast to the Zacks categorized industry s growth of 1 31 in the same time period Nevertheless Verizon has a very powerful diversified business model On the wireless front it will start initial deployment of the upcoming 5G network in 2018 while on the wireline front the company is aggressively expanding its fiber based footprint In the digital media front Verizon has become a major contender for the lucrative online advertisement business We believe these are the primary reasons behind the stock currently carrying a Zacks Rank 3 Hold You can see Looking for Stocks with Skyrocketing Upside Zacks has just released a Special Report on the booming investment opportunities of legal marijuana Ignited by new referendums and legislation this industry is expected to blast from an already robust 6 7 billion to 20 2 billion in 2021 Early investors stand to make a killing but you have to be ready to act and know just where to look |
VZ | Risks growing to telecom operators defensive models Citi says | FRANKFURT Reuters Caught between regulators and competitive threats by Internet players telecom operators globally face harsh choices that could upset their favored status with investors as defensive dividend rich stocks Citi said on Wednesday
Citi research analysts say in a 146 page report that mobile and fixed line operators must choose between investing to become digital players to fend off Internet foes or streamlining their businesses and acting as dumb pipes for digital players
The global comparative survey finds dozens of promising examples of telecom network operators testing the waters to become digital players in their own right but no successful examples of complete digital makeovers
A major factor in telecoms resistance to change is that most investors prize them for their stability and consistent dividends while assigning little value and mostly big risks to the deal making and restructuring needed for digital makeovers
A majority of investors are still skeptical that such transformation with a fundamental industry impact would even happen Citi analysts write That said a growing number of investors are already starting to see digitally driven structural changes as a possibility
Among many issues raised operators may be required to make investments on an unprecedented scale in next generation 5G wireless networks due around 2020 the authors warn
The benefits of embracing new digital strategies beyond providing basic network access is that these tend to come with lower burdens from local or national regulators
Concrete moves in this direction include Verizon s N VZ push to buy web properties like Yahoo O YHOO NTT DoCoMo T 9437 and SingTel SI STEL investments in media advertising and big data Safaricom s NR SCOM move into financial services and BT L BT ownership of football broadcast rights
Still Citi notes the idea of telecoms expanding into adjacent industries is nothing new A similar idea about telecoms expanding into Internet advertising e commerce etc was in fact one of the drivers which fueled the 1990s stock market bubble in the sector
The report is called Re Birth of Telecoms into a New Digital Industry and is available at
Two years ago a similarly hefty Citi report entitled Re Birth Of Telecom Monopoly anticipated the rebound of incumbent telecom operators as powerful national players reversing years of deregulation and efforts to foster telecom competitors |
CSCO | Does Cisco CSCO Look Like A Buy Ahead Of Q1 Earnings | Cisco NASDAQ CSCO is set to report its first quarter results after market close on Wednesday November 13 The tech giant has seen its shares rise 11 5 in 2019 thus far lagging behind the broader computer office equipment market s over 44 run
Cisco is coming off a fiscal year that sent the stock retreating after the company s forward guidance exacerbated worries about a potential slowdown in the tech sector The company is looking to report a quarter that can set the tone for a strong fiscal 2020 Let s take a closer look at Cisco and what to expect from its first quarter performance
Weak Guidance Taints Fiscal 2019 Performance
Cisco reported fourth quarter results that beat our estimates on both the bottom and top line fronts helping the company bolster its overall fiscal 2019 figures The firm s Q4 metrics brought the company s full year revenue to 51 7 billion which was up roughly 7 annually and its adjusted EPS for the period to 3 10 up roughly 20
Despite the encouraging top and bottom line performances from the tech giant the forward guidance management provided for Q1 2020 sent shares lower as investors weren t satisfied with the company s expected trajectory
The company expects sales to come in between 0 to 2 growth year over year in Q1 and its midpoint guidance for adjusted EPS of 0 81 represents Y Y growth of 8 Investors felt that the projected growth didn t justify the 4 5 billion the company spent on stock buybacks last year as well as the billions spent in efforts to bolster Cisco s position in fields like cloud services cybersecurity analytics and low power wide area networks
Outlook
As the general market has tried to weigh the macroeconomic impact that the US China trade war has had on the tech sector Cisco s Q1 guidance did little to spur an assuring sentiment which prompted the selloff Management s statements about macro level shifts in key markets contributing to softer demand in its service provider category could be cause for concern especially when considering the sales decline in Q4 in that category
Management suggests that much of the slowdown is due to enterprises ramping up spending on radio equipment for the transition to 5G It also said that it will see a sales resurgence in the category once these businesses have the foundation level tech equipment in place to support their transition to the new networking technology
Our Q1 consensus estimates forecast 8 bottom line growth to 0 81 per share and a tepid increase in net sales to 13 08 billion Product revenue is projected to slip 0 81 to 9 81 billion and services are estimated to bring in 3 25 billion for a 2 13 gain Looking ahead to fiscal 2020 s figures our estimates predict a 1 79 top line jump to 52 83 billion and a 7 42 bottom line climb to 3 33 per share
Bottom Line
Cisco is currently facing a number of issues within its operations that have worried investors about a growth slowdown In addition the trade war has casted macroeconomic headwinds on Cisco that have weighed on the firm s operations making it all the more difficult for the company to sustain its growth levels
However despite stock buybacks fast dividend growth and a big push to acquire businesses and assets Cisco still boasts a net cash position of roughly 8 billion The recent pull back in the stock has brought Cisco s forward multiple down to a discounted level that it often doesn t stay at for too long For investors who may believe that Cisco can turn things around in the long run the stock s current valuation is at an opportunistic level
5 Stocks Set to DoubleEach was hand picked by a Zacks expert as the 1 favorite stock to gain 100 or more in 2020 Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth Most of the stocks in this report are flying under Wall Street radar which provides a great opportunity to get in on the ground floor |
CSCO | Ultra Clean EnPro And Cisco Highlighted As Zacks Bull And Bear Of The Day | For Immediate ReleaseChicago IL November 12 2019 Ultra Clean Holdings NASDAQ UCTT as the Bull of the Day EnPro Industries NYSE NPO as the Bear of the Day In addition Zacks Equity Research provides analysis on Cisco NASDAQ CSCO Here is a synopsis of all three stocks Ultra Clean Holdingsis a Zacks Rank 1 Strong Buy and it saw plenty of strength last week The market was grinding higher not in leaps and bounds but small moves up and some even smaller moves down What stood out to me was the big number of stocks that were hitting new highs throughout the week This tells me that a part of the market is steadily moving higher with the broader market is clawing for even small gains UCTT was one of the stocks that made new highs last week and I want to dive deeper into the story to see if the stock is likely to continue to show us strength DescriptionUltra Clean Holdings is a developer and supplier of critical subsystems for the semiconductor capital equipment flat panel solar and medical device industries Ultra Clean offers its customers an integrated outsourced solution for gas delivery systems and other subassemblies improved design to delivery cycle times component neutral design and manufacturing and component testing capabilities Ultra Clean s customers are primarily original equipment manufacturers for the semiconductor capital equipment flat panel solar and medical device industries Ultra Clean is headquartered in Menlo Park California Earnings HistoryAs I look at the last four quarters for UCTT I see a positive picture Three of the last four reports have topped the Zacks Consensus Estimate and not by a little When the lone miss a negative earnings suprise of 8 is factored in the average for the last four reports is still a positive 25 That means the three beats were all pretty big in size I see positive earnings surprises of 31 16 and 61 respectively That is what investors like to see Earnings Estimate RevisionsThe Zacks Rank is an algo that looks for the best moves in earnings estimates The consensus estimates for UCTT is doing just what investors want to see its moving higher I see small increases for this quarter next quarter this year and next year The Zacks Rank cares the most about the full year number and for 2019 that number has moved from 0 77 to 0 87 over the last 30 days The 2020 number has moved from 1 09 to 1 29 These are big moves and investors that believe that fundamentals matter know that higher EPS results lead to higher stock prices ValuationLast quarter topline growth was only 8 but that number is expected to increase as demand for UCTT services increases The stock trades at 26x forward earnings estimates and has a price to book mulitple of 2x Those are pretty low numbers for the chip industry EnPro Industriesis a Zacks Rank 5 Strong Sell and today it is the Bear of the Day Let s take a look at why this stock has the lowest Zacks Rank and if there are any good reasons to keep this stock on your radar screen DescriptionEnPro Industries Inc is a diversified manufacturer of proprietary engineered products used in critical applications EnPro Industries are a leader in sealing technologies metal polymer and filament wound bearings components and service for reciprocating compressors diesel and dual fuel engines and other solutions that meet the needs of industries worldwide EnPro Industries commitment to innovation quality and value has propelled our brands to wide recognition and leading positions in their markets EnPro businesses manufacture high quality products and provide high quality services to the customers These products and services are sold into more than 40 distinct industries with thousands of applications ranging from jet engines to chemical plants oil wells to semiconductor clean rooms and Navy ships to tractor trailer trucks EnPro operates manufacturing facilities in North and South America Europe and Asia Recent EarningsThe most recent earnings report was a miss of 0 22 or a negative 16 earnings surprise When that happens analysts tend to take down their estimates for the full year and sometime the outlook for next year is lowered as well This is part of the reason the stock slipped to a Zacks Rank 5 Strong Sell Estimate RevisionsEstimate revisions are the primary driver behind the Zacks Rank as they move up and down the Rank follows right behing For NPO the Zacks Consensus Estimate dropped for this quarter this year and next year The annual numbers carry more weight for the Rank so the moved from 4 48 to 4 21 for this year really hurt Next year saw a move from 4 87 to 4 45 and that is not a good sign ValuationWhen estimates fall the stock tends to follow along and often times multiples fall as well The forward PE for NPO is sitting at 16x while the price to book is at 1 6x Both of those metrics are on the low side but I see the topline contracting not growing The price to sales of 0 93x is less than 1 which means the market doesn t value incremental sales as much as it does for other companies Does Cisco CSCO Look Like a Buy Ahead of Q1 Earnings Cisco is set to report its first quarter results after market close on Wednesday November 13 The tech giant has seen its shares rise 11 5 in 2019 thus far lagging behind the broader computer office equipment market s over 44 run Cisco is coming off a fiscal year that sent the stock retreating after the company s forward guidance exacerbated worries about a potential slowdown in the tech sector The company is looking to report a quarter that can set the tone for a strong fiscal 2020 Let s take a closer look at Cisco and what to expect from its first quarter performance Weak Guidance Taints Fiscal 2019 Performance Cisco reported fourth quarter results that beat our estimates on both the bottom and top line fronts helping the company bolster its overall fiscal 2019 figures The firm s Q4 metrics brought the company s full year revenue to 51 7 billion which was up roughly 7 annually and its adjusted EPS for the period to 3 10 up roughly 20 Despite the encouraging top and bottom line performances from the tech giant the forward guidance management provided for Q1 2020 sent shares lower as investors weren t satisfied with the company s expected trajectory The company expects sales to come in between 0 to 2 growth year over year in Q1 and its midpoint guidance for adjusted EPS of 0 81 represents Y Y growth of 8 Investors felt that the projected growth didn t justify the 4 5 billion the company spent on stock buybacks last year as well as the billions spent in efforts to bolster Cisco s position in fields like cloud services cybersecurity analytics and low power wide area networks Outlook As the general market has tried to weigh the macroeconomic impact that the US China trade war has had on the tech sector Cisco s Q1 guidance did little to spur an assuring sentiment which prompted the selloff Management s statements about macro level shifts in key markets contributing to softer demand in its service provider category could be cause for concern especially when considering the sales decline in Q4 in that category Management suggests that much of the slowdown is due to enterprises ramping up spending on radio equipment for the transition to 5G It also said that it will see a sales resurgence in the category once these businesses have the foundation level tech equipment in place to support their transition to the new networking technology Our Q1 consensus estimates forecast 8 bottom line growth to 0 81 per share and a tepid increase in net sales to 13 08 billion Product revenue is projected to slip 0 81 to 9 81 billion and services are estimated to bring in 3 25 billion for a 2 13 gain Looking ahead to fiscal 2020 s figures our estimates predict a 1 79 top line jump to 52 83 billion and a 7 42 bottom line climb to 3 33 per share Bottom Line Cisco is currently facing a number of issues within its operations that have worried investors about a growth slowdown In addition the trade war has casted macroeconomic headwinds on Cisco that have weighed on the firm s operations making it all the more difficult for the company to sustain its growth levels However despite stock buybacks fast dividend growth and a big push to acquire businesses and assets Cisco still boasts a net cash position of roughly 8 billion The recent pull back in the stock has brought Cisco s forward multiple down to a discounted level that it often doesn t stay at for too long For investors who may believe that Cisco can turn things around in the long run the stock s current valuation is at an opportunistic level 5 Stocks Set to DoubleEach was hand picked by a Zacks expert as the 1 favorite stock to gain 100 or more in 2020 Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth Most of the stocks in this report are flying under Wall Street radar which provides a great opportunity to get in on the ground floor Media ContactZacks Investment Research800 767 3771 ext 9339Zacks com provides investment resources and informs you of these resources which you may choose to use in making your own investment decisions Zacks is providing information on this resource to you subject to the Zacks Terms and Conditions of Service disclaimer Past performance is no guarantee of future results Inherent in any investment is the potential for loss This material is being provided for informational purposes only and nothing herein constitutes investment legal accounting or tax advice or a recommendation to buy sell or hold a security No recommendation or advice is being given as to whether any investment is suitable for a particular investor It should not be assumed that any investments in securities companies sectors or markets identified and described were or will be profitable All information is current as of the date of herein and is subject to change without notice Any views or opinions expressed may not reflect those of the firm as a whole Zacks Investment Research does not engage in investment banking market making or asset management activities of any securities These returns are from hypothetical portfolios consisting of stocks with Zacks Rank 1 that were rebalanced monthly with zero transaction costs These are not the returns of actual portfolios of stocks The S P 500 is an unmanaged index Visit for information about the performance numbers displayed in this press release |
CSCO | Cisco Earnings Preview Slowing Sales May Hurt But Long Term Potential Is Intact | Reports Q1 2020 results on Wednesday Nov 13 after the close
Revenue expectation 13 07 billion
EPS expectation 0 81
Having warned that the global slowdown is starting to hit its business Cisco Systems Inc NASDAQ CSCO has successfully set a low bar for its fiscal 2020 first quarter earnings report that s scheduled to be released on Wednesday
The world s biggest maker of routers switches and other gear that companies use to connect computers is forecast to make 13 07 billion in sales for the period that ended in September a flat performance when compared to the same period a year ago Profit however is expected to rise to 0 81 a share from 0 75 according to analysts consensus forecast
The ongoing trade dispute between the U S and China coupled with a cautious approach by the company s largest customers amid a slowing global economy are some of the headwinds that are prompting companies to either put a brake on their orders or reduce their purchases of Cisco products
These products are considered the backbone of the internet economy making it an economic bellwether offering visibility on global demand and the future outlook that s hard for investors to ignore
In the last quarterly report Cisco reported that emerging markets bookings were down and the Asia Pacific region posted a decline of 8 While Cisco gets less than 3 of its revenue from China business there has dropped dramatically according to the company Chinese state owned enterprises and some telecom providers that used to use small amounts of Cisco machinery have moved to the sidelines due to the current trade tension
These negative developments have hit Cisco shares hard they dropped 17 since reaching a multi year high of 58 26 in July closing yesterday at 48 10 But despite these headwinds we still believe Cisco stock is a good value play for long term investors and could be a bet worth taking
A Solid Global Player
We derive our optimism from the company s solid global position as a network equipment supplier While the cyclical nature of this segment of the hardware market could continue to put a drag on Cisco s stock performance it s hard for companies to delay their investments indefinitely for products that are so crucial for their tech infrastructure
Another reason we re fairly bullish about Cisco is the company s aggressive diversification drive away from hardware to a software driven model within new high growth areas of the market such as cybersecurity and applications
Under Chief Executive Officer Chuck Robbins Cisco has made a string of acquisitions to build a software and services business In August it announced plans to buy closely held Voicea a maker of software that provides real time transcription and voice search capabilities In July it agreed to acquire Acacia Communications Inc NASDAQ ACIA for about 2 6 billion gaining chips and machines that help translate optical signals into electronic data
These growth initiatives coupled with the company s dominant position in the America region in which its generates the majority of its sales have positioned the company to outperform when the macroeconomic risks reduce In addition to growth Cisco is also a reliable company that pays regular dividends making it an attractive option for those seeking to earn a growing income
With its current annual yield touching about 3 investors are getting 0 35 a share payout which has risen 14 20 per year during the past five years
Bottom Line
Cisco is a company which is set to deliver strong growth as it benefits from a good mix of recurring revenue from its legacy business and its focus on the new high margin areas We believe any post earning weakness on Wednesday should be taken as an opportunity to buy this quality stock |
CSCO | Iran hit by global cyber attack that left U S flag on screens | DUBAI Reuters Hackers have attacked networks in a number of countries including data centers in Iran where they left the image of a U S flag on screens along with a warning Don t mess with our elections the Iranian IT ministry said on Saturday The attack apparently affected 200 000 router switches across the world in a widespread attack including 3 500 switches in our country the Communication and Information Technology Ministry said in a statement carried by Iran s official news agency IRNA The statement said the attack which hit internet service providers and cut off web access for subscribers was made possible by a vulnerability in routers from Cisco O CSCO which had earlier issued a warning and provided a patch that some firms had failed to install over the Iranian new year holiday A blog published on Thursday by Nick Biasini a threat researcher at Cisco s Talos Security Intelligence and Research Group said Several incidents in multiple countries including some specifically targeting critical infrastructure have involved the misuse of the Smart Install protocol As a result we are taking an active stance and are urging customers again of the elevated risk and available remediation paths On Saturday evening Cisco said those postings were a tool to help clients identify weaknesses and repel a cyber attack Iran s IT Minister Mohammad Javad Azari Jahromi posted a picture of a computer screen on Twitter with the image of the U S flag and the hackers message He said it was not yet clear who had carried out the attack Azari Jahromi said the attack mainly affected Europe India and the United States state television reported Some 55 000 devices were affected in the United States and 14 000 in China and Iran s share of affected devices was 2 percent Azari Jahromi was quoted as saying In a tweet Azari Jahromi said the state computer emergency response body MAHER had shown weaknesses in providing information to affected companies after the attack which was detected late on Friday in Iran
Hadi Sajadi deputy head of the state run Information Technology Organisation of Iran said the attack was neutralized within hours and no data was lost |
VZ | Level 3 Communications LVLT Q1 Earnings Miss Revenues Top | Level 3 Communications Inc NYSE T reported mixed financial results for the first quarter of 2017 ended Mar 31 2017 While the top line beat the Zacks Consensus Estimate the bottom line missed the same Net IncomeOn a GAAP basis net income in the reported quarter was 95 million or 26 cents per share compared with 128 million or 36 cents per share in the year ago quarter However quarterly adjusted earnings per share EPS of 34 cents missed the Zacks Consensus Estimate of 37 cents There was no change in the company s bottom line year over year RevenueFirst quarter 2017 total revenue was 2 048 million down 15 year over year and above the Zacks Consensus Estimate of 2 046 9 million Segment wise Core Network Services CNS revenues came in at 1 946 million flat year over year Wholesale Voice Services and Other revenues totaled 102 million compared with 105 million in the year ago quarter Geographically North America generated 1 594 million in CNS revenues down 0 44 year over year Europe the Middle East and Africa accounted for 175 million of revenues at CNS down 8 while Latin America contributed 177 million up 14 Operating MetricsTotal operating expenses in the reported quarter were 1 711 million compared with 1 689 million in the year ago quarter Operating income came in at 337 million compared with 362 million in the first quarter of 2016 Adjusted EBITDA earnings before interest tax depreciation and amortization was 725 million versus 710 million at the end of Mar 2016 Adjusted EBITDA margin expanded to 35 4 from 34 6 in the prior year quarter Cash FlowIn the first quarter of 2017 Level 3 Communications generated 539 million of cash from operations compared with 510 million in the year ago quarter Free cash flow was 173 million compared with 213 million in the prior year quarter LiquidityAt the end of Mar 2017 the company had 1 947 million of cash and cash equivalents and 10 581 million of outstanding debt compared with 1 004 million and 10 870 million respectively at the end of Mar 2016 Meanwhile the debt to capitalization ratio was 0 42 compared with 0 43 at the end of Mar 2016 Level 3 Communications Inc Price Consensus and EPS Surprise
2017 GuidanceThe full year guidance was reiterated at 2 94 3 00 billion for EBITDA 1 10 1 16 billion for free cash flow and 16 of total revenue for capital expenditure Depreciation and amortization is projected at be 1 35 billion Recent DevelopmentIn Mar 2017 CenturyLink Inc NYSE T and Level 3 Communications moved a step closer to completing their proposed merger amid overwhelming approval of shareholders of both sides The cash and stock deal is expected to close by the end of third quarter of 2017 subject to customary regulatory approvals The merged entity will be able to compete with telecom giants like AT T Inc NYSE T and Verizon Communications Inc NYSE VZ Level 3 Communications currently carries a Zacks Rank 3 Hold You can see Will You Make a Fortune on the Shift to Electric Cars Here s another stock idea to consider Much like petroleum 150 years ago lithium power may soon shake the world creating millionaires and reshaping geo politics Soon electric vehicles EVs may be cheaper than gas guzzlers Some are already reaching 265 miles on a single charge With battery prices plummeting and charging stations set to multiply one company stands out as the 1 stock to buy according to Zacks research It s not the one you think |
VZ | Here s Why Straight Path STRP Stock Skyrocketed 30 Today | Shares of Straight Path Communications Inc NYSE T soared on Monday morning amid news that it has received another massive anonymous buyout offer as the war to buy the wireless spectrum holding company ratchets up once again
The new all stock offer from an unknown bidder is reportedly worth 184 per share which would value Straight Path at nearly 3 1 billion Straight Path s stock jumped 32 29 to 213 64 per share in morning trading on Monday shortly after initial reports surfaced
According to Verizon Communications Inc NYSE VZ is the unidentified telecommunications giant looking to buy the wireless spectrum power
Monday s bid comes roughly a month after AT T Inc NYSE T Straight Path for 1 25 billion which at the time marked a 160 premium The bidding war officially started on April 25 when the company announced it received a It is still unclear where that offer came from Straight Path said the new bidder would pay AT T its 38 million termination fee that was part of the initial buyout deal
If Verizon actually is the anonymous bidder it looks like the two largest U S wireless carriers are ready to duel it out over Straight Path as the race towards 5G intensifies
Straight Path is one of the largest holders of 28 GHz and 39 GHz spectrum in the U S which are both included in the FCC s designation for the next generation of wireless broadband services known as 5G Straight Path holds the rights to 868 spectrum licenses in total
In its initial buyout statement The acquisition will support AT T s leadership in 5G which will accelerate the delivery of new experiences for consumers and businesses like virtual and augmented reality telemedicine autonomous cars smart cities and more
The bidding war has sent Straight Path s stock on a massive uptick over the last month As of April 3 the company s stock was trading at 36 48 per share Shares of Straight Path closed at 161 49 on Friday and the company s stock continues to rise on Monday
If you want to know more about the 5G Race check out our guide
5 Trades Could Profit Big League from Trump Policies
If the stocks above spark your interest wait until you look into companies primed to make substantial gains from Washington s changing course Today Zacks reveals 5 tickers that could benefit from new trends like streamlined drug approvals tariffs lower taxes higher interest rates and spending surges in defense and infrastructure |
VZ | VZ Rising Megaphone Set Up Back To All Time High | VZ has Put In a Neely Crash Set Up That Targets the All Time High
Verizon Communications Inc NYSE VZ put in a long term Neely B Failure Flat set up when it crashed into the 2002 low put in a partial retrace and extended topping into the 2007 high and then crashed back to a retest of the 2002 low in 2008
The retest of the low set up a move back to the pre crash high and VZ is moving up to that high within the red rising megaphone
A head and shoulders top within that red rising megaphone with a right shoulder bounce off the rising megaphone bottom would set up a breakout into a move to the red rising megaphone bottom |
VZ | Frontier Communications Risk Reward Bonds Vs Stock Vs Options | To the chagrin of yield chasers Frontier Communications NASDAQ FTR finally cut its big dividend Specifically the dividend was reduced by 62 last week it now sits at 13 2 and the stock is now down 64 this year For your consideration this article reviews the potential risks and rewards of investing in Frontier s high yield bonds 10 YTM big dividend stock and leveraged options
Overview
Frontier provides phone Internet and data services to urban suburban and rural communities in 29 states The company has been struggling with customer attrition challenging integration issues they recently acquired assets from Verizon in California Texas and Florida and a significant amount of debt Despite the significant price decline the recent dividend cut is a strong signal from managements that they believe a more stable Frontier is around the corner
The High Yield Bonds
As the following chart shows AT T NYSE T has various magnitudes of high yield debt outstanding some of which offers double digit yield that will mature in the coming years
And as the discounts and premiums to par in the following table indicate the market has a high degree of confidence in the company s near term bonds but not so much the longer term bonds
For example the outstanding 2018 2020 bonds all trade at a premium to par and offer reasonable yields to maturity indicating the bond market believes the chances of default are less likely than the longer dated bonds On the other hand the outstanding bonds that mature in 2021 and beyond trade at discounts to par and offer significantly higher yields to maturity an indication that the bond market has far less confidence in Frontier beyond 2020 Said differently Frontier appears to have the financial wherewithal to stay afloat for a couple more years but beyond that timeframe things are very uncertain
Referring back to our earlier graph of debt maturities and magnitudes Frontier should have no problem meeting its debt obligations in 2017 It has 341 million of cash and short term investments on its balance sheet and only 325 million of 2017 debt maturities much of which has already been paid off
Next we agree with the market s assessment that Frontier should be able to manage its 2018 2020 debts remember these trade above par an indication of market confidence relative to the later dated bonds that trade at a discount Specifically despite Frontier s struggles it has continued to generate hundreds of millions of dollars of positive free cash flow year after year see chart below and this will help pay the 2018 2020 debt maturities Not to mention the recent dividend cut frees up significantly more cash hundreds of millions per year to help support the debt payments
Moving out to the large amounts of debt maturing in 2021 2022 things get more hairy as indicated by the higher yields to maturity and significantly discounted prices versus par However Frontier has a few tricks up its sleeve to help cover these large outstanding debts
For example the company recently announced that it is willing and able to issue new secured debt in the second quarter This will help pay down outstanding debt and reduce interest payments thereby freeing up more cash to support the 2021 2022 bonds Additionally there is an increasing likelihood that Frontier will go to the capital markets to raise more cash via a new equity offering Such an offering would most likely not be good for existing shareholders it would likely be dilutive but it would be good for bondholders it ll help the company pay its debts
Further management was optimistic on the recent earnings call that they d be able to stop the steady outflow of customers the Verizon NYSE VZ integration is improving and for some customers Frontier is simply the only option
If we combine Frontier s free cash flow generation the new debt offering the reduced interest payments the potential new equity offering and the possibility of less or even eliminating customer attrition the company likely does have the wherewithal to support the bonds at least through 2022 in our view
The debt maturities in 2023 and 2024 are relatively small however it s the huge maturities 4 5 billion in 2025 that will create the most significant challenge in our view And as our earlier table shows this is the debt 2025 and beyond that trades at the most significant discount to par However for the most optimistic investors there are reasons to believe that this debt 2025 is also money good For example aside from getting earlier maturity debt under control thereby freeing up more cash to support the later maturity debt and aside from management s optimistic view that they will turn things around this debt could get support from the regulators government and or by another company acquiring Frontier and thereby assuming responsibility for the debt
With regards to regulator government support there is an interest in ensuring Frontier customers have access to data phone and Internet For example the Connecting America program allows the government to turn up and down the funds provided to Frontier to support its business In particular from 2012 2014 Frontier received 133 million in Connecting America funds they received 280 million in 2015 2015 annual report p 9 and in 2016 they received 626 million in total subsidies 2016 Annual Report p 30 In cases where Frontier is the only option the government wants to make sure customers have access to phone Internet and data
And regarding an acquisition if Frontier s stock price gets cheap enough someone larger will acquire them And this will be with the blessing and perhaps financial support of the regulators government because they want Frontier s customers to continue to have access to high speed connections And if Frontier gets acquired it ll be by someone with better financial wherewithal at it ll cause the value of the bonds to increase significantly
Overall we agree with the market s assessment that the Frontier bonds maturing before 2021 have less risk 2021 2024 are higher risk and 2025 and beyond are very highly uncertain And we also agree with our own thesis about the bonds from late February
The Stock
Frontier s common stock currently offers a 13 3 dividend yield and to some extent it trades like an option right now Specifically at a price of around 1 20 per share the downside risk is limited to 1 20 if it goes to zero However if Frontier gets its business and finances in order then the shares could easily triple in price and trade back up to the 3 60 3 75 range that it achieved earlier this year
However in our view the stock is much riskier than the bonds Besides being a lower priority in the capital structure management could easily cut the dividend on the stock to zero if they need more cash to support the bonds and this would torpedo the stock price In fact this type of action is often prudent given the higher priority of bonds than stock in the capital structure In our view the only reason management hasn t slashed the dividend to zero is because they still want to keep the stock price as high as they can in case they need to go to the capital markets to raise more cash via an equity offering If they had cut the dividend to zero already it might have helped free up cash for the debt but the stock price would have fallen much further and the company wouldn t be able to raise as much cash in a public equity offering if need be
Frontier also has preferred shares outstanding Frontier Communications Corp NASDAQ FTR 11 125 Mandatory Convertible Preferred Stock Series A liquidation preference 100 per share which offer a high dividend and trade at a discounted price as described below
The preferred shares are mandatorily convertible on 6 29 2018 into a variable number of Frontier Communications Corp NYSE FTR common shares based on the then current price of the common shares for 20 consecutive trading days immediately prior to the conversion date The conversion settlement rate will be 17 0213 shares per unit if the then current market price is equal to or greater than 5 875 and 20 0000 shares per unit if the market price is equal to or less than 5 00 For market prices between those values the settlement rate will be 100 divided by the market value
The preferred shares are above the common in the capital structure but they re still very risky considering the common currently trades far below the 5 lower end conversion rate price on the preferreds as described above
The Options
If the optionality like features of investing in Frontier common stock is not enough for you then you might also consider the actual options market for Frontier stock For example as the following table shows you can purchase a call option giving you the right to buy Frontier at 1 50 per share between now and expiration on January 19 2018 for 0 25
This means for example if the shares return back to 3 75 per share they traded at this price earlier this year before the option expires you will be able to generate a 700 profit on your money i e you make a profit of 2 00 and you only paid 0 25 And the largest amount you can lose is simply the 0 25 you paid for the option Even if the shares only rise to 2 25 per share very possible given the volatility you d still generate a profit of 100 you d have doubled your initial 0 25 investment
Conclusion
Without question Frontier is a very risky investment And investors should always cater their investment portfolios to meet their own personal investment needs and tolerance for risk Regardless of whether you are interested in investing in the bonds the stock the options or none of the above Frontier will be very interesting to watch |
VZ | Some Yahoo users close accounts amid fears breach could have ripple effects | By Angela Moon and Amy Tennery Reuters Many Yahoo NASDAQ YHOO users rushed on Friday to close their accounts and change passwords as experts warned that the fallout from one of the largest cyber breaches in history could spill beyond the internet company s services After Yahoo disclosed on Thursday that hackers had stolen the encrypted passwords and personal details of more than 500 million accounts in 2014 thousands of users took to social media to express anger that it had taken the company two years to uncover the data breach Several users said they were closing their accounts We re probably just going to dump Yahoo altogether said Rick Hollister 56 who owns a private investigation firm in Tallahassee Florida They should have been more on top of this Due to the scale of the Yahoo breach and because users often recycle passwords and security answers across multiple services cyber security experts warned the impact of the hack could reverberate throughout the internet Several users said they were scrambling to change log in information not just for Yahoo but for multiple internet accounts with the same passwords Accounts at banks retailers and elsewhere could be vulnerable I suppose a hacker could make the connection between my Yahoo and Gmail said Scott Braun 47 who created a Yahoo email when he was setting up a shop on online retailer Etsy They both use my first and last name Not being a hacker I don t know what their capabilities are That concern was echoed in Washington The seriousness of this breach at Yahoo is huge Democratic Senator Mark Warner said Thursday The company plans to brief Warner next week about the attack his office said Yahoo has said that it believes that the breach was perpetrated by a state sponsored actor SY Lee a former Department of Homeland Security spokesman said that would be of particular concern to the intelligence community given the interest state sponsored hackers have in compromising employees with security clearances The FBI had not issued specific guidance to its employees on handling their personal Yahoo accounts a spokeswoman said British companies BT Group L BT and Sky Plc L SKYB which use Yahoo to host email for some of their broadband customers said they were communicating with their users Yahoo urged users to change their passwords and security questions but some said it would be easier just to give up their accounts because they rarely use them The company has been losing users traffic and ad revenue in recent years and over the summer agreed to sell its core business for 4 8 billion to Verizon N VZ Rachel a 33 year old from Newcastle England who asked Reuters not to use her last name said she would be shutting down the Yahoo account she opened in 1999 Furious that the company had not protected its customers data better she said she thought this could be yet another blow for the email service which has been overtaken in popularity by Google s Gmail over the last decade But Cody Littlewood who owns a start up incubator in Miami Beach was one of several users who said it was precisely because of the decline in the use of Yahoo s services that they were not worried about the hack
Yahoo is only relevant for fantasy football Worst case scenario they get into my account and drop Jamaal Charles he said a reference to the star Kansas City running back who regularly tops fantasy football rankings |
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