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VZ | U S senator seeks SEC probe of Yahoo disclosure on hacking | By Dustin Volz and Jim Finkle WASHINGTON Reuters Democratic Senator Mark Warner on Monday asked the U S Securities and Exchange Commission to investigate whether Yahoo O YHOO and its senior executives fulfilled obligations to inform investors and the public about a hacking attack affecting 500 million user accounts Disclosure is the foundation of federal securities laws and public companies are required to disclose material events that shareholders should know about Warner said in a letter to SEC Chairwoman Mary Jo White Yahoo has faced pointed questions about exactly when it knew about the 2014 cyber attack announced last week that exposed the email credentials of half a billion accounts a critical issue for the company as it seeks to prevent the breach from affecting a pending takeover of its core business by Verizon Inc N VZ Warner also asked the SEC to probe whether Yahoo has made complete and accurate representations about the security of its information technology systems and for the agency to evaluate its current thresholds for how and when companies need to report a material data breach Although the SEC has longstanding 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 In a Sept 9 regulatory filing with the SEC Yahoo stated it did not have knowledge of any incidents of or third party claims alleging unauthorized access of personal data of its customers that could have a material adverse effect on Verizon s acquisition Establishing that Yahoo is liable for damages under SEC rules is a pretty high bar in data breach cases said Robert Cattanach a lawyer at Dorsey Whitney who specializes in cyber security Yahoo is additionally protected from liability given the relative lack of sensitivity of the data compromised Cattanach said though he said both the SEC and Federal Trade Commission were likely to open investigations At least one state Massachusetts is also seeking more information from Yahoo about the breach a spokesperson for the state s attorney general told Reuters on Monday Yahoo has so far not provided a clear detailed timeline about when it was made aware of the breach announced Thursday Cyber security services firm Stroz Friedberg has been hired by Yahoo to help investigate the breach firm spokeswoman Carolyn Vadino said
The FBI is also investigating the hack which Yahoo has blamed on a state sponsored actor although the company has not provided technical information to support that claim |
VZ | Senators accuse Yahoo of unacceptable delay in hack discovery | By Dustin Volz and Lisa Lambert WASHINGTON Reuters Six senators on Tuesday demanded that Yahoo Inc O YHOO explain why hackers theft of user information for 500 million accounts two years ago came to light only last week and called the company s handling of the breach unacceptable The lawmakers all Democrats said they were disturbed that the 2014 intrusion which was disclosed by the company on Thursday was detected so long after it occurred That means millions of Americans data may have been compromised for two years the senators wrote in a letter to Yahoo Chief Executive Marissa Mayer This is unacceptable A Yahoo spokesman said the company would respond in a timely and appropriate manner to the letter which was signed by Senators Patrick Leahy Al Franken Elizabeth Warren Richard Blumenthal Ron Wyden and Edward Markey The top U S stock market regulator said separately that prompt disclosure by companies of cyber events is a priority Securities and Exchange Commission Chair Mary Jo White asked about Yahoo said she could not comment specifically on it She earlier said at a conference that SEC examiners in recent months have been checking that companies comply with 2011 agency guidance stressing the need to disclose hacks Yahoo has faced mounting questions about exactly when it knew about the 2014 cyber attack that exposed the email credentials of users a critical issue for the company as it seeks to prevent the breach from affecting a pending takeover of its core business by Verizon Inc N VZ The internet firm has said it detected the breach this summer after conducting a security review prompted by an unrelated hacking claim that turned out to be meritless Yahoo has not given a precise timeline explaining when it was made aware of the 2014 attack or if it knew of the breach before announcing the deal with Verizon in late July In a Senate hearing on Tuesday Federal Trade Commission Chairwoman Edith Ramirez said her agency supported quick disclosures although she declined to say if the FTC was investigating Yahoo In our view approximately 30 to 60 days after a breach is discovered might be appropriate she told the Senate Commerce Committee It is necessary for consumers to be notified so they can take appropriate steps to protect themselves In their letter the senators requested Yahoo brief them on the company s investigation cooperation with authorities and plans to protect affected users The senators asked Mayer for a timeline of the hack and discovery as well as Yahoo s steps to prevent another breach Yahoo s shares closed up 2 5 percent at 43 37 each in a broadly bullish market on Tuesday The letter came a day after Democratic Senator Mark Warner asked the U S Securities and Exchange Commission to investigate whether Yahoo and its senior executives fulfilled obligations to inform investors and the public about the hacking attack which Yahoo has blamed on a state sponsored actor
The SEC has guidance for companies on reporting hacks but companies that have experienced breaches often omit details from regulatory filings a 2012 Reuters investigation found |
VZ | Cyber firm challenges Yahoo claim hack was state sponsored | By Dustin Volz WASHINGTON Reuters A cyber security company on Wednesday asserted that the hack of 500 million account credentials from Yahoo NASDAQ YHOO was the work of an Eastern European criminal gang adding another layer of intrigue to a murky investigation into the unprecedented data heist Arizona based InfoArmor issued a report whose conclusion challenged Yahoo s position that a nation state actor orchestrated the heist disclosed last week by the internet company InfoArmor which provides companies with protection against employee identify theft said the hacked trove of user data was later sold to at least three clients including one state sponsored group Reuters was unable to verify the report s findings Yahoo declined comment The Federal Bureau of Investigation which is investigating the hack did not return a call seeking comment A U S government source familiar with the Yahoo investigation said there was no hard evidence yet on whether the hack was state sponsored Attribution for cyber attacks is widely considered difficult in both the intelligence and research communities The task is made especially challenging by the fact that criminal hackers sometimes provide information to government intelligence agencies or offer their services for hire making it hard to know who the ultimate mastermind of a hack might be Yahoo said last week that it only recently discovered the intrusion which it blamed on a state sponsored actor without providing technical evidence Nation state hackers are widely viewed as possessing more advanced capabilities than criminal groups a perception that could benefit Yahoo as it works to minimize fallout from the breach and complete its sale to Verizon Communications Inc N VZ InfoArmor concluded the Yahoo hackers were criminal after reviewing a small sample of compromised accounts Andrew Komarov the firm s chief intelligence officer said in an interview The hackers dubbed Group E have a track record of selling stolen personal data on the dark web and have been previously linked to breaches at LinkedIn NYSE LNKD Tumblr and MySpace Komarov said They have never been hired by anyone to hack Yahoo Komarov who is from Russia said They were simply looking for well known sites that had many users In an illustration of the confusion about who carried out the hack and why an NBC News report Wednesday interpreted Komarov s findings as pointing to the Russian government as the ultimate perpetrator
A Wall Street Journal report which said that InfoArmor was able to crack encrypted passwords for some Yahoo accounts provided by the newspaper came to the opposite conclusion |
CSCO | Cisco Systems CSCO Reports Next Week Wall Street Expects Earnings Growth | Cisco Systems NASDAQ CSCO is expected to deliver a year over year increase in earnings on higher revenues when it reports results for the quarter ended October 2019 This widely known consensus outlook gives a good sense of the company s earnings picture but how the actual results compare to these estimates is a powerful factor that could impact its near term stock price
The earnings report which is expected to be released on November 13 2019 might help the stock move higher if these key numbers are better than expectations On the other hand if they miss the stock may move lower
While the sustainability of the immediate price change and future earnings expectations will mostly depend on management s discussion of business conditions on the earnings call it s worth handicapping the probability of a positive EPS surprise
Zacks Consensus Estimate
This seller of routers switches software and services is expected to post quarterly earnings of 0 81 per share in its upcoming report which represents a year over year change of 8
Revenues are expected to be 13 08 billion up 0 from the year ago quarter
Estimate Revisions Trend
The consensus EPS estimate for the quarter has been revised 0 76 lower over the last 30 days to the current level This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period
Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts
Price Consensus and EPS Surprise
Earnings Whisper
Estimate revisions ahead of a company s earnings release offer clues to the business conditions for the period whose results are coming out This insight is at the core of our proprietary surprise prediction model the Zacks Earnings ESP Expected Surprise Prediction
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate The idea here is that analysts revising their estimates right before an earnings release have the latest information which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier
Thus a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate However the model s predictive power is significant for positive ESP readings only
A positive Earnings ESP is a strong predictor of an earnings beat particularly when combined with a Zacks Rank 1 Strong Buy 2 Buy or 3 Hold Our research shows that stocks with this combination produce a positive surprise nearly 70 of the time and a solid Zacks Rank actually increases the predictive power of Earnings ESP
Please note that a negative Earnings ESP reading is not indicative of an earnings miss Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and or Zacks Rank of 4 Sell or 5 Strong Sell
How Have the Numbers Shaped Up for Cisco
For Cisco the Most Accurate Estimate is lower than the Zacks Consensus Estimate suggesting that analysts have recently become bearish on the company s earnings prospects This has resulted in an Earnings ESP of 0 41
On the other hand the stock currently carries a Zacks Rank of 3
So this combination makes it difficult to conclusively predict that Cisco will beat the consensus EPS estimate
Does Earnings Surprise History Hold Any Clue
While calculating estimates for a company s future earnings analysts often consider to what extent it has been able to match past consensus estimates So it s worth taking a look at the surprise history for gauging its influence on the upcoming number
For the last reported quarter it was expected that Cisco 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 beaten consensus EPS estimates four times
Bottom Line
An earnings beat or miss may not be the sole basis for a stock moving higher or lower Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors Similarly unforeseen catalysts help a number of stocks gain despite an earnings miss
That said betting on stocks that are expected to beat earnings expectations does increase the odds of success This is why it s worth checking a company s Earnings ESP and Zacks Rank ahead of its quarterly release Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they ve reported
Cisco doesn t appear a compelling earnings beat candidate However investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release |
CSCO | Computer Networking Industry Near Term Prospects Bleak | The Zacks industry comprises companies that provide networking and Internet connected products such as wireless WiFi and LTE Ethernet and powerline with focus on reliability and ease of use Some of the industry participants also provide business and mission critical IoT solutions and services to help customers create next generation connected products with high levels of security reliability and assured performance Moreover increased focus on cloud computing and cloud storage is driving the industry A prominent industry player is Cisco Systems NASDAQ CSCO Inc CSCO Here are the three major themes in the industry The industry is characterized by brisk technological change dynamic products high speed connectivity low latency and evolving industry standards The advancements in areas like IoT AI ML and increase of cloud applications are creating hold immense potential for the industry players With rapid growth in video and other bandwidth intensive applications the industry participants are making significant investments in LTE broadband and fiber in order to provide additional capacity and improve Internet and wireless networks The impending 5G boom is likely to propel the industry to newer heights The success of 5G technology hinges on substantial investments to upgrade infrastructure in the core fiber backhaul network to support anticipated growth in data services This bodes well for the industry players However the ongoing U S China trade war has created an uncertain environment that is not conducive for investments Moreover foreign exchange volatility sluggishness in global economic growth and shift in consumer buying patterns is likely to dampen growth prospects of the industry participants Zacks Industry Rank Indicates Cloudy ProspectsThe Zacks Computer Networking industry is housed within the broader sector It carries a Zacks Industry Rank 219 which places it at the bottom 13 of 256 Zacks industries The group s which is basically the average of the Zacks Rank of all the member stocks indicates continued underperformance in the near term Our research shows that the top 50 of the Zacks ranked industries outperforms the bottom 50 by a factor of more than 2 to 1 The industry s positioning in the bottom 50 of the Zacks ranked industries is a result of negative earnings outlook for the constituent companies in aggregate Looking at the aggregate earnings estimate revisions it appears that analysts are pessimistic on this group s earnings growth potential Before we present a few stocks that you may want to consider for your portfolio let s take a look at the industry s recent stock market performance and valuation picture Industry Lags Sector and S P 500The Zacks Computer Networking industry has underperformed the broader sector as well as the Zacks S P 500 composite over the past year The industry has gained 5 over this period compared with the S P 500 s rally of 13 and the broader sector s growth of 18 9 One Year Price Performance Industry s Current ValuationOn the basis of forward 12 month P E which is a commonly used multiple for valuing computer networking stocks we see that the industry is currently trading at 18 42X compared with the S P 500 s 19 24X It is also below the sector s forward 12 month P E of 24 09X Over the past five years the industry has traded as high as 21 75X and as low as 11 89X with media being at 15 46X as the chart below shows
Price to Earnings P E Ratio F1
Price to Earnings P E Ratio F1
Bottom LineIncreased focus on cloud computing big data and cloud storage will continue to drive revenues for the industry participants However sluggishness in global economic growth and shift in consumer buying patterns are likely to act as dampeners Currently none of the stocks in the ZacksComputer Networking industry flaunts either a Zacks Rank 1 Strong Buy or a Zacks Rank 2 Buy You can see However we are presenting three stocks with a Zacks Rank 3 Hold that investors may retain for the time being Digi International Inc DGII This provider of business and mission critical IoT products and services has a long term expected EPS growth rate of 14 5 Price and Consensus DGIIExtreme Networks Inc EXTR The company offers next generation of switching solutions that meet the increasing needs of enterprise local area networks Internet service providers and content providersPrice and Consensus EXTRNetScout Systems Inc NTCT The company is a provider of business assurance for today s most demanding service providers enterprises and government networks Price and Consensus NTCT5 Stocks Set to Double Each 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 |
VZ | AT T T Q1 Earnings In Line With Estimates Revenues Miss | U S telecom major AT T Inc NYSE T reported mixed financial results in the first quarter of 2017 While the top line lagged the Zacks Consensus Estimate the bottom line came in line with the same In the reported quarter the company recorded 2 7 million net additions of wireless subscribers Of the total 2 1 million net additions were in the U S driven by prepaid and connected devices with another 633 000 net additions recorded in Mexico On a GAAP basis AT T reported net income of 3 469 million or 56 cents per share compared with 3 803 million or 61 cents in the year ago quarter Quarterly adjusted excluding non recurring items earnings per share were 74 cents in line with the Zacks Consensus Estimate Quarterly total revenue dropped 2 9 year over year to 39 365 million but fell below the Zacks Consensus Estimate of 40 661 million Of this Service revenues were 36 456 million down 1 7 and Equipment revenues were 2 909 million down 15 3 Total operating expenses in the reported quarter were 32 501 million down 2 7 year over year Operating income was 6 864 million compared with 7 131 million in the year ago quarter Cash Flow LiquidityIn the first quarter of 2017 AT T generated 9 218 million of cash from operations compared with 7 900 million in the year ago quarter Free cash flow in the reported quarter was 3 203 million compared with 3 231 million a year ago At the end of the first quarter of 2017 AT T had 14 884 million of cash and cash equivalents and 133 249 million of total debt outstanding compared with 5 788 million and 123 513 million respectively at the end of 2016 The debt to capitalization ratio was 0 49 at the end of the reported quarter compared with 0 48 at the end of 2016 Business Solutions SegmentTotal revenue at the segment was 16 848 million down 4 3 year over year Of this Wireless service revenues totaled 7 929 million inching up 0 9 year over year Fixed strategic services revenues reached 2 974 million up 8 1 Legacy voice and data services contributed 3 630 million down 17 Other service equipment generated 817 million down 4 9 while Wireless Equipment revenues totaled 1 498 million down 15 4 Operating income was 4 360 million up 1 4 However operating margin was 25 9 compared with 24 4 in the prior year quarter As of Mar 31 2017 the Business Solutions wireless subscriber base was 82 354 million up 8 7 year over year Within this Postpaid wireless subscriber count was 50 839 million and Connected Devices were 31 439 million In the reported quarter this segment lost a net 125 000 postpaid wireless customers but gained 2 553 million connected devices Business wireless postpaid churn rate was 1 07 compared with 1 02 in the year ago quarter Total wireline broadband connections were 1 426 million down 4 4 year over year IP broadband was pegged at 980 000 Net broadband addition was 4 000 Entertainment Group Segment Total revenue at the segment grossed 12 623 million inching down 0 3 year over year post the DIRECTV acquisition Of the total video entertainment revenues were 9 020 million up 1 3 High Speed Internet revenues were 1 941 million up 7 7 Legacy voice and data services contributed 1 056 million down 19 6 Equipment and Other service generated 606 million down 5 Operating income was 1 603 million in the reported quarter compared with 1 592 million in the prior year quarter Operating margin was 12 7 compared with 12 6 a year ago As of Mar 31 2017 total video connections at this segment were 25 032 million down 1 2 Of the total Satellite connections tallied 21 012 million up 4 5 and U verse connections were 4 02 million down 23 2 In the reported quarter AT T lost 233 000 U verse customers while satellite TV customer count remains same Total broadband connections at this segment were 14 294 million flat year over year Of the total IP broadband was pegged at 13 130 million while DSL broadband was 1 164 million Total wireline voice connections were 11 003 million down 9 2 Consumer Mobility SegmentTotal revenue at the segment was 7 740 million down 7 1 year over year Of the total Service revenues were 6 609 million down 4 8 Equipment revenues generated 1 131 million down 18 3 Operating income was 2 339 million down 6 2 Operating margin was 30 2 compared with 29 9 in the prior year quarter As of Mar 31 2017 the Consumer Mobility wireless subscriber base was 51 864 million down 5 1 Of this postpaid wireless subscribers totaled 26 51 million and prepaid wireless customers were 13 844 million Reseller wireless subscriber base totalled 10 549 million and Connected Devices count was 961 000 In the reported quarter this segment gained a net of 282 000 prepaid customers and 19 000 connected devices but lost a net of 66 000 postpaid wireless customers and 588 000 resellers Consumer Mobility postpaid churn rate was 1 22 compared with 1 24 in the year ago quarter Total churn rate for the segment was 2 42 up from 2 11 in the year ago quarter International SegmentTotal revenue at the segment was 1 929 million up 15 7 year over year Within the total Video entertainment revenues were 1 341 million up 18 7 Wireless service revenues were 475 million up 4 4 Wireless Equipment revenues were 113 million up 37 8 Operating loss was 100 million compared with 184 million in the year ago quarter As of Mar 31 2017 the International wireless subscriber base was 12 606 million up 36 8 year over year In the reported quarter this segment gained a net of 647 000 wireless customers The International video subscriber base touched 13 678 million up 10 year over year However the company gained 91 000 International video customers in the reported quarter 2017 OutlookAT T has projected that its consolidated revenues will witness in low single digit growth in 2017 Adjusted EPS growth will be in the mid single digit range Adjusted operating margin will expand in 2017 Full year capital expenditures and free cash flow will be approximately 22 billion and 18 billion respectively AT T Inc Price Consensus and EPS Surprise
Recent DevelopmentsIn sync with the ongoing consolidation trend between the telecom and media sectors 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 Interestingly in a similar case cable TV giant Comcast Corp NASDAQ CMCSA became a media mogul after acquiring NBC Universal in 2011 The company is set to enter the wireless field in mid 2017 Verizon Communications Inc NYSE VZ took over AOL to target the lucrative online advertising market and its impending acquisition of Yahoo NASDAQ YHOO Inc may provide the company access to world class online content Therefore we believe AT T s decision to acquire Time Warner will position it well to remain competitive in the changed market condition AT T currently carries a Zacks Rank 3 Hold You can see Looking for Ideas with Even Greater Upside Today s investment ideas are short term directly based on our proven 1 to 3 month indicator In addition I invite you to consider our long term opportunities These rare trades look to start fast with strong Zacks Ranks but carry through with double and triple digit profit potential Starting now you can look inside our home run value and stocks under 10 portfolios plus more |
VZ | Comcast CMCSA Q1 Earnings And Revenues Surpass Estimates | Comcast Corp NYSE S reported strong financial results in the first quarter of 2017 wherein both the top line and the bottom line outpaced the Zacks Consensus Estimate Importantly the company witnessed impressive subscriber gains in the video segment along with continued strong performance in the high speed Internet segment GAAP net income in the first quarter of 2017 came in at 2 566 million or 53 cents per share compared with 2 134 million or 43 cents in the prior year quarter Quarterly earnings per share of 53 cents outpaced the Zacks Consensus Estimate of 44 cents Quarterly total revenue was 20 463 million up 8 9 year over year and ahead of the Zacks Consensus Estimate of 20 113 million Operating costs and expenses totaled 13 431 million climbing 8 1 year over year Operating income came in at 4 530 million up 10 8 year over year Operating margin rose to 22 1 compared with 21 8 in the year ago quarter During the first quarter Comcast repurchased 20 4 million common shares for 750 million and paid dividends of 657 million In the first quarter of 2017 Comcast generated 5 656 million of cash from operations compared with 5 399 million in the year ago quarter Free cash flow in the reported quarter was 3 079 million compared with 2 805 million in the prior year quarter Cash and cash equivalents at the end of the first quarter of 2017 were 4 022 million up from 3 301 million at the end of 2016 Total debt at first quarter end was 61 785 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 50 flat with the 2016 end figure Cable Communications SegmentQuarterly total revenue of 12 912 million reflected a 5 8 rise year over year Adjusted EBITDA was 5 198 million advancing 6 3 year over year Within this segment Video revenues were 5 774 million up 4 3 from the prior year quarter High Speed Internet revenues totaled 3 606 million up 10 1 year over year Voice revenues were 863 million declining 3 6 year over year Advertising revenues totaled 512 million down 6 3 from the year ago quarter Business Services revenues were 1 490 million rising 13 6 year over year Other revenues were 667 million up 4 4 from the prior year quarter As of Mar 31 2017 Comcast had 25 131 million up 5 7 year over year high speed Internet customers 11 681 million up 0 9 year over year voice customers and 22 549 million up 0 7 year over year video customers The company added a net of 429 000 high speed Internet customers 42 000 video customers but lost 5 000 voice customers in the reported quarter The company gained 18 000 triple play subscribers 141 000 double play subscribers and 104 000 single play subscribers in the reported quarter NBC Universal SegmentQuarterly total revenue of 7 868 million displayed a 14 7 year over year increase Adjusted EBITDA was 2 017 million exhibiting a rise of a 24 4 year over year Within this segment Cable Networks revenues were 2 641 million up 7 6 year over year Broadcast TV revenues came in at 2 208 million rising 5 9 year over year Filmed Entertainment revenues were 1 981 million up 43 2 from the year ago quarter Theme Parks revenues were 1 118 million up 9 year over year Comcast Corporation NASDAQ CMCSA Price Consensus and EPS Surprise
Latest DevelopmentsRecently Comcast announced plans for its much hyped wireless venture The company s wireless service will be launched in mid 2017 under the Xfinity Mobile brand However stiff pricing competition in the industry is a genuine concern As we recently saw 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 joining in 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 wireless competition The company currently carries a Zacks Rank 3 Hold You can see The Best Worst of ZacksToday you are invited to download the full up to the minute list of 220 Zacks Rank 1 Strong Buys free of charge From 1988 through 2015 this list has averaged a stellar gain of 25 per year Plus you may download 220 Zacks Rank 5 Strong Sells Even though this list holds many stocks that seem to be solid it has historically performed 6X worse than the market |
VZ | Sprint S Incurs Wider than Expected Q4 Loss Revenues Top | Sprint Corp NYSE S reported mixed financial results for the fourth quarter of fiscal 2016 Net loss was wider than the Zacks Consensus Estimate while total revenue was well above the mark Quarterly net loss was 283 million or 7 cents per share compared with a net loss of 554 million or 14 cent per share in the year ago quarter However fourth quarter net loss per share of 7 cents was wider than the Zacks Consensus Estimate of a loss of 4 cents Quarterly total revenue came in at 8 539 million up 5 8 year over year and substantially above the Zacks Consensus Estimate of 7 966 million Service revenues were 6 116 million down 7 while Equipment revenues totaled 2 423 million up a substantial 61 9 Operating expenses were 8 069 million almost flat year over year Operating income was 470 million compared with a meagre 8 million in the year ago quarter Adjusted EBITDA improved 24 2 year over year to 2 680 million Adjusted EBITDA margin was 43 8 compared with 32 8 in the year ago quarter Cash FlowIn the fourth quarter of fiscal 2016 Sprint generated 1 268 million of cash from operations compared with 1 294 million in the prior year quarter Quarterly free cash flow was 394 million compared with a mere 3 million in the prior year quarter LiquidityAt the end of fiscal 2016 Sprint had 8 314 million of cash and marketable securities compared with 2 641 million at the end of fiscal 2015 Total debt outstanding at the end of 2016 was 39 654 million compared with 33 958 million at the end of fiscal 2015 At fiscal 2016 end the debt to capitalization ratio was 0 65 compared with 0 60 at the end of fiscal 2015 Wireless SegmentTotal segment revenue was 8 167 million up 6 7 year over year Postpaid revenues totaled 4 493 million down 6 3 Prepaid revenues were 1 067 million down 11 3 Wholesale revenues were 184 million up 18 7 Equipment revenues totaled 2 423 million up a substantial 61 9 Wireline SegmentSegment revenues were 480 million down 14 6 year over year Voice revenues totaled 143 million down 26 3 Data revenues were 39 million up 5 4 Internet revenues were 276 million down 12 7 Other revenues were 22 million up 46 6 year over year Subscribers StatisticsIn the reported quarter Sprint lost 118 000 postpaid subscribers but gained 125 000 wholesale and 180 000 prepaid customers As of Mar 31 2017 Sprint had 59 702 million wireless customers up 1 5 year over year This includes 31 576 million postpaid 11 992 million prepaid and 16 134 million wholesale customers Quarterly total retail postpaid churn rate was 1 75 up 1 7 year over year Total retail prepaid churn rate was 4 99 down 11 7 year over year Total retail postpaid ARPU average revenue per user was 47 34 down 8 4 year over year Total retail pretpaid ARPU was 30 08 up 8 5 year over year Sprint Corporation Price Consensus and EPS Surprise
OutlookSprint expects fiscal 2017 adjusted EBITDA of 10 7 billion 11 2 billion and operating income of 2 billion 2 5 billion Capital expenditures will be approximately 3 5 billion 4 billion This Zacks Rank 3 Hold stock faces fierce competition in the U S wireless market from the likes of Verizon Communications Inc NYSE VZ AT T Inc NYSE T and T Mobile US Inc NYSE T 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 | AT T signs deal to offer roaming services in Cuba | Reuters AT T Inc N T the No 2 U S wireless carrier said it had signed a deal with Cuba s state owned telecoms provider to offer direct roaming services to its customers visiting Cuba AT T said on Monday it would announce the pricing and the launch date for the service at a later date Reuters reported in March that AT T was trying to complete a mobile communications agreement with Cuba s telecoms monopoly Empresa De Telecomunicaciones De Cuba Etecsa The deal follows similar agreements between Etecsa and U S telecoms carriers including Sprint Corp N S Verizon Inc N VZ and T Mobile US Inc O TMUS after U S President Barack Obama s administration eased some sanctions on Cuba
Earlier phone calls between the United States and Cuba had to be routed mostly through other countries adding to costs and reducing the quality of calls |
VZ | Verizon CFO Shammo to retire at the end of 2016 | NEW YORK Reuters Verizon Communications Inc N VZ said on Thursday that its chief financial officer Francis Shammo plans to retire at the end of the year and will step down from his role effective Nov 1
Verizon said its board of directors appointed Matthew D Ellis who is currently senior vice president and CFO operations finance to succeed Shammo |
VZ | U S lawmakers to press AOL for Powell s State Department emails | By Jonathan Allen NEW YORK Reuters U S lawmakers said Thursday they will seek to recover the missing emails of Colin Powell from his time as U S secretary of state by going directly to AOL Inc whose email service he used for his work The decision came a few minutes after U S State Department officials testified in a hearing that the department never contacted AOL to recover the missing records despite repeated requests by the National Archives and Records Administration over the last year The hearing by the House Oversight and Government Reform Committee was the latest in the fallout from Hillary Clinton s decision to use an unauthorized private email system for official email while secretary of state Clinton the Democratic Party presidential candidate has said her decision was wrong but it has continued to dog her effort to defeat Republican rival Donald Trump in the Nov 8 election Her defenders have pointed to some similarities in Powell s earlier use of private email which drew fresh scrutiny at Thursday s hearing I don t get this it s ridiculous said Democrat Stephen Lynch a committee member This is the National Archives asking you to contact AOL but you didn t do that Patrick Kennedy the State Department s most senior management official said that Powell a Republican never replied to the department s request to ask AOL to attempt to recover his work emails which were not properly archived at the agency He said the department s lawyers decided to decline the National Archives requests that the department go to AOL directly We cannot make a request for someone else s records from their provider Kennedy said in his testimony That request has to be made by them Jason Chaffetz the Republican who chairs the committee then agreed to a request by the committee s most senior Democrat Elijah Cummings to try to recover the emails from AOL using a subpoena if necessary AOL is owned by telecommunications provider Verizon Communications Inc NYSE VZ A spokeswoman for Powell did not respond to a request for comment AOL did not immediately respond to questions and has previously said the its privacy policy precludes it from discussing a customer s emails The State Department did not have a fully functioning email system when Powell joined it in 2001 according to agency officials Powell has said he told technology officials to set up a computer with his AOL account in order to become the first secretary of state to use email
In contrast Clinton eschewed the official state gov email system when she took office in 2009 Department officials have said she would not have received permission for this had she asked |
CSCO | Stocks U S Futures Rise as Investors Shrug Off Inflation Data | Investing com Wall Street was set to rise on Thursday as investors shrugged off inflation concerns
The S P 500 futures rose 12 and a half points or 0 46 to 2 709 50 as of 6 40 AM ET 11 40 GMT while Dow futures increased 227 points or 0 91 to 25 090 0 Meanwhile tech heavy Nasdaq 100 futures was up 37 points or 0 56 to 6 724 25
Wall Street was volatile Wednesday morning after inflation data rattled markets but closed in the green The consumer price index rose to 0 5 in January beating expectations of a 0 3 rise according to the Labor Department The increase in inflation supports the Federal Reserve raising interest rates this year with many analysts expecting three rate increases
TripAdvisor Inc NASDAQ TRIP was among the biggest gainers in pre market trading surging 17 88 after it reported higher than expected growth in the fourth quarter despite a charge related to U S tax reform Cisco Systems NASDAQ CSCO rose 7 46 after its earnings beat expectations while Teva Pharma Industries Ltd ADR NYSE TEVA increased 6 83
Elsewhere SunPower Corporation NASDAQ SPWR fell 12 43 after reporting better than expected fourth quarter earnings but decreasing first quarter expectations due to the solar tariff imposed by U S President Donald Trump in January Meanwhile oil firms were down with BP LON BP PLC ADR NYSE BP inching down 0 64 and Royal Dutch Shell LON RDSa PLC ADR NYSE RDSa decreasing 1 24
In economic news jobless claims price producer index data the Empire State manufacturing survey and the Philadelphia Fed Manufacturing Business Outlook Survey are all releases at 8 30 AM ET 1 30 GMT Industrial production is scheduled for 9 15 AM ET 14 15 GMT with the NAHB Housing Market Index following at 10 00 AM ET 15 00 GMT
In Europe stocks were up Germany s DAX rose 89 points or 0 73 while in France the CAC 40 increased 69 points or 1 36 and in London the FTSE 100 was up 39 points or 0 55 Meanwhile the pan European Euro Stoxx 50 gained 23 points or 0 70 while Spain s IBEX 35 surged 64 points or 0 67
In commodities gold futures fell 0 27 to 1 354 30 a troy ounce while crude oil futures were up 0 17 to 60 70 a barrel The U S dollar index which measures the greenback against a basket of six major currencies fell 0 27 to 88 67 |
CSCO | FTE Networks bags contract worth 27 5M | FTE Networks FTNW 4 1 has been awarded two new projects totaling 27 5M by two multi national fortune 500 companies The services include the creation of intelligent workplaces by providing state of the art technology infrastructure and fit out services The projects are expected to begin in Manhattan in the Q1 and projected to be completed over the next 18 months CEO Michael Palleschi I am extremely pleased with our steady flow of contract awards and the strengthening of our customer portfolio from both our existing customer base and new customer contracts The continued expansion of FTE s project portfolio with esteemed companies signals the market s growing enthusiasm for FTE Our visionary combination of technology and infrastructure supports the increasing demand for intelligent buildings by offering a comprehensive set of innovative solutions Our dynamic product suite and services ensure tenants workforces and buildings are utilizing state of the art facilities that provide faster and better compute to the edge solutions Now read |
VZ | FCC To Scrap Stringent Business Data Service Regulations | Yesterday the U S telecom regulator Federal Communications Commission FCC voted 2 1 to withdraw most of the stringent regulatory requirements to reform the business data service BDS market The BDS reform report was introduced by the previous FCC body that was led by Tom Wheeler under the Democratic rule However the new FCC reconstructed by President Trump and headed by Ajit Pai has ushered a less restrictive regime
The BDS market where telecom operators and cable MSOs multi service operators provide a host of network related services to business entities of various sizes has been a lucrative source of revenues in the recent years for service providers Significantly these service providers have been generating handsome revenues by frequently charging steep prices from small and medium businesses At present BDS is a 45 billion market opportunity per annum
In 2016 the FCC proposed rules to regulate pricing in the market citing low competition The proposals include 1 removal of tariffs 2 not classifying telecom providers as either dominant or non dominant carriers 3 implementing a new Competitive Market Test to determine where competition exists 4 imposing technology neutral regulations 5 instituting price caps on access to legacy TDM networks in non competitive markets 6 setting wholesale prices in relation to retail prices for any given service in non competitive markets
Yesterday s voting outcome will substantially ease the regulatory requirements in the business data services market However some price caps in areas with little competition will be retained Welcoming the voting result Pai said that stringent regulations would be detrimental to competition and future investment need for technological upgrade
Gainers from FCC s New Decision
The BDS reform proposals adopted by the FCC under the previous regime have been criticized by industry players and several industry organizations They argued that being that the BDS regulations will cause more harm than good discouraging further network investments costing jobs and reducing economic output Incumbent service providers like AT T Inc NYSE T Verizon Communications Inc NYSE VZ CenturyLink Inc NYSE T and Comcast Corp NYSE S together with several other telecom operators and cable MSOs vehemently opposed this proposal These companies are set to gain the most from today s FCC decision
On the other hand the vote comes as a blow to Sprint Corp NYSE S and other firms that backed a 2016 FCC plan under Wheeler s chairmanship that would have cut business data prices All the stocks mentioned above currently carry 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 | ETFs In Focus After Verizon s Downbeat Q1 Results | Shares of Verizon Communications NYSE VZ dropped 1 08 at market close on Thursday April 21 2017 The company reported a 7 8 sequential decrease in revenues It reported revenues of 29 814 billion in the first quarter of 2017 compared with 32 340 billion in the fourth quarter of 2016 and 32 171 billion a year earlier It failed to beat the Zacks Consensus Estimate on both earnings and sales in the first quarter of 2017 read
Q1 Performance
Verizon reported non GAAP earnings per share of 0 95 which fell short of the Zacks Consensus Estimate of 0 98 Moreover Verizon s first quarter revenues also missed Zacks Consensus Estimate of 30 504 billion
Wireless Business Performance
Verizon reported revenues of 20 878 billion in its wireless segment compared with a 22 004 billion in the year ago quarter The telecom company attributed this decline of 5 1 primarily to its loss of 307 000 postpaid customers which included phone losses to the tune of 289 000 It also stated that it lost 17 000 prepaid customers in the quarter
Wireline
Wireline segment revenues dropped to 7 876 billion from 7 923 billion a year earlier However some respite was provided by the company s Fios revenues which grew to 2 891 billion from 2 761 a year earlier The company expects to capitalize on customer growth in this segment Net additions in Fios digital connections were 14 000 while additions to Fios Internet subscribers came to 35 000
Outlook
Verizon expects its 2017 organic revenues to be flat with 2016 levels It expects its consolidated capital spending to be in the range of 16 8 to 17 5 billion On the tax front Verizon expects a full year effective tax rate of 34 36 In the current scenario let s have a look at some ETFs that have a relatively high exposure to Verizon
Vanguard Telecommunication Services ETF MU VOX
This ETF is one of the most popular funds in the telecom space read
It has AUM of 1 40 billion and charges 10 basis points as fees per year The fund has a 22 27 exposure to Verizon Communications Inc as of April 19 2017 The fund returned 5 52 in the last one year but lost 2 29 in the year to date time frame as of April 20 2017 The fund was down 0 21 at market close on April 20 2017 VOX currently has a Zacks ETF Rank 3 Hold with a Medium risk outlook
Fidelity MSCI Telecommunication Services ETF
This ETF provides exposure to the U S telecom space at a really low expense ratio
It has AUM of 139 7 million and charges 8 basis points as fees per year The fund has a 21 19 exposure to Verizon Communications Inc as of April 19 2017 The fund returned 8 89 in the last one year and 1 87 in the year to date time frame as of April 20 2017 The fund was down 0 55 at market close on April 20 2017 FCOM currently has a Zacks ETF Rank 3 with a Medium risk outlook read
iShares Global Telecom ETF
This ETF provides exposure to the global telecom industry
It has AUM of 301 65 million and charges 47 basis points as fees per year Considering the top three holdings from a geographical perspective the fund has 38 77 exposure to the U S 16 57 to Japan and 8 34 to United Kingdom The fund has 16 18 exposure to Verizon Communications Inc as of April 19 2017 The fund lost 5 53 in the last one year but gained 0 87 in the year to date time frame as of April 20 2017 The fund was up 0 49 at market close on April 20 2017 IXP currently has a Zacks ETF Rank 3 with a Medium risk outlook
Source Yahoo NASDAQ YHOO Finance
To Conclude
Verizon fell short of the consensus estimate on both earnings and revenues primarily due to a decline in postpaid customers However its outlook remains strong and it expects a turnaround in its wireless segment and strong performance in the Fios segment As a result we believe it is best to remain on the sidelines for now
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 |
VZ | France And U S Dividend 2 ETFs Trading With Outsized Volume | In the past trading session the performance of U S stocks was not satisfactory Among the top ETFs investors saw AX SPY lose 0 32 V DIA lose 0 13 and lose 0 02 on the day
Two more specialized ETFs are worth noting in particular though as both saw trading volume that was far outside of normal In fact both of these funds experienced volume levels that were more than triple their average for the most recent trading session This could make these ETFs the ones to watch out for in the days ahead to see if this trend of extra interest continues
Volume 3 94 times average
This France ETF was under the microscope on Friday April 21 2017 as nearly 3 25 million shares moved hands This compares to an average trading volume of 827 280 shares and came as EWQ lost 0 08 in the session
The significant rise in volume was largely the result of increased uncertainty in the markets because of the French presidential elections The first run off was held on Sunday April 23 2017 Emmanuel Macron and Marine Le Pen emerged victorious and will be facing each other in the second run off on May 7 2017 For the month EWQ is up 0 96 The fund currently has a Zacks ETF Rank 3 Hold with a Medium risk outlook
TO PEY Volume 6 92 times average
This U S Dividend ETF was in focus on Friday April 21 2017 as roughly 2 82 million shares moved hands compared to an average of roughly 407 320 shares We also saw some share price movement as shares of PEY lost 0 12 in the session
The fund has high exposure to Vector Group NYSE VGR and Verizon Communications NYSE VZ with 3 66 and 2 54 allocation respectively The higher than average trading volume in the ETF can largely be attributed to the increased trading in the Vector group stock following the sale of 100 000 shares by its director Bennett S Lebow Moreover Verizon Communications reported disappointing 2017 first quarter earnings due to which shares of Verizon lost 2 4 on April 21 2017 For the month PEY is up 0 24 while the fund currently has a Zacks ETF Rank 3 with a Medium risk outlook
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 |
VZ | Verizon to buy vehicle management company Fleetmatics for 2 4 billion | By Malathi Nayak Reuters Verizon Communications Inc NYSE VZ said on Monday it would buy GPS vehicle tracking firm Fleetmatics Group Plc for about 2 4 billion in cash to bolster its expansion into the connected vehicle and fleet management market Verizon the No 1 U S wireless company will pay 60 per share a premium of about 40 percent to Fleetmatics closing price on Friday The deal is expected to close in the fourth quarter of 2016 Shares in Fleetmatics soared 39 percent to 59 60 while Verizon dipped 0 7 percent to 55 01 Fleetmatics with North American headquarters in Waltham Massachusetts develops software that shows fleet operators vehicle location fuel usage speed mileage and other information on their mobile workforce including a driver s behavioral data As the market for smartphones and mobile devices gets saturated Verizon and its biggest rival AT T Inc NYSE T are hoping that connecting more objects to their networks will provide new revenue The acquisition helps Verizon capture market share in the highly fragmented and pretty under penetrated fleet and mobile workforce management business Andr s Irlando chief executive officer of Verizon Telematics said in an interview The unit connects vehicles to its wireless network and offers applications to track and manage them On Friday Verizon Telematics closed another deal to buy California based Telogis which builds software to track commercial vehicles and navigation software used by automakers such as Ford Motor NYSE F Co Terms were not disclosed Verizon Telematics also offers its own fleet management service called Networkfleet Both Telogis in the enterprise space and Fleetmatics in the small and medium sized businesses space have what s widely considered best in class technology software platforms as well as products and services Irlando said Fleetmatics international presence in regions such as Western Europe and Australia helps Verizon expand the global reach of its telematics business Irlando added In May Fleetmatics posted revenue of 78 9 million for the first quarter up 21 percent from a year earlier Verizon does not break out its telematics unit revenues it is reported under sales from its larger Internet of Things business Aimed at connecting to the internet everything from household devices to industrial machines the business posted revenue of 205 million in the second quarter ended June 30 2016 up 25 percent from a year ago Verizon said last week
Verizon which has been seeking to add new revenue streams said last week it would buy Yahoo NASDAQ YHOO Inc s core internet assets for 4 8 billion to make a push into the digital media and ad business |
VZ | Oil traders prepare to bid fond farewell to Yahoo Messenger | By Henning Gloystein SINGAPORE Reuters As commodity markets continued dealing on Friday traders were lamenting the imminent demise of the version of Yahoo NASDAQ YHOO Messenger that has been their main communication tool since the late 1990s The software was still operating and in use during London trading hours even though Yahoo Inc had set Aug 5 as the date for shutting down the standalone version of Messenger which many oil industry users are reluctant to give up You have no idea how much I ll miss Yahoo Messenger said a senior oil trader in Singapore who has been in the business for 20 years I built up hundreds of contacts on it over more than a decade I have Yahoo friends I have never met but with whom I spent many hours bantering and joking It also made me a lot of money Now that it s gone I could cry With Messenger s end the oil industry has to deal with a fragmented communication market which some say will force players back to the telephone Yahoo was great as an aggregator for all commodity participants so I think any cross broking from one messenger platform may mean people use the old friend the phone said Matt Stanley a fuel oil broker at Freight Investor Services in Dubai So in some kind of ironic way you may see stronger relationships formed now people have to interact the old school way he added FRAGMENTATION Yahoo which in July announced the sale of its core business unit to Verizon Communications Inc NYSE VZ took the oil industry by storm in the late 1990s Its free instant messaging technology revolutionized the industry helping usher in a new era of high speed communication that changed the way millions of barrels of oil traded daily It was useful to exchange some information really quickly without having to spend 15 minutes on the phone Olivier Jakob managing director at PetroMatrix in Zug Switzerland said of Yahoo But the online follow up version to Yahoo s standalone messaging software cannot be used by the industry It fails to meet compliance standards because conversations cannot be saved locally As a result oil traders brokers analysts and also reporters covering the oil industry have been scrambling for alternatives of which there are plenty They include ICE s Instant Messaging Symphony in which 18 of the world s biggest financial institutions hold stakes Bloomberg Messenger Thomson Reuters Eikon Messenger Twitter and Facebook s WhatsApp It s difficult to say if there is one consensus move to another platform Jakob said It will take time The inevitable fragmentation of the market is seen as a nuisance by most Let s face it it s not the end of the world But Yahoo s beauty was that everybody used one platform said one Asian fuel broker
Now we all use several platforms and that s a bit of a pain |
VZ | Verizon eyes automotive technology market could spur other deals | By Malathi Nayak NEW YORK Reuters Verizon Communications NYSE VZ Inc s recent purchases of two vehicle tracking firms could spark more deals as the No 1 wireless provider and rival AT T NYSE T see fleet management as a source of growth analysts said Faced with a saturated wireless market several telecom companies are looking beyond their main phone business for ways to extract more value from existing networks Just last month Verizon bought Yahoo NASDAQ YHOO for 4 8 billion diving into digital media and advertising But Verizon also recently acquired privately held connected vehicle technology firm Telogis for an undisclosed sum and said it would buy GPS vehicle tracking company Fleetmatics Group Plc for 2 4 billion Telecom providers are moving towards acquiring eyeballs or a fleet of people that can use applications built on top of the wireless network said Richard McBee chief executive officer of Canadian communications technology company Mitel Networks Corp The fleet and mobile workforce management business connects fleet vehicles to the wireless network and collects data like driver behavior to manage vehicles and workers The business delivers a source of recurring subscription based revenue from clients such as large logistics companies and local delivery services After buying Fleetmatics and Telogis Verizon could be on the lookout for a security or software technology firm to pair with its data heavy automotive technology business Susan Beardslee analyst at ABI Research said Potential targets could be Israel based cyber security firm Argus and software management company Movimento she added Rival AT T has its own fleet management business and could look into buying fleet tracking firms such as Teletrac Navman Omnitracs Geotab and Zonar analysts said Verizon Argus Movimento AT T Omnitracs and Zonar Systems declined to comment Teletrac Navman and Geotab could not be immediately reached for comment While Verzion s second quarter revenue of 31 billion dwarfs that of Telogis and Fleetmatics both firms are expected to grow quickly Fleetmatics reported 285 million in sales last year and is seen growing at an annual revenue rate of 15 percent to 20 percent Fleet management businesses may also get a boost from a recent federal regulation that mandates that companies digitally record driver work hours with electronic devices analysts said
It will be interesting to see how they leverage up here in coming years said Angelo Zino an analyst at S P Capital IQ But I wouldn t expect Fleetmatics to be the last of their deals |
VZ | Arianna Huffington to leave Huffington Post to focus on start up | By Malathi Nayak Reuters Huffington Post co founder Arianna Huffington said on Thursday she would step down as editor in chief of the news site that bears her name to focus on running her new venture health and wellness startup Thrive Global Huffington said on Twitter that she thought the Huffington Post which made its debut in 2005 would be my last act but now wanted to concentrate on the new venture Thrive Global s mission is to change the way we work live by ending the collective delusion that burnout is a necessary price for success she tweeted In June Huffington 66 who recently wrote books on health and sleep related issues such as Thrive and The Sleep Revolution announced the upcoming launch of Thrive Global It will offer services to companies to improve the well being of employees by providing training seminars e courses coaching and other support It recently closed a Series A funding round ahead of a launch in November Verizon Communications Inc N VZ owns the Huffington Post through AOL which bought the liberal American online news aggregator and blog for 315 million in February 2011 After Verizon bought AOL in June 2015 for 4 4 billion Huffington renewed her contract to stay on as the site s editor in chief and president through 2019 As Thrive Global moved from an idea to a reality with investors staff and offices it became clear to me that I simply couldn t do justice to both companies she said in a statement In addition to aggregating news the Huffington Post features original reporting There was no immediate word on who would succeed Huffington as editor in chief The Huffington Post which has yet to turn a profit for AOL has more than 100 million unique visitors per month AOL s takeover of the Huffington Post had its rocky moments in part because of tensions between AOL Chief Executive Tim Armstrong and Huffington over issues such as allocation of resources Reuters has reported Wireless service provider Verizon bought AOL including its ad technology tools and content brands such as the Huffington Post and TechCrunch to make a push into digital media and advertising It said last month it would buy web portal Yahoo Inc O YHOO for 4 8 billion
Thrive Global s Series A funding round was led by Lerer Hippeau Ventures a venture capital fund of Huffington Post co founder Ken Lerer Other investors include entrepreneur Sean Parker Alibaba Group Holding Ltd s N BABA founder Jack Ma s investment firm Blue Pool Capital Greycroft Partners and Advancit Capital |
CSCO | Cisco 3 as Nomura sees 16 upside | Cisco Systems NASDAQ CSCO is a top gainer this morning up 3 as Nomura upgrades shares to Buy The firm raised its price target to 46 from 33 that s 16 upside from Friday s close and and 13 from here Meanwhile RBC Capital has raised its price target to 44 Shares have appreciated 29 over the past 12 months Now read |
CSCO | Olympic Destroyer malware targeted Pyeongchang Games firms | By Jim Finkle Reuters Several U S cyber security firms said on Monday that they had uncovered a computer virus dubbed Olympic Destroyer that was likely used in an attack on Friday s opening ceremony of the Pyeongchang Winter Games Games Organizers confirmed the attack on Sunday saying that it affected internet and television services but did not compromise critical operations Organizers did not say who was behind the attack or provide detailed discussion of the malware though a spokesman said that all issues had been resolved as of Saturday Researchers with cyber security firms Cisco Systems Inc O CSCO CrowdStrike and FireEye Inc O FEYE said in blog posts and statements to Reuters on Monday that they had analyzed computer code they believed was used in Friday s attack All three security companies said the Olympic Destroyer malware was designed to knock computers offline by deleting critical system files which would render the machines useless The three firms said they did not know who was behind the attack Disruption is the clear objective in this type of attack and it leaves us confident in thinking that the actors behind this were after embarrassment of the Olympic committee during the opening ceremony Cisco said in its blog The attack took the Olympics website offline which meant that some people could not print out tickets and WiFi used by reporters covering the games did not work during the opening ceremony according to Cisco The attack did not affect the performance of drones which were initially scheduled to be included in the opening ceremony but later pulled from the program organizers said in a statement
The drone light show was canceled because there were too many spectators standing in the area where it was supposed to take place the statement said |
CSCO | Day Ahead Top 3 Things to Watch | Investing com Here s a preview of the top 3 things that could rock markets tomorrow
1 Wholesale Inflation Manufacturing Labor Data
Thursday ushers in a deluge of economic reports which could either add to the narrative of a strengthening US economy or dent investor expectations for solid first quarter economic growth
Inflation at the wholesale level as measured by the producer price index is expected to have rebounded 0 4 in January following an unexpected 0 1 fall in December The wholesale data will likely attract added investor attention as they are expected to parse the report for signs of further price pressures after Wednesday s consumer inflation report topped economists forecasts
An uptick in medical services prices was one of the main components that contributed to the rise in consumer prices Amherst said traders should monitor the PPI report closely to establish whether the rise in medical services prices was transitory
The Labor department releases its weekly count of the number of individuals who filed for unemployment insurance for the week ended Feb 10 Economist forecast initial jobless claims rose by 9 000 to 230 000
Economists forecast the Philly Fed manufacturing index for February to show a reading of 21 1 slightly below the 22 2 reading in the previous month While the New York Fed s Empire State manufacturing index a gauge of New York area manufacturing is expected to show a decline in February compared to the previous month
The report comes as sentiment on US equities appears to have turned positive following the recent selloff as S P 500 closed in positive territory for the year on Wednesday as financials and tech soared
2 Bitcoin Eyes 10 000 Test as Inflows Into Crypto Market Continue
Bitcoin rose 6 40 to 9 227 on Wednesday continuing its recovery after falling to 6 000 last week The popular digital currency has rallied 50 from last week s slump as inflows into the industry remained steady
The total cryptocurrency market cap rose more than 7 to 450 billion at the time of writing from roughly 420 billion Tuesday suggesting demand for cryptocurrencies has renewed as fears of regulation begin to fade
Bitcoin however is not the only crypto benefitting from new inflows into the market as Ripple s XRP rose 12 87 to 1 12746
3 Cisco To Rally on Open
Shares of Cisco Systems Inc NASDAQ CSCO rallied in aftermarket hours after the company posted fiscal second quarter earnings that beat on both the top and bottom lines
Cisco reported second quarter revenue of 11 9 billion up 3 year over year beating analyst consensus of 11 8 billion Non GAAP earnings were 0 63 per share up from 0 57 per share a year ago and ahead of expectations of 0 59 per share
The company hiked its quarterly dividend 14 to 0 33 per share and approved a 25 billion increase to its stock repurchase program
Cisco said it expects third quarter revenue to grow 3 to 5 year over year with non GAAP earnings at 0 64 to 0 66 per share
That was ahead of the Wall Street estimates of 12 13 billion in revenue and earnings of 0 63 per share
Cisco rose 5 23 to 44 20 in after market hours after closing at 42 09 on Wednesday |
CSCO | Cisco tops estimates as turnaround takes center stage | By Munsif Vengattil Reuters Cisco Systems Inc NASDAQ CSCO reported its first rise in quarterly revenue in more than two years and forecast upbeat current quarter profit as the network gear maker s years long efforts to transform into a software focused company begins to pay off Shares of the Dow component which also benefited from growth in its switching business jumped 7 1 percent to 45 09 in after market trading on Wednesday Cisco raised its buyback program by 25 billion taking the total to about 31 billion The company said it plans to bring back 67 billion of funds held overseas in the third quarter of fiscal 2018 by taking advantage of the recent changes to the U S tax laws However the new tax laws led to an 11 1 billion charge pushing the company to post a loss for the second quarter Faced with sluggish demand for its traditional switches and routers business from telecom carriers Cisco has been moving to a software and subscription focused model We are clearly seeing the results of the strategy we ve articulated over the last 10 quarters Chief Executive Chuck Robbins said on a post earnings call Revenue from its infrastructure platforms category which includes switching routing and data center businesses rose 2 percent to 6 7 billion The company is also betting on subscription services for a recurring stream of revenue I m most impressed at the growth in software subscriptions as Cisco five years ago was primarily about hardware said Patrick Moorhead principal analyst at Moor Insights and Strategy Cisco has also doubled down on M As to build up its software business Since Robbins took charge in July 2015 the company has acquired Internet of Things firm Jasper Technologies software makers Broadsoft and AppDynamics Inc among others The Broadsoft acquisition which closed earlier this month helped boost Cisco s third quarter adjusted profit The company forecast adjusted profit between 64 cents and 66 cents per share above analysts estimate of 63 cents Cisco posted a net loss of 8 8 billion or 1 78 per share in the second quarter ended Jan 27 compared with a profit of 2 3 billion or 47 cents per share a year earlier Excluding items the company earned 63 cents per share Revenue rose 2 7 percent to 11 9 billion Analysts on average had expected a profit of 59 cents per share and revenue of 11 8 billion according to Thomson Reuters I B E S |
VZ | Crown Castle CCI To Acquire Wilcon Boosts Fiber Assets | Crown Castle International Corp NYSE CCI a leading wireless communication tower operator in the U S recently inked a deal to acquire privately held Wilcon Holdings LLC Wilcon for approximately 600 million from Pamlico Capital and other unit holders of Wilcon Wilcon is the premier service provider of dark fiber lit transport internet access and colocation services in Southern California Currently it owns 1 900 route miles of fiber in Los Angeles and San Diego On the completion of the proposed acquisition Crown Castle will attain ownership rights of over 28 000 route miles of fiber The buyout is estimated to be completed in the third quarter of 2017 In the first year of Crown Castle s ownership the transaction is expected to contribute nearly 40 million to gross margin and approximately 10 million of general and administrative expenses Booming ProspectsWe believe that the acquisition of Wilcon will enhance Crown Castle s dark fiber capabilities in Southern California for small cell backhaul We look forward to seeing how Crown Castle benefits in the upcoming days by leveraging Wilcon s dark fiber assets Crown Castle s ongoing efforts in repositioning itself from being a tower company to a fiber provider focused on the small cell opportunity looks impressive Over the last two years Crown Castle 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 Notably the present market scenario finds wireless operators ramping up their small cell plans to improve service capabilities in large markets Verizon Communications Inc s NYSE VZ plans to deploy small cells using the 3 5GHz spectrum is in sync with its small cell densification and expansion of its dark fiber footprint strategy for 5G technology trials and launch Accordingly Crown Castle seeks to pursue small cell deployments for their wireless customers in order to enhance their networks to meet the whooping demand for high speed high capacity wireless services Wireless services are rapidly gaining ground based on technological advancements and network upgradations Much of the infrastructure and upgrades require effective site management of cell towers and equipment Crown Castle effectively addresses this opportunity as over 90 of its quarterly revenues come from wireless service providers like Verizon Communications AT T Inc NYSE T and T Mobile US Inc NYSE T Crown Castle had acquired 9 700 wireless towers from AT T and taken over 7 200 wireless towers of T Mobile US Zacks Rank Price PerformanceCrown Castle currently carries a Zacks Rank 3 Hold You can see Crown Castle s stock rallied 12 2 over the past three months outperforming the Zacks categorized industry s gain of 5 1 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 | 3 Things To Watch When Verizon And AT T Report Earnings | by Clement Thibault
AT T NYSE T and Verizon Communications NYSE VZ two American multinational telecommunication conglomerates are set to report earnings in the next few days Verizon will report its Q1 2017 earnings on Thursday April 20 before the market opens while AT T will report Q1 17 earnings on Tuesday April 25 before the open as well
AT T is expected to report EPS of 0 75 on 40 7 billion in revenue
Wall Street s consensus for Verizon is 0 98 in EPS and 30 5 billion in revenue
In the past telecom behemoths such as AT T or Verizon provided communication services primarily in the form of voice text and internet landline connectivity However these companies as well as the sector in which they operate have evolved in recent years and are now focusing more on everything wireless providing business solutions even content in the cases of both AT T and Verizon
We appear to be at a crossroad for telecom companies the shifting business environment is providing telecoms with opportunities through which to expand beyond their original core as never before For this reason now may be the exact right time to take a long hard look at two of the sector s giants
1 Lackluster Stocks Stellar Dividends
One thing to immediately acknowledge the performance of both stocks has been to put it mildly lackluster over the past four years In April 2013 Verizon traded within a range of between 48 and 54 dollars a share Yesterday Verizon closed at 49 22 Thus very little to no capital appreciation at all over the past four years
AT T s story isn t all that different It traded in a range of between 36 and 39 a share during the same month in 2013 It closed at 40 25 last night Any investor who bought these stocks just for the capital gains has by now been sorely disappointed
However savvy investors buy and hold shares of these two companies not for the share price movement but rather for their stellar dividends AT T currently yields a hefty 4 86 which it has been maintaining and growing for the past 32 years This exemplary payout history has made the stock a Dividend Aristocrat the designation given to S P 500 stocks that have increased their dividends consecutively for 25 plus years
Verizon currently yields 4 73 and has consistently grown its dividend for the past 10 years So while shares didn t appreciate stakeholders were still rewarded for their investment That s likely one of the reasons Warren Buffet continues to retain shares of the stock
2 Business Performance
Verizon s business is divided into two segments Wireless which includes the company s wireless network as well as phone and data divisions and Wireline which consists of broadband and fiber operations including Fios Verizon s fiber optic network
The Wireless segment accounting for over 70 of Verizon s income has struggled throughout 2016 registering lower operating revenue 89 billion vs 91 billion 2 7 and lower operating income 29 9 billion vs 29 8 billion 0 4 though that was partially offset by lower operating expenses However the trouble is more pronounced when looking at the slow down in new customer expansion Verizon added 2 28 million customers in 2016 compared with 4 5 million in 2015 The churn percentage of canceled subscriptions from within the entire customer base has also popped from 0 96 in 2015 to 1 01 in 2016 including an especially bad quarter just recently when churn increased to 1 10 in Q4 2016
While Wireline suffered from a 2 3 drop in revenue during 2016 from 32 to 31 3 billion it actually returned a 40 million profit on the year after losing 521 million during the previous year Customer additions were also on the decline from 677 thousand net adds in 2015 to just 317 thousand in 2016 53 less
AT T s business is divided into three segments Business Solutions Entertainment Group which includes pay TV and high speed internet and Consumer Mobility which is the equivalent of Verizon s Wireless segment The Business Solutions segment remained flat for the year with wireless services and strategic services VPN and other internet services picking up the business leaving AT T legacy voice services which are also part of the Business Solutions segment
The Entertainment Group got a boost from the DirecTV integration in Q3 2016 so a YoY comparison is harder to make but early numbers show growth of 3 4 in video entertainment revenue
The Consumer Mobility segment is suffering even more than Verizon s equivalent division with a 6 5 decline in revenue over the past year from 35 5 billion to 32 2 billion However lower operating expenses more than made up for the losses as the segment finished with 9 8 billion in income 0 1 over last year Net customer adds are also down from 463 thousand to 359 thousands 22
3 Acquisitions and Growth
As we ve shown above both companies have been struggling to grow organically over the past few years a key reason for the inevitable share price stagnation Consequently in pursuit of new routes to profitability they ve both been on acquisition rampages
Notable deals for Verizon include the purchase of AOL in May 2015 for 4 4 billion Yahoo NASDAQ YHOO in July 2016 for 4 8 billion and Fleetmatics a fleet management software company in August 2016 for 2 4 billion
Notable deals for AT T include DirecTV acquired in July 2015 for 48 5 billion Time Warner in October 2016 for 85 billion 108 billion including debt and Straight Path Communications for its 5G licenses earlier this month for 1 6 billion
The difference between the two companies becomes clearer when you consider their recent acquisition history Verizon is dipping its toes into media and advertising markets by buying companies that are mostly past their prime hoping for a good deal on still valuable assets such as brand names although a general is also in the works With its recent acquisitions Verizon will own The Huffington Post AOL TechCrunch Tumblr Flicker and more
AT T on the other hand is betting big and going all in on content including television streaming and video content These moves should make every AT T investor nervous The company is adding a considerable amount of debt to its books in order to try and create a media empire by purchasing control of both the content and distribution sides of the business
It s an integrated approach that AT T executives believe will succeed over time For example the acquisition of Straight Path while small could be what allows AT T to control the 5G space and would benefit all of its other endeavors too since it would allow AT T to transfer data such as video a hundred times more quickly than before
Comparing the ambitions of each company it appears that AT T s moves have the bigger potential upside though of course that also comes with greater risk AT T has 9 billion in debt due every year for the foreseeable future but its massive Future Free Cash Flow of 26 billion should be able to cover this as well as the dividend which cost the company 11 8 billion in 2016 This would still leave over 5 billion for the company s use after those two major expenses
Conclusion
Of the two companies AT T is the one we like best It s more diversified has a stronger business customer base is less affected by the price war going on among retail phone and data service providers and overall simply has more room for top and bottom line growth in the near mid and longer term
However a company is only as good as the price you pay for it Luckily though the stock is priced at nearly its all time high AT T s valuation isn t excessive It currently has a P E ratio of 19 a Price to Book ratio of 2 and a Price to Free Cash Flow of 14 Surprisingly both AT T s Price to Book and Price to FCF are below the industry average
Verizon s P E is 15 lower than AT T s but its Price to Book ratio is 8 8 and its price to FCF is 38 8 Note however that Verizon recently changed accounting methods making its numbers look worse than they actually are
Still AT T is the better value considering its growth potential Taking everything into account we d give Verizon a hold though AT T is most definitely a buy Our ideal entry point for AT T would be 37 but everything under 40 seems reasonable |
VZ | Verizon VZ Lags Q1 Earnings And Revenues Estimate | Verizon Communications Inc NYSE VZ is the largest telecom operator in the U S providing high end wireless and wireline services to individuals business enterprises and government agencies Spectrum crunch is a major issue in the U S telecom industry and Verizon continues to operate in a saturated and competitive wireless market Expenses related to Verizon s promotional plans and lucrative discounts to lure more customers might impact the wireless segment s EBITDA and EBITDA service margins in the to be reported quarter The company s wireline division continues to suffer from persistent losses in access lines owing to competitive pressure from voice over Internet protocol VoIP service providers and aggressive triple play voice data video offerings from cable companies Nevertheless Verizon s decision to launch FiOS Prepaid plan FiOS Internet service and zero rate its FiOS Mobile App data should help it gain subscribers in the wireline segment in the to be reported quarter Verizon s unlimited data plans have already heated up the wireless industry Moreover Verizon Communications strengthened foothold in the Internet of Things IoT and fiber space bode well Zacks Rank Verizon currently carries a Zacks Rank 3 Hold You can see The company has generated negative average earnings surprise of a mere 0 07 in the previous four quarters We have highlighted some of the key stats from this just revealed announcement below Earnings The Company lags first quarter 2017 earnings Our consensus called for an adjusted EPS earnings per share of 98 cents while the company reported adjusted EPS of 95 cents Revenue Verizon reported total revenue of 29 814 million underperforming the Zacks Consensus Estimate of 30 504 million Key States to Note In the first quarter Verizon lost net 0 307 million retail postpaid connections Retail postpaid churn increased to 1 15 from 0 96 in the prior year quarter At the end of the first quarter of 2017 Verizon had 113 913 million retail connections up 1 2 year over year Stock Price At the time of writing the stock price of Verizon was down nearly 2 64 in the pre market trade on NYSE Clearly the initial reaction to the release is negative The company missed the Zacks Consensus Estimate for both the top and bottom lines In the first quarter net loss of postpaid retail connection was 0 307 million compared with a net gain of 0 640 million subscribers in the year ago quarter We believe these are the primary reasons behind this initial negative sentiment Verizon Communications Inc Price and EPS Surprise
Check back later for our full write up on this Verizon earnings report later 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 | Verizon VZ Misses Earnings And Revenue Estimate In Q1 | Verizon Communications Inc NYSE VZ reported disappointing financial numbers in the first quarter of 2017 wherein both the top and bottom lines lagged the Zacks Consensus Estimate Quarterly GAAP net income was 3 553 million or 85 cents per share compared with 4 430 million or 1 06 per share in the year ago quarter Adjusted earnings per share came in at 95 cents in the reported quarter below the Zacks Consensus Estimate of 98 cents Quarterly total revenue decreased 7 3 year over year to 29 814 million missing the Zacks Consensus Estimate of 30 504 million Total operating expenses in the first quarter of 2017 were 22 633 million down 6 6 year over year Operating income came in at 7 181 million compared with 7 942 million in the year ago quarter Adjusted EBITDA was 11 114 million compared with 12 010 million in the prior year quarter Cash Flow LiquidityIn the first quarter of 2017 Verizon generated 1 681 million of cash from operating activities compared with 7 497 in the year ago quarter Free cash flow in the reported quarter was a negative 1 386 million compared with a positive 4 110 million in the prior year quarter At the end of the first quarter of 2017 Verizon had 4 307 million in cash and 116 546 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 82 at the end of the first quarter of 2017 compared with 0 81 at the end of 2016 Wireless SegmentTotal revenue was 20 878 million down 5 1 year over year Service revenues dropped 6 1 to 15 778 million Equipment revenues decreased 4 8 to 3 764 million Other revenues totaled 1 336 million up 7 7 Operating expenses decreased 2 3 to 13 802 million Operating income declined 10 2 to 7 076 million Quarterly operating income margin was 33 9 compared with 35 8 in the year ago quarter Segment EBITDA decreased 7 5 to 9 414 million EBITDA margin was 45 1 compared with 46 2 in the prior year quarter At the end of the first quarter of 2017 Verizon had 113 913 million retail subscribers up 1 2 year over year Of the total retail postpaid subscriber count was 108 483 million up 1 2 and retail prepaid user count was 5 430 million down 0 5 During the reported quarter the company lost 0 307 million postpaid customers compared with a gain of 0 640 customers in the prior year quarter while prepaid customer count decreased by 0 017 million Quarterly retail postpaid churn rate was 1 15 compared with 0 96 in the year ago quarter whereas total retail churn rate was 1 39 as against 1 23 in the year ago quarter Of the total activated phones smartphones accounted for 94 5 compared with 92 5 in the prior year quarter Retail postpaid ARPA average revenue per account was 136 98 compared with 145 34 in the year ago quarter Wireline SegmentTotal revenue at the segment was 7 876 million down 0 6 year over year Consumer retail revenues were up 0 7 to 3 201 million Enterprise Solutions revenues contracted 1 4 to 2 466 million Partner Solutions revenues dropped 2 8 to 1 256 million Business Markets revenues grossed 890 million up 2 3 Other revenues decreased 21 3 to 63 million Operating expenses decreased 5 1 to 7 583 million Quarterly operating income was 293 million compared with an operating loss of 67 million in the year ago quarter Quarterly operating margin came in at 3 7 compared with an operating loss of 0 8 in the year ago quarter Segment EBITDA was up 18 3 to 1 785 million EBITDA margin was 22 7 compared with 19 0 in the year ago quarter At the end of first quarter 2017 FiOS video subscriber base was 4 681 million up 0 1 year over year FiOS Internet subscriber count was 5 688 million up 3 3 and FiOS digital voice residence connections totaled 3 887 million down 0 8 During the quarter Verizon lost 13 000 FiOS video subscribers and 8 000 FiOS digital voice residential connections while gaining 35 000 FiOS Internet subscribers High speed Internet connection tally dropped 16 7 year over year to 1 323 million while total broadband connection number was pegged at 7 011 million down 1 2 Primary residence switched access connections decreased 15 to 3 095 million and Primary residence connections fell 7 6 to 6 982 million Total retail residence voice connections declined 8 to 7 200 million and total voice connections contracted 7 8 to 13 634 million Outlook for 2017Management has estimated 2017 revenues and earnings per share to be mostly in line with 2016 Consolidated capital spending for 2017 will be in the range of 16 8 billion to 17 5 billion Verizon Communications Inc Price Consensus and EPS Surprise
Recent DevelopmentsVerizon 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 and Millennium Media In a bid to strengthen its presence in this space Verizon has entered into an agreement to acquire Yahoo Inc s NASDAQ YHOO core assets for 4 5 billion If the company can effectively assimilate the strategic assets with that of AOL and Millennium Media we believe it will gain an edge in the digital mobile content and advertising platform 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 Q2 EPS 0 94 vs estimate of 0 92 | Investing com Verizon NYSE VZ said Q2 adjusted EPS was 0 94 vs an estimate of 0 92Revenues were 30 5 bn against a forecast of 32 00 bn Verizon s Q2 2015 EPS was 0 91 on revenues of 32 2 bn Verizon Monday agreed to buy Yahoo s core internet business for 4 83 bn |
CSCO | Cisco Systems CSCO Stock Moves 0 3 What You Should Know | In the latest trading session Cisco Systems NASDAQ CSCO closed at 49 19 marking a 0 3 move from the previous day This change lagged the S P 500 s daily of 0 Elsewhere the Dow lost 0 19 while the tech heavy Nasdaq added 0 07
Coming into today shares of the seller of routers switches software and services had gained 1 17 in the past month In that same time the Computer and Technology sector gained 4 17 while the S P 500 gained 4 25
CSCO will be looking to display strength as it nears its next earnings release In that report analysts expect CSCO to post earnings of 0 81 per share This would mark year over year growth of 8 Meanwhile the Zacks Consensus Estimate for revenue is projecting net sales of 13 07 billion down 0 02 from the year ago period
For the full year our Zacks Consensus Estimates are projecting earnings of 3 37 per share and revenue of 52 90 billion which would represent changes of 8 71 and 1 92 respectively from the prior year
Investors should also note any recent changes to analyst estimates for CSCO Recent revisions tend to reflect the latest near term business trends As a result we can interpret positive estimate revisions as a good sign for the company s business outlook
Based on our research we believe these estimate revisions are directly related to near team stock moves Investors can capitalize on this by using the Zacks Rank This model considers these estimate changes and provides a simple actionable rating system
Ranging from 1 Strong Buy to 5 Strong Sell the Zacks Rank system has a proven outside audited track record of outperformance with 1 stocks returning an average of 25 annually since 1988 Over the past month the Zacks Consensus EPS estimate remained stagnant CSCO is currently a Zacks Rank 3 Hold
Looking at its valuation CSCO is holding a Forward P E ratio of 14 64 This valuation marks a discount compared to its industry s average Forward P E of 15 3
It is also worth noting that CSCO currently has a PEG ratio of 2 15 This popular metric is similar to the widely known P E ratio with the difference being that the PEG ratio also takes into account the company s expected earnings growth rate Computer Networking stocks are on average holding a PEG ratio of 2 15 based on yesterday s closing prices
The Computer Networking industry is part of the Computer and Technology sector This group has a Zacks Industry Rank of 77 putting it in the top 31 of all 250 industries
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups Our research shows that the top 50 rated industries outperform the bottom half by a factor of 2 to 1
To follow CSCO in the coming trading sessions be sure to utilize Zacks com |
CSCO | Splunk SPLK Up 2 9 Since Last Earnings Report Can It Continue | A month has gone by since the last earnings report for Splunk SPLK Shares have added about 2 9 in that time frame outperforming the S P 500
Will the recent positive trend continue leading up to its next earnings release or is Splunk 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 drivers Splunk s Q2 Results Aided By Strong Software Revenue GrowthSplunk reported second quarter fiscal 2020 non GAAP earnings of 30 cents per share which beat the Zacks Consensus Estimate by 18 cents and surged 275 year over year Revenues soared 33 year over year to 516 6 million and comfortably beat the Zacks Consensus Estimate of 487 million The year over year upside was driven by greater utilization of Splunk s products by existing customers and new customer wins License revenues 54 1 of revenues were 279 3 million up 39 2 year over year Maintenance service revenues 45 9 of revenues rose 26 5 to 237 3 million International operations accounted for 32 of total revenues Splunk also announced that it is set to acquire SignalFx a dominant SaaS provider in real time monitoring and metrics for cloud infrastructure microservices and applications Management believes that the acquisition will make the company a leader in cloud monitoring and application performance monitoring for organizations transitioning to cloud Quarter in DetailsSoftware revenues jumped 46 from the year ago quarter to 350 million Splunk stated that 95 of software bookings were either term or cloud Second quarter remaining performance obligation RPO was 1 24 billion up 47 year over year The company expects to recognize 751 million up 32 year over year of this RPO as revenues over the next 12 months RPO bookings grew 19 year over year to 554 million Cloud revenues soared 80 from the year ago quarter to 70 5 million on the back of increased utilization of cloud based services Notably cloud accounted for 25 of Splunk s business in the reported quarter Management expects cloud s contribution to grow 50 over the next few years In the reported quarter Cloud ARR jumped 81 to 300 6 million The company continues its successful transition to a subscription or renewable model which is evident from the fact that Splunk met its 75 transition rate for fiscal 2020 in fiscal 2019 itself However this transition is a headwind for the perpetual business which is declining rapidly Splunk added more than 500 new enterprise customers in the reported quarter The company had 93 orders worth more than 1 million The company also expanded its partnership with Cisco NASDAQ CSCO The collaboration resulted in Cisco endpoint security analytics built on Splunk solution which is now available to customers for ordering Splunk also expanded its relationship with Deloitte Risk and Financial Advisory according to which Deloitte s Fusion Managed Services Offerings now integrates Phantom Operating DetailsNon GAAP gross margin expanded 210 basis points bps from the year ago quarter to 84 2 driven by large scale efficiencies in Splunk s cloud business Cloud delivered a gross margin of more than 50 marking a milestone achievement per the company Splunk s long term cloud gross margin target is 70 or more Operating expenses as a percentage of revenues declined 400 bps on a year over year basis to 75 2 Research development R D and sales marketing S M expenses decreased 80 bps and 290 bps year over year respectively Non GAAP operating profit was 46 6 million up 310 from the year ago quarter Operating margin expanded 610 bps on a year over year basis to 9 Balance Sheet Cash FlowAs of Jul 31 2019 cash cash equivalents including investments were 1 67 billion Cash outflow from operations was 128 million due to rapid growth of the multi year term and cloud contracts GuidanceFor third quarter fiscal 2020 Splunk expects revenues of roughly 600 million Non GAAP operating margin is likely to be 16 Management expects that the elimination of perpetual licenses will increase renewable mix to 99 in the fourth quarter and high 90 for fiscal 2020 For fiscal 2020 Splunk anticipates revenues of almost 2 30 billion up from the previous guidance of 2 25 billion The company maintains its non GAAP operating margin target of 14 The company now expects operating cash outflow for the remainder of the fiscal Splunk projects operating cash outflow of 300 million for fiscal 2020 A higher mix of renewable term and cloud contracts and lower upfront cash invoicing an estimated 33 to be billed upfront in the second half of fiscal 2020 compared with 58 in the first half is expected to hurt cash flow Nevertheless Splunk expects long term after fiscal 2021 cash yield to return to the mid 20 levels
How Have Estimates Been Moving Since Then
In the past month investors have witnessed an upward trend in estimates review The consensus estimate has shifted 9 57 due to these changes
VGM Scores
At this time Splunk has a subpar Growth Score of D however its Momentum Score is doing a lot better with an A However the stock was allocated a grade of F on the value side putting it in the fifth quintile for this investment strategy
Overall the stock has an aggregate VGM Score of D If you aren t focused on one strategy this score is the one you should be interested in
Outlook
Estimates have been broadly trending upward for the stock and the magnitude of these revisions has been net zero Notably Splunk has a Zacks Rank 3 Hold We expect an in line return from the stock in the next few months |
CSCO | Cisco absorbs BroadSoft | Cisco NASDAQ CSCO announces the completion of the acquisition of BroadSoft NASDAQ BSFT for an aggregate purchase price of 1 9B The company says the addition of BroadSoft will accelerate its cloud strategy and collaboration portfolio Cisco expects that the delisting of BroadSoft s common stock from the NASDAQ stock market to become effective on February 12 CSCO 1 20 premarket to 41 20 Source Press ReleaseNow read |
VZ | Is Verizon Mulling To Bid For Straight Path Communications | As per a recent report by Reuters Verizon Communications Inc NYSE VZ is considering offering a counterbid to acquire Straight Path Communications Inc a leading provider of fixed wireless spectrum licenses Notably on Apr 10 2017 AT T Inc NYSE T announced its decision to purchase Straight Path Communications in an all stock merger deal
AT T has agreed to pay 95 63 per share a near 160 premium over Straight Path s closing price of 36 48 on Apr 7 Total value of the AT T deal was around 1 6 billion after considering the liabilities of Straight Path On Apr 13 after the market close Straight Path submitted a filing with SEC stating that the company is exploring a new offer from a third party that may top the AT T bid According to Reuters the new entrant is Verizon
Importantly Straight Path has a strong portfolio of 868 spectrum licenses in the high frequency 28 GHz and 39 GHz bands which are included in the Federal Communications Commission s FCC designation for the next generation of wireless broadband services Notably on Jul 2016 in a landmark voting the FCC unanimously decided to make high frequency radio spectrums above 24 GHz available for the use of the 5G wireless network
The regulatory body has voted to open up a total of nearly 11GHz of spectrum Of the total 3 85GHz will be licensed spectrum and the remaining 7GHz will be unlicensed bandwidth to be used for mobile and fixed wireless 5G network According to the research firm ABI Research 5G network deployment is expected to ramp up after 2020 and its market size may reach 247 billion worldwide by 2025
Verizon is conducting field trials for its upcoming 5G wireless network The company is preparing for initial deployment of the next generation 5G wireless networks in the U S in 2018 AT T is testing 5G technologies on 3 5GHz 4GHz 15GHz and 28GHz frequency bands Moreover T Mobile US Inc NYSE T is using the company s 28 GHz and 39 GHz frequency bands to test run 5G wireless standards
Importantly in Feb 2017 Verizon completed the acquisition of privately held XO Communications Inc s dark fiber optic network The deal valued at 1 8 billion was formulated in Feb 2016 The company will also lease XO s LMDS Local Multipoint Distribution Service wireless spectrum with an option to buy them by the end of 2018 XO has a portfolio of 102 LMDS licenses in 28 GHz and 39 GHz bands
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
Recently Comcast Corp NASDAQ CMCSA unveiled its wireless data plan going by its intentions to enter this market by mid 2017 The company has also acquired a series of licenses in the recently concluded 600 MHz low band wireless spectrum auction conducted by the FCC
At this juncture acquisition of more high frequency wireless spectrum will be immensely helpful for Verizon to make a strong foothold in the upcoming 5G wireless network race
Price Performance of Verizon
Year to date the stock price of Verizon has witnessed a loss of 8 58 underperforming the Zacks categorized industry s decline of 4 99 in the same time period
Nevertheless Verizon has a very powerful diversified business model In 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 fiber based footprint In the digital media front Verizon has become a major contender for the lucrative online advertisement business We believe these are primary reasons behind the stock currently carrying a Zacks Rank 3 Hold You can see
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VZ | Yahoo YHOO Posts Q1 Earnings Miss Focuses On Verizon Merger | Yahoo Inc NASDAQ YHOO just released its 2017 first quarter financial results posting earnings of 0 06 per share and revenues of 834 million Currently Yahoo is a Zacks Rank 3 Hold and is up 0 36 to 47 56 per share in trading shortly after its earnings report was released
Missed earnings estimates The company posted earnings of 0 06 per shares missing the Zacks Consensus Estimate of 0 08 This number excludes 4 cents from non recurring items
Beat revenue estimates The company saw revenue figures of 834 million beating our consensus estimate of 800 million
In Q1 Yahoo saw a 3 decline in revenue from 859 million year over year The company also cut back about 9 of its active employees Yahoo now has 8 600 active employees compared to 9 400 a year ago
For the rest of fiscal 2017 the search engine company looks to focus on its integration with Verizon NYSE VZ The deal is scheduled to close in June 2017
As we enter our final quarter as an independent company we are committed to finishing strong and planning for the best possible integration with Verizon With the transaction anticipated to complete in June said Marissa Mayer CEO of Yahoo
Here s a graph that looks at Yahoo Yahoo Inc Price and Consensus Yahoo Inc is a global Internet communications commerce and media company that offers a comprehensive branded network of services As one of the first online navigational guides to the World Wide Web Yahoo is one of the leading guides in terms of traffic advertising and household and business user reach The company also provides online business and enterprise services designed to enhance the productivity and Web presence of Yahoo s clients
Check back later for our full analysis on Yahoo s earnings report
Sell These Stocks Now Just released today s 220 Zacks Rank 5 Strong Sells demand urgent attention If any are lurking in your portfolio or Watch List they should be removed immediately These are sinister companies because many appear to be sound investments However from 1988 through 2016 stocks from our Strong Sell list have actually performed 6X worse than the S P 500 |
VZ | Top 5 things to watch today | Investing com Global stocks mostly higher ahead of central bank meetings Verizon Communications Inc NYSE VZ to buy Yahoo NASDAQ YHOO core internet business for 4 8 billionNintendo shares plunge on Pokemon profit warningGerman businesses brush off Brexit uncertaintyOil languishes near 3 month lows amid glut concerns |
VZ | U S stock index futures flat ahead of FOMC | Investing com U S stock index futures were flat Monday as eyes turn to FOMC starting Tuesday The Dow futures was up 0 04 at 07 30 ET while the S P 500 futures added 0 01 The tech heavy Nasdaq 100 futures shed 0 02 The yield on the U S 10 Year Treasury note was up two basis points at 1 590 Verizon Communications Inc NYSE VZ confirmed to buy Yahoo NASDAQ YHOO internet business for 4 83 bn in cash |
VZ | Wall St lower in early trade as FOMC looms | Investing com U S shares edged lower early Monday ahead of the FOMC decision on Wednesday The DJI was down 0 31 at 09 45 ET while the S P 500 lost 0 30 The tech heavy Nasdaq composite dropped 0 15 The Federal Reserve is expected to stand pat of rates Over two thirds of S P 500 companies reporting earnings have beaten estimates Verizon NYSE VZ was down 0 44 as investors gauged the impact of its Yahoo NASDAQ YHOO acquisition |
CSCO | Cisco CSCO Up 8 Since Last Earnings Report Can It Continue | A month has gone by since the last earnings report for Cisco Systems NASDAQ CSCO Shares have added about 8 in that time frame outperforming 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 its most recent earnings report in order to get a better handle on the important catalysts Cisco Systems Beats on Q4 Earnings RevenuesCisco Systems reported fourth quarter fiscal 2019 non GAAP earnings of 83 cents per share which beat the Zacks Consensus Estimate by a penny Further the figure rose 19 from the year ago quarter Revenues increased 6 year over year excluding Service Provider Video Software Solutions SPVSS to 13 428 billion and surpassed the consensus estimate of 13 376 billion Acquisitions contributed 60 basis points bps to the top line in the reported quarter Strength witnessed in the company s Security and Applications segments drove the year over year growth Order strength and improving traction of the subscription based model were other tailwinds Notably during the second quarter of fiscal 2019 the company completed the divestiture of its SPVSS business Top Line DetailsProducts 75 of total revenues jumped 7 to 10 12 billion Services 25 increased 4 to 3 31 billion driven by growth in software and solutions services Revenues from subscriptions represent 70 of the company s software revenues up 12 bps year over year Deferred product revenues were 6 6 billion down 18 from the year ago quarter Deferred service revenues were 11 7 billion up 2 Region wise Americas and EMEA revenues increased 9 and 7 year over year respectively However revenues from APJC decreased 4 Total emerging markets declined 8 and the BRICs plus Mexico fell 20 In terms of customer segments enterprise decreased 2 and service provider was down 21 However commercial and public sector rose 7 and 13 respectively Total product orders were flat on a year over year basis Cisco has realigned Product segments into four categories infrastructure platform applications security and other Wireless Switching Aid GrowthInfrastructure Platforms 58 6 of fiscal fourth quarter revenues comprise Switching NGN routing Wireless and Data Center solutions Revenues grew 6 from the year ago quarter to 7 876 billion The year over year increase can primarily be attributed to robust growth across switching wireless and data center business Switching revenues witnessed robust growth across campus and data center Adoption of new campus switch Cat9K and Nexus 9K was impressive Further wireless revenues improved on the back of company s Wave 2 offerings and Meraki solution Robust demand for the HyperFlex data center solution drove data center s double digit growth However routing declined mainly due to softness in service provider Management stated that the subscription based Catalyst 9000 switching platform has been adopted by several customers which aided them in becoming more flexible Moreover results benefited from persistent customer shift from 100G to 400G architectures Additionally rapid adoption of multi cloud infrastructures was a key catalyst AppDynamics Drives GrowthApplications 11 of fiscal fourth quarter revenues consist of Collaboration portfolio of Unified Communications UC Conferencing and TelePresence IoT and application software businesses such as AppDynamics and Jasper Revenues increased 11 from the year ago quarter to 1 487 billion The company had integrated its Cisco Spark with Webex Platform which enhanced Webex Meeting and enabled it to introduce Webex Teams fortifying the company s collaboration portfolio further Collaboration revenues rose primarily driven by growth across AppDynamics UC infrastructure and TelePresence endpoints Cisco recently unveiled AIOps leveraging AI ML and automation to offer enhanced customer experiences and higher business performance Security Remains StrongSecurity 5 of revenues climbed 14 to 714 million The growth can be attributed to solid demand witnessed by web security unified threat network security and advanced threat solutions The company is striving to leverage ML to deploy security platforms in order to mitigate online risks on a real time basis Other ProductsOther Products segment contains service provider video cloud and system management and various emerging technology offerings Revenues declined 4 to 42 million Acquisition A Key CatalystOn Jul 9 2019 Cisco expressed its intention to acquire Acacia Communications an optical networking technology company for 2 6 billion in cash and marketable securities Cisco anticipates the acquisition to close in the second half of next year subject to customary closing conditions Post the deal closure Acacia will join Cisco s Optical Systems and Optics group networking and security business Cisco also concluded the deal to buy Luxtera The company intends to deploy Luxtera s integrated optics technology capabilities across its robust network portfolio featuring capacities ranging from 100GbE Gigabit Ethernet to 400GbE This will enable Cisco to provide ultra high data heavy bandwidth services to CSPs and network service providers Further the deal will help Cisco to add more vital technology to its open source software in order to build networking machinery The company also announced that it has successfully closed the buyout of privately held Duo Security Further the integration of Duo s zero trust MFA technology with Cisco s network and cloud security platforms is likely to enhance security features and mitigate phishing incidents on devices This buyout will aid Cisco to deliver on its commitment of safeguarding customer data while focusing on people centric secure enterprise IT approach Operating DetailsNon GAAP gross margin expanded 230 bps from the year ago quarter to 65 5 On a non GAAP basis product gross margin and service gross margin came in at 64 7 and 67 9 compared with 61 9 and 67 2 reported a year ago respectively Non GAAP operating expenses were 4 4 billion up 11 year over year As a percentage of revenues operating expenses expanded 80 bps to 32 8 Non GAAP operating margin was up 140 bps year over year to 32 6 Balance Sheet and Cash FlowCisco exited the fiscal fourth quarter with cash cash equivalents and investments balance of almost 33 41 billion down from 34 64 billion in the prior year quarter Total debt short plus long was 24 67 billion compared with 23 69 billion in the previous quarter The company generated 3 9 billion cash flow from operations during the quarter under review In the fiscal fourth quarter Cisco returned 6 billion shares to shareholders in the form of share repurchase and dividend Furthermore the company declared a quarterly dividend of 35 cents per share GuidanceFor first quarter fiscal 2020 revenues are expected to grow 0 2 on a year over year basis Non GAAP earnings are anticipated between 80 cents and 82 cents per share Non GAAP gross margin is expected in the range of 64 65 while operating margin is anticipated between 32 and 33 for the quarter
How Have Estimates Been Moving Since Then
It turns out fresh estimates have trended downward during the past month
VGM Scores
Currently Cisco has a great Growth Score of A though it is lagging a lot on the Momentum Score front with a D Charting a somewhat similar path 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 B 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 | Cisco expands probe over exploits to nine more products | Cisco Systems CSCO 0 3 is including nine more of its products in an investigation over those that might be affected by the Spectre and Meltdown processor exploits CRN reports The list of products being examined now numbers in dozens of network application service and acceleration products the report says along with network management routing and server products not covered before Fixes are pending for three of its B Series servers and one C Series UCS server along with the C460 M4 rack server Most of its products aren t vulnerable to the exploits since they re proprietary closed systems the company says Now read |
VZ | Here s Why You Should Hold On Crown Castle CCI Amid Risks | On Apr 7 2017 we issued an updated research report on Crown Castle International Corp NYSE CCI a leading wireless communication tower operator in the U S The stock currently carries a Zacks Rank 3 Hold You can see The price performance of Crown Castle was impressive over the past three months The stock added 10 9 outshining the Zacks categorized industry s gain of 4 4 over the same time frame We are also impressed with Crown Castle s efforts to reward its shareholders with quarterly cash dividends On Feb 17 2017 the board of directors of Crown Castle declared a quarterly cash dividend of 95 cents per common share The quarterly dividend will be paid on Mar 31 2017 to stockholders of record at the closure of business on Mar 17 2017 Crown Castle s extensive tower portfolio increased demand for infrastructure strong business outlook healthy leasing activity continued acquisition of towers and growing demand for mobile broadband are major positives Wireless services are rapidly gaining ground courtesy of additional features and capabilities Much of the infrastructure and upgrades require effective site management of cell towers and equipment Crown Castle effectively addresses this opportunity as 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 Crown Castle had acquired 9 700 wireless towers from AT T and taken over 7 200 wireless towers of T Mobile US The deployment of the upcoming 5G network will drive growth on both the company s tower and small cell assets as the wireless carriers look to expand and enhance their networks to provide the coverage capacity and speed needed to support mobile video the Internet of Things IoT fixed wireless broadband However the company s operation in a consolidated wireless industry has reduced demand for cell tower deployment and is therefore expected to dent Crown Castle s top line considerably Further new technologies have reduced demand for site leases Also owing to its expansive international presence Crown Castle remains exposed to foreign currency exchange rate risks High customer concentration is also a concern for the company 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 | Straight Path Communications STRP Stock Skyrockets On AT T T Buyout | Shares of Straight Path Communications NYSE T opened more than 150 higher on Monday after wireless carrier AT T NYSE T announced that it would buy the holder of wireless spectrum licenses in a deal worth about 1 25 billion
AT T which is the second largest U S carrier will pay 95 63 per share for the company This price represents a premium of more than 160 from Straight Path s previous closing price The deal is an all stock merger and is intended to qualify as a tax free reorganization
The buyout comes just a few months after Straight Path announced that it was hiring Evercore Partners an investment bank intended to help the company explore its strategic options Evercore advised Straight Path on the sale and the merger was also supported by Straight Path s largest investor Howard Jonas the founder of IDT Corporation NYSE T and Genie Energy NYSE GNE
AT T s decision to pay nearly three times Straight Path s stock price underscores the carrier s desire to bolster its 5G portfolio Straight Path currently holds the rights to 868 spectrum licenses in the 28 GHz and 39 GHz bands which are both included in the FCC s for the next generation of wireless broadband services
By becoming the first nation to identify high band spectrum the United States is ushering in the 5G era of high capacity high speed low latency wireless networks said FCC Chairman Tom Wheeler
5th generation mobile networks are expected to be fully rolled out by 2020 and these new services could provide speeds of up to 100 times faster than today s 4G networks
AT T has already made significant progress in the 5G race and the carrier said it will launch its first 5G Evolution networks in the Austin and Indianapolis markets in the coming months
Our 5G Evolution plans will pave the way to the next generation of higher speeds for customers We re not waiting until the final standards are set to lay the foundation for our evolution to 5G We re executing now the company about its 5G plans
Today s news comes just days after another major headline in the telecom space Comcast s NASDAQ CMCSA announcement of Xfinity Mobile The cable giant which competes with AT T s U verse and DirecTV offerings signaled its intent to get into the wireless service sphere with a new 45 per month unlimited data plan that is supported by Verizon s NYSE VZ towers also read
These recent acquisitions are just two in what is becoming a busy M A space for the telecom business an industry that is in flux as companies attempt to prepare for the future and satisfy changing consumer needs For more on the trend check out the latest episode of the podcast
Zacks Hidden Trades
While 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 today and for the next month you can follow all Zacks private buys and sells in real time Our experts cover all kinds of trades value momentum ETFs stocks under 10 stocks that corporate insiders are buying up and companies that are about to report positive earnings surprises You can even look inside exclusive portfolios that are normally closed to new investors |
VZ | After AT T Buys Straight Path Globalstar Could Be The Next Telecom Takeover Target | Globalstar Inc s NYSE T stock skyrocketed 15 Monday morning on buyout speculation after AT T NYSE T purchased Straight Path Communications NYSE T for a 162 premium Globalstar s fun in the sun faded quickly after the initial wave of takeover speculation died down but a buyout could still be on the horizon
The struggling satellite phone maker looked poised for a massive Monday after fellow communications company Straight Path for 1 6 billion As is often the case investors began to buy Globalstar stock in the hopes that Verizon Communications Inc NYSE VZ T Mobile US Inc NYSE T or another cell phone giant might buy the company in order match AT T s new acquisition
Globalstar s stock was up 2 16 to 1 65 per share in Monday morning trading
Globalstar s major Monday push might have ended earlier than expected but its stock has the potential for future gains as a buyout is still very possible based on the company s relatively niche offerings
Niche Market
The company provides mobile voice and data communications services via satellite throughout the world Globalstar s clients include massively important industries such as oil and gas government military transportation and emergency preparedness The company does not face extreme competition as its bread and butter is out of reach of traditional wireless network clients
Still Globalstar saw its stock price fall drastically last June when news surfaced that the Federal Communications Commission wouldn t vote on its plan to pair licensed and unlicensed spectrum to create its new Terrestrial Low Power Service network Globalstar s stock then popped in December after the company addressed the
Globalstar all but abandoned its plans to try toease Wi Fi congestion in densely populated urban areas when it halted its efforts to pair licensed and unlicensed spectrum in January Instead the company pivoted to
Shares of the Covington Louisiana based company but the stock is up just 2 53 since the beginning of the year Before that Globalstar s stock price had dropped steadily over the last three years after trading at an all time high of 4 46 per share in June 2014 The sinking price meant investors were dying for Globalstar to bring something new to the table
Last Friday the company made a small but potentially significant play in order to do just that
Globalstar announced the launch of its new satellite industry compression service The company will offer its compression services which were developed by Yippy Inc OTC YIPI to its existing clients as well as other players in both the Mobile Satellite Services and Fixed Satellite Services industries The move will increase internet speeds for Globalstar customers and allow them to access and download important data and information much faster than before
Some Globalstar satellite clients can expect to see wait times to load online content decrease from minutes to seconds The compression industry is likely to grow as the amount of data stored on the web increases exponentially and Globalstar has positioned itself well by partnering with compression technology leader Yippy
The rollout of this effort has been a major initiative for our satellite operations teams and last year we provided the service on a trial basis Globalstar CEO Jay Monroe said in a After months of rigorous testing we have concluded that Yippy s platform provides subscribers with a greatly enhanced data service experience Additionally we believe that the technology can be used by operators throughout the satellite industry and we look forward to working with other providers to integrate this technology into their platforms
Globalstar s push into the compression market could prove to be viable as the compression industry grows The move could also help increase the company s buyout chances
Furthermore the company s satellite phones and remote internet connection services are still in high demand from the U S military as well as others such as major shipping companies oil giants and disaster relief organizations
AT T paid a premium for Straight Path in order to bolster its 5G capabilities But with a 248 billion market cap AT T could be looking for additional small acquisitions in the near future
A buyout is still very possible for Globalstar as any deal would be relatively affordable for Verizon AT T or another player especially when considering it would uniquely expand the business offerings of any of the industry giants
Zacks Hidden Trades
While we share many recommendations and ideas with the public certain moves are hidden from everyone but chosen members of our portfolio services Would you like to peek behind the curtain today and view them
Starting today and for the next month you can follow all Zacks private buys and sells in real time Our experts cover all kinds of trades value momentum ETFs stocks under 10 stocks that corporate insiders are buying up and companies that are about to report positive earnings surprises You can even look inside portfolios so exclusive that they are normally closed to new investors |
VZ | AT T To Buy Straight Path Communications ETFs In Focus | AT T NYSE T will acquire Straight Path Communications NYSE T for 1 25 billion in an all stock deal to accumulate the airwaves it needs for a next generation network
This is the second acquisition by AT T this year as it competes with other telecom giants to create a stronghold in the 5G space In February this year AT T said it was acquiring privately held FiberTower and its millimeter wave spectrum rights read
Straight Path Communications is one of the largest holders of 28 and 39 GHz millimeter wave spectrum which has already been approved for use in 5G services by the U S Federal Communications Commission Wireless carriers are willing to pay a premium to get into this space by acquiring companies that have the required licenses and expertise to help them get the right spectrum for the next generation network The network is expected to boost Internet speeds significantly
We note that earlier this year Straight Path Communications was involved in a legal scuffle It was asked to pay the FCC 15 million to settle a probe The company was accused of submitting false progress data to renew airwave licenses It was asked to transfer its 28 and 39 GHz licenses by January 2018 and pay 20 of sales proceeds
Coming back to the deal AT T has agreed to acquire Straight Path for 95 63 a share in an all stock deal designed to be a tax free reorganization This marks a 162 premium to its closing price of 36 48 on Friday April 7 2017 After the deal was announced shares of Straight Path took a giant leap and closed at 91 64 on Tuesday April 10 2017 However there was no noticeable impact of the announcement on AT T shares
The total value of the deal includes liabilities and the amount owed to the FCC This deal can be a game changer for AT T in the 5G space Let s discuss some ETFs which have a high exposure to AT T see all
Fidelity MSCI Telecommunication Services ETF
This ETF is one of the cheapest funds in the telecom space It is appropriate for investors who are bullish on the U S telecom sector
It has AUM of 130 1 million and charges 8 basis points as fees per year Verizon Communications Inc NYSE VZ AT T and Level 3 Communications Inc NYSE T are the top three holdings of this fund with 22 31 22 22 and 4 60 allocation respectively The fund returned 8 in the last one year and lost 0 31 in the year to date time frame as of April 10 2017 FCOM currently has a Zacks ETF Rank 3 Hold with a Medium risk outlook
Vanguard Telecommunication Services ETF MU VOX
This ETF is one of the most popular funds in the telecom space read
It has AUM of 1 50 billion and charges 12 basis points as fees per year AT T Verizon and T Mobile US Inc NYSE T are the top three holdings of this fund with 22 80 22 60 and 4 50 allocation respectively The fund returned 5 19 in the last one year and lost 3 49 in the year to date time frame as of April 10 2017 VOX currently has a Zacks ETF Rank 3 with a Medium risk outlook
iShares Global Telecom ETF
This ETF provides exposure to the global telecom space
It has AUM of 301 8 million and charges 47 basis points as fees per year Considering the top three holdings from a geographical perspective the fund has 38 65 exposure to the U S 16 51 to Japan and 8 13 to United Kingdom From an individual holding perspective Verizon AT T and Vodafone Group PLC LON VOD are the top three holdings with 20 15 16 03 and 5 39 allocation respectively The fund lost 4 65 in the last one year and gained 0 89 in the year to date time frame as of April 10 2017 IXP currently has a Zacks ETF Rank 3 with a Medium risk outlook
To Conclude
The 5G spectrum has become a lucrative avenue for all telecom giants This new network as and when available will significantly impact revenues of telecom companies Meanwhile we believe it is best to remain on the sidelines
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VZ | The Telecom Retreat Trade Levels To Know | Verizon NYSE VZ and AT T NYSE T are two of the leading telecom stocks in the U S and both have recently been on the prowl for acquisitions Verizon bought AOL and Yahoo NASDAQ YHOO over the past year trying to boost its online presence AT T meanwhile acquired Direct TV and Straight Path Communications NYSE STRP Many analysts are expecting the two telecom giants to try and make other acquisitions in the near term which should continue to keep the pressure on both telecom stocks
Traders and investors should take note that Verizon s stock will have very good chart support around the 46 25 level an area that was defended by institutional money in January and November of 2016 This area seems to be the line in the sand for Verizon and should be the next major level to buy the stock again
AT T s next major support will be around 38 40 which is an area where the stock broke out in November 2016 and should serve as an important trade level when tested again |
VZ | Is Verizon A Great Stock For Value Investors | Value investing is easily one of the most popular ways to find great stocks in any market environment After all who wouldn t want to find stocks that are either flying under the radar and are compelling buys or offer up tantalizing discounts when compared to fair value One way to find these companies is by looking at several key metrics and financial ratios many of which are crucial in the value stock selection process Let s put Verizon Communications Inc NYSE VZ stock into this equation and find out if it is a good choice for value oriented investors right now or if investors subscribing to this methodology should look elsewhere for top picks PE RatioA key metric that value investors always look at is the Price to Earnings Ratio or PE for short This shows us how much investors are willing to pay for each dollar of earnings in a given stock and is easily one of the most popular financial ratios in the world The best use of the PE ratio is to compare the stock s current PE ratio with a where this ratio has been in the past b how it compares to the average for the industry sector and c how it compares to the market as a whole On this front Verizon has a trailing twelve months PE ratio of 12 64 as you can see in the chart below This level actually compares pretty favorably with the market at large as the PE for the S P 500 compares in at about 20 27 If we focus on the stock s long term PE trend the current level puts Verizon s current PE ratio above its midpoint over the past five years with the number having traded roughly downwards over the past few months Further the stock s PE also compares favorably with the Zacks classified Wireless National Market sub industry s trailing twelve months PE ratio which stands at 16 24 At the very least this indicates that the stock is relatively undervalued right now compared to its peers We should also point out that Verizon has a forward PE ratio price relative to this year s earnings of just 12 69 which is tad higher than the current level Hence the forward earnings estimates are already incorporated in the company s current share price P S RatioAnother key metric to note is the Price Sales ratio This approach compares a given stock s price to its total sales where a lower reading is generally considered better Some people like this metric more than other value focused ones because it looks at sales something that is far harder to manipulate with accounting tricks than earnings Right now Verizon has a P S ratio of about 2 57 This is a bit lower than the S P 500 average which comes in at 3 08 right now Also as we can see in the chart below this is well below the highs for this stock in particular over the past few years suggesting some level of undervalued trading at least compared to historical norms Broad Value OutlookIn aggregate Verizon currently has a Zacks Value Style Score of B putting it into the top 40 of all stocks we cover from this look This makes Verizon a solid choice for value investors and some of its other key metrics make this pretty clear too What About the Stock Overall Though Verizon might be a good choice for value investors there are plenty of other factors to consider before investing in this name In particular it is worth noting that the company has a Growth grade of D and a Momentum score of F This gives VZ a Zacks VGM score or its overarching fundamental grade of C You can read more about the Zacks Style Scores Meanwhile the company s recent earnings estimates have been bearish The current quarter has seen eight estimates go lower in the past sixty days compared to no upper while the full year estimate has seen one up and seven down in the same time period This has had a substantial impact on the consensus estimate though as the current quarter consensus estimate inched lower by 2 in the past two months while the full year estimate decreased 1 3 You can see the consensus estimate trend and recent price action for the stock in the chart below Verizon Communications Inc Price and Consensus
Despite the bearish analyst sentiments the stock has a Zacks Rank 3 Hold and we are looking for in line performance from the company in the near term Bottom LineVerizon is an inspired choice for value investors as it is hard to beat its incredible lineup of statistics on this front However with a sluggish industry rank among Bottom 27 of more than 250 industries and a Zacks Rank 3 it is hard to get too excited about this company overall In fact over the past two years the Zacks Wireless National Market has clearly underperformed the broader market as you can see below So value investors might want to wait for estimates and analyst sentiment to turn around in this name first but once that happens this stock could be a compelling pick The Best Worst of ZacksToday you are invited to download the full up to the minute list of 220 Zacks Rank 1 Strong Buys free of charge From 1988 through 2015 this list has averaged a stellar gain of 25 per year Plus you may download 220 Zacks Rank 5 Strong Sells Even though this list holds many stocks that seem to be solid it has historically performed 6X worse than the market |
VZ | U S FCC says 62 bidders make down payments in spectrum auction | By David Shepardson WASHINGTON Reuters The U S Federal Communications Commission said on Friday that 62 bidders have made upfront payments in a forthcoming wireless spectrum auction including AT T Inc NYSE T Verizon Communications Inc NYSE VZ Dish Network T Mobile US and Comcast Corp NASDAQ CMCSA The auction is set to begin on Aug 16 Last month the FCC said the price of 126 MHz of television airwaves taken from broadcasters to be sold for wireless use is 86 4 billion Analysts said wireless providers may not be willing to pay the staggering amount for the airwaves to expand their networks which could prompt the FCC to hold additional auction rounds The so called broadcast incentive spectrum auction is one of the commission s most complex and ambitious to date In the first round called a reverse auction broadcasters competed to give up spectrum to the FCC for the lowest price In the next stage that will start next month the forward auction wireless and other companies will bid to buy the airwaves for the highest price If wireless companies and other investors are unwilling to pay 86 4 billion the FCC may have to hold another round of bidding by broadcasters and sell less spectrum than had been expected analysts said Wireless firms and other bidders had to put up 50 percent of the opening bid price to participate Initially about 100 firms and individuals were qualified to take part but the others declined to put up funds to take part Recon Analytics analyst Roger Entner said in June the results confirm that broadcasters have significantly inflated expectations In an election year with a lot of uncertainty with Brexit making the debt markets jittery it is unlikely that wireless operators with deep pockets would raise more debt to bid in the auction Entner said referring to the U S presidential election and the British vote to leave the European Union A second round of the reverse auction later this year is likely Dan Hays principal at audit firm PwC s consulting arm Strategy and could drag on until early next year
S P Global Market Intelligence estimated in April that a dozen broadcasters such as Univision Communications Inc CBS Corp NYSE CBS Sinclair Broadcast Group Inc and Media General Inc could generate up to 13 billion in the spectrum auction at the high end of participation |
VZ | Yahoo reports lackluster results as sale looms | By Deborah M Todd Reuters Yahoo Inc s NASDAQ YHOO O quarterly earnings fell short of Wall Street expectations on Monday in what may be the company s last financial report before it sells its core business Yahoo reported adjusted earnings of 9 cents per share short of the 10 cents that analysts expected It also announced a 482 million write down on the value of Tumblr the social media service that it acquired in 2013 for 1 1 billion Yahoo is in the process of auctioning off its search and advertising business and is expected to choose a winner this week The company said its board has made great progress on strategic alternatives but did not comment further on the auction process Verizon Communications Inc NYSE VZ and AT T Inc NYSE T are said to be in the running to acquire the core business along with private equity firm TPG Capital and a consortium led by Quicken Loans founder Dan Gilbert and backed by billionaire Warren Buffett Yahoo also owns large stakes in Chinese ecommerce giant Alibaba NYSE BABA and Yahoo Japan which are worth far more than the company s internet business Monday s earnings report showed the continued slide in Yahoo s business during the protracted sale process After the Tumblr write down the company posted a net loss of 439 9 million or 46 cents per share compared with a loss of 21 6 million or 2 cents per share a year earlier Although total revenue rose to 1 31 billion from 1 24 billion a year earlier the seeming improvement was the result of a change in the way the cost of acquiring traffic is counted After deducting fees paid to partner websites for traffic revenue fell to 841 2 million from 1 04 billion Estimating that Tumblr is worth nothing at this point Ross Gerber cofounder and CEO of Gerber Kawasaki Wealth and Investment Management said potential buyers were likely bidding lower than Yahoo believes it is worth I can t imagine why the sale process is taking so long the only thing I can think of is it s being overpriced This report doesn t further create an impression that paying up for these assets has any value Gerber said Revenue in the company s emerging businesses which Chief Executive Officer Marissa Mayer calls Mavens mobile video native and social advertising showed some life rising 25 7 percent to 504 million in the second quarter ended June 30 But the improvement in Mavens was offset by decreases in gross search revenue that is only expected to get worse said B Riley Co analyst Sameet Sinha Gross search revenue for the quarter was 765 million down 17 percent from the same period last year This is supposed to be the growth engine of the company and at best it was up slightly year over year That shows that even in high growth categories like mobile and native they re losing their search impact he said JMP Securities analyst Ronald Josey said search revenues are a significant portion of Yahoo s overall revenues and their continued decline could definitely be a factor in the sale negotiations If search continues to decline as much as it has that s something that s going to be called into question he said In a conference call Yahoo Chief Financial Officer Ken Goldman touted the company s cost cutting efforts Through excellent expenditure management of cost and capital we achieved above the high end of our guidance on adjusted EBITDA and significantly increased cash flow he said referring to earnings before interest taxes depreciation and amortization
Yahoo s shares were little changed at 37 92 in trading after the bell |
VZ | Verizon among leading bidders for Yahoo s core business Bloomberg | Reuters Yahoo NASDAQ YHOO Inc s core business secured five bidders in the final round including Verizon Communications Inc NYSE VZ Quicken Loans Inc founder Dan Gilbert and Vector Capital Management Bloomberg reported on Tuesday citing people familiar with the matter The other bidders are AT T Inc NYSE T and private equity suitor TPG Bloomberg reported citing a source Yahoo which is in the process of auctioning off its search and advertising business said on Monday its board had made great progress on strategic alternatives but did not comment further on the auction process The company is expected to choose a winner this week The company also reported quarterly earnings that fell short of Wall Street expectations in what may be its last financial report before it sells its core business
Yahoo declined to comment on the article |
VZ | U S asks phone companies to provide robocall blocking technology | By David Shepardson WASHINGTON Reuters The chairman of the Federal Communications Commission on Friday pressed major U S phone companies to take immediate steps to make technology that blocks unwanted automated calls available to consumers at no charge FCC Chairman Tom Wheeler in letters to CEOs of major phone companies said so called robocalls automated pre recorded telephone calls often from telemarketers or scam artists continue due in large part to industry inaction Wheeler s letters went to chief executives of companies including Verizon Communications Inc NYSE VZ AT T Inc NYSE T Sprint Corp US Cellular Corp Level 3 Communications Inc Frontier Communications Corp NASDAQ FTR Bandwidth com Inc and T Mobile US Wheeler said in a blog post on Friday that he wants answers from the companies within 30 days with their concrete actionable solutions to address these issues The letters reviewed by Reuters noted that the FCC does not require phone providers to offer robocall blocking and filtering but the FCC has strongly encouraged providers to offer these services at no charge to consumers Tom Power general counsel at CTIA the wireless trade association said on Friday that unwanted calls and texts are a consumer issue the wireless industry works hard to address and we look forward to working with the FCC to help address this challenge together The FCC gets hundreds of thousands of complaints annually about robocalls and unwanted text messages Wheeler s letters also said providers can do more to ensure that incoming calls are not spoofed when callers falsify the information transmitted to caller ID displays to disguise their identity Scam artists often try to appear to call from a bank or a government phone to trick consumers into disclosing confidential financial or account information Other scams pitch phony vacation or mortgage offers In the letters the FCC said the phone industry should create a Do Not Originate list that would allow government agencies banks and healthcare providers among others to register their phone numbers and would allow providers to block calls from outside the United States Many phone scams based overseas target Americans The FCC said last year it agreed that phone companies should not block calls without customers permission Wheeler noted that providers have suggested that blocking should wait until new Caller ID authentication standards are in place but that is not a valid excuse for delay
The FCC has brought 13 enforcement actions to combat robocalls since 2013 In 2015 the FCC fined a Florida company nearly 3 million for illegal calls promoting travel deals |
VZ | Top 5 Things to Know in the Market on Monday | Investing com Here are the top five things you need to know in financial markets on Monday July 25
1 Global stocks gain ahead of central bank meetings
Global stock markets traded mostly higher on Monday as investors looked ahead to key central bank meetings later this week The Federal Reserve will meet on July 26 to 27 followed by the Bank of Japan s policy meeting on July 28 to 29
The Fed is not expected to take action on interest rates at the conclusion of its two day policy meeting on Wednesday but market players will scrutinize its policy statement for fresh hints on the timing of interest rate hikes over the next several months
The BOJ on the other hand is widely expected to ease policy further at a policy review ending on Friday which could include a rate cut deeper into negative territory and additional asset purchases
U S stock index futures pointed to a modestly higher open as investors eyed a fresh batch of corporate earnings reports as well as the Federal Reserve and Bank of Japan s policy meetings scheduled later in the week
Meanwhile European stock markets were slightly higher in morning trade on Monday as investors digested corporate earnings and prepared for central bank meetings in the U S and Japan later this week
Earlier Asian stocks held near nine month highs on Monday as investors are hoping for a big stimulus announcement from the Bank of Japan later this week
2 Verizon to buy Yahoo for 4 8 billion
Verizon Communications Inc NYSE VZ has agreed to pay 4 8 billion to acquire Yahoo Inc NASDAQ YHOO according to a person familiar with the matter The announcement will come before the start of New York trading hours the source added
The deal will end months of uncertainty about Yahoo s future after the company announced plans to review strategic alternatives in February
The transaction would boost Verizon s AOL internet business which the company acquired last year for 4 4 billion by giving it access to Yahoo s advertising technology tools as well as other assets such as search mail messenger and real estate
3 Nintendo shares plunge on Pokemon profit warning
Shares in Nintendo Ltd T 7974 took a steep dive Monday after the company warned investors that the wildly popular Pokemon GO mobile app would have only a limited impact on its earnings The stock sank nearly 18 in Tokyo wiping out about 6 4 billion in market value
The Kyoto based gaming company which is due to report first quarter results on Wednesday surprised markets with a statement on Friday that income garnered through its 32 stake in affiliate Pokemon Company which owns the licensing rights would be limited and that it did not plan to revise its earnings outlook for now
4 German businesses brush off Brexit uncertainty
German business sentiment fell less than forecast in July in a sign that Europe s largest economy proved resilient to the immediate aftermath of the U K Brexit vote
The German Ifo economic institute said its business climate index dropped to 108 3 this month from a reading of 108 7 in June Economists forecast a decline to 107 5
5 Oil languishes near 3 month lows amid glut concerns
Oil prices struggled near the lowest level in almost three months on Monday as concerns over a global supply glut intensified after data showed that the U S oil rig count rose for the fourth week in a row last week
U S crude was down 27 cents or 0 61 to 43 92 a barrel while Brent shed 26 cents or 0 56 to 45 83 a barrel |
CSCO | Splunk s SPLK Q2 Earnings Revenues Surpass Estimates | Splunk NASDAQ SPLK reported second quarter fiscal 2020 non GAAP earnings of 30 cents per share which beat the Zacks Consensus Estimate by 18 cents and surged 275 year over year Revenues soared 33 year over year to 516 6 million and comfortably beat the Zacks Consensus Estimate of 487 million The year over year upside was driven by greater utilization of Splunk s products by existing customers and new customer wins License revenues 54 1 of revenues were 279 3 million up 39 2 year over year Maintenance service revenues 45 9 of revenues rose 26 5 to 237 3 million International operations accounted for 32 of total revenues Splunk also announced that it is set to acquire SignalFx a dominant SaaS provider in real time monitoring and metrics for cloud infrastructure microservices and applications Management believes that the acquisition will make the company a leader in cloud monitoring and application performance monitoring for organizations transitioning to cloud Splunk Inc Price Consensus and EPS Surprise Quarter in DetailSoftware revenues jumped 46 from the year ago quarter to 350 million Splunk stated that 95 of software bookings were either term or cloud Second quarter remaining performance obligation RPO was 1 24 billion up 47 year over year The company expects to recognize 751 million up 32 year over year of this RPO as revenues over the next 12 months RPO bookings grew 19 year over year to 554 million Cloud revenues soared 80 from the year ago quarter to 70 5 million on the back of increased utilization of cloud based services Notably cloud accounted for 25 of Splunk s business in the reported quarter Management expects cloud s contribution to grow 50 over the next few years In the reported quarter Cloud ARR jumped 81 to 300 6 million The company continues its successful transition to a subscription or renewable model which is evident from the fact that Splunk met its 75 transition rate for fiscal 2020 in fiscal 2019 itself However this transition is a headwind for the perpetual business which is declining rapidly Splunk added more than 500 new enterprise customers in the reported quarter The company had 93 orders worth more than 1 million The company also expanded its partnership with Cisco Systems NASDAQ CSCO The collaboration resulted in Cisco endpoint security analytics built on Splunk solution which is now available to customers for ordering Splunk also expanded its relationship with Deloitte Risk and Financial Advisory according to which Deloitte s Fusion Managed Services Offerings now integrates Phantom Operating DetailsNon GAAP gross margin expanded 210 basis points bps from the year ago quarter to 84 2 driven by large scale efficiencies in Splunk s cloud business Cloud delivered a gross margin of more than 50 marking a milestone achievement per the company Splunk s long term cloud gross margin target is 70 or more Operating expenses as a percentage of revenues declined 400 bps on a year over year basis to 75 2 Research development R D and sales marketing S M expenses decreased 80 bps and 290 bps year over year respectively Non GAAP operating profit was 46 6 million up 310 from the year ago quarter Operating margin expanded 610 bps on a year over year basis to 9 Balance Sheet Cash FlowAs of Jul 31 2019 cash cash equivalents including investments were 1 67 billion Cash outflow from operations was 128 million due to rapid growth of the multi year term and cloud contracts GuidanceFor third quarter fiscal 2020 Splunk expects revenues of roughly 600 million Non GAAP operating margin is likely to be 16 Management expects that the elimination of perpetual licenses will increase renewable mix to 99 in the fourth quarter and high 90 for fiscal 2020 For fiscal 2020 Splunk anticipates revenues of almost 2 30 billion up from the previous guidance of 2 25 billion The company maintains its non GAAP operating margin target of 14 The company now expects operating cash outflow for the remainder of the fiscal Splunk projects operating cash outflow of 300 million for fiscal 2020 A higher mix of renewable term and cloud contracts and lower upfront cash invoicing an estimated 33 to be billed upfront in the second half of fiscal 2020 compared with 58 in the first half is expected to hurt cash flow Nevertheless Splunk expects long term after fiscal 2021 cash yield to return to the mid 20 levels Zacks Rank Stocks to ConsiderCurrently Splunk carries a Zacks Rank 3 Hold Some better ranked stocks in the broader Computer Technology sector are HubSpot NYSE HUBS Chegg NYSE CHGG and Paylocity Holding NASDAQ PCTY While Chegg and Paylocity sport a Zacks Rank 1 Strong Buy HubSpot has a Zacks Rank 2 Buy You can see Long term earnings growth rate for HubSpot Chegg and Paylocity is 49 4 30 and 20 respectively It s Illegal in 42 States But Investors Will Make Billions LegallyIn addition to the companies you read about above today you get details on the newly legalized industry that s tapping into a habit that Americans spend an estimated 150 billion on every year That s twice as much as they spend on marijuana legally or otherwise Zacks special report revealing how investors can profit from this new opportunity As more stateslegalize this activity the industry could expand by as much as 15X Zacks has just released a Special Report revealing 5 top stocks to watch in this space |
CSCO | Factors Likely To Influence Workday s WDAY Q2 Earnings | Workday Inc NASDAQ WDAY is scheduled to report second quarter fiscal 2020 results on Aug 29 Notably the company has surpassed the Zacks Consensus Estimate in the trailing four quarters with an average positive surprise of 39 7 Past Quarter PerformanceIn the last reported quarter Workday non GAAP earnings of 43 cents per share which beat the Zacks Consensus Estimate by a couple of cents The figure also improved from 33 cents reported in the year ago quarter Strong growth can primarily be attributed to a rise of 33 4 in revenues which totaled 825 1 million The figure outpaced the Zacks Consensus Estimate for revenues of 814 million The upside was driven by solid growth in subscription and professional services revenues What to Expect in Q2 For second quarter fiscal 2020 Workday expects subscription revenues in the range of 746 748 million up approximately 32 sequentially Professional services revenues are projected at 124 million The Zacks Consensus Estimate for revenues is pegged at 872 2 million indicating an improvement of approximately 29 9 from the year ago quarter We note that the Zacks Consensus Estimate for earnings has remained unchanged in the past week The Zacks Consensus Estimate for the quarter under review is pegged at 35 cents per share suggesting growth of around 12 9 from the year ago quarter s reported figure Notably Workday stock has returned 26 7 in a year s time substantially outperforming the s rally of 3 3 Let s see how things are shaping up prior to this announcement Factors at PlayWorkday is leaving no stone unturned to enhance customer experience by adding extended capabilities and tools in Workday HCM and Workday Financial Management in order to bolster adoption The incremental adoption of the offerings is expected to favor the top line in the to be reported quarter We believe improving customer satisfaction rate is another positive In the quarter under review market research firm Gartner s May 2019 Magic Quadrant for Cloud Core Financial Management Suites for Midsize Large and Global Enterprises report put Workday in the Leaders quadrant which reflects the company s growing clout in the cloud market Notably Workday was recognized as a Leader for the third year in a row The company was ranked 1 on San Francisco Business Times list of the best place to work in Bay Area Additionally the company was ranked 1 on the list of the Best Large Workplaces in the U K by Great Place to Work Institute In the to be reported quarter the company unveiled Workday 32 with more than 500 latest features to aid resource managers support skills resources to projects and provide deeper integration between Workday and Adaptive Insights Further the company witnessed rapid deployment of HCM solution It was chosen by the likes of Carl Zeiss AG Cisco Systems NASDAQ CSCO Daimler Trucks North America Old Mutual Limited and Procter Gamble This is likely aid the upcoming quarterly results Additionally the growing influence of Workday Cloud Platform Workday Prism Analytics and Workday Marketplace bode well Partnerships with Duo Security and SkipFlag are also anticipated to aid Workday in expanding business in the to be reported quarter Further the acquisitions are likely to enhance and expand machine learning ML AI and data analytics capabilities to drive customer satisfaction which in turn will positively impact the upcoming quarterly results Moreover strong focus on product innovation and higher investments in introducing products is expected to provide the company a competitive edge against its peers which in turn is likely to impact the top line in the to be reported quarter However intensifying competition from peers and higher marketing expenditure are major headwinds at least in the near term What Our Model SaysAccording to the Zacks model a company with a Zacks Rank 1 Strong Buy 2 Buy or 3 Hold has a good chance of beating estimates if it also has a positive Sell rated stocks Zacks Rank 4 or 5 are best avoided Workday has a Zacks Rank 3 and an Earnings ESP of 0 00 This combination makes surprise prediction difficult You can uncover the best stocks to buy or sell before they re reported with our Stocks to ConsiderHere are some better ranked stocks which you may consider as our model shows that these have the right combination of elements to post an earnings beat in its upcoming release The Cooper Companies Inc NYSE COO has an Earnings ESP of 1 50 and a Zacks Rank 2 You can see Coupa Software Inc NASDAQ COUP has an Earnings ESP of 6 6 and a Zacks Rank 2 Dollar General Corporation NYSE DG has an Earnings ESP of 2 64 and a Zacks Rank 3 Today s Best Stocks from ZacksWould you like to see the updated picks from our best market beating strategies From 2017 through 2018 while the S P 500 gained 15 8 five of our screens returned 38 0 61 3 61 6 68 1 and 98 3 This outperformance has not just been a recent phenomenon From 2000 2018 while the S P averaged 4 8 per year our top strategies averaged up to 56 2 per year |
CSCO | Cisco execs in operations sales departing | Cisco Systems CSCO 0 7 is shuffling a pair of executive leadership positions After 22 years with the company Rebecca Jacoby is exiting her post as senior VP of Operations She ll be succeeded by Irving Tan currently senior VP of Asia Pacific and Japan who will become senior VP of Operations and Digital a new role Jacoby will continue on as an adviser until the end of May Executive VP of Worldwide Sales and Field Operations Chris Dedicoat is also leaving at the end of Cisco s fiscal year next July and moving to a senior advisory role Now read |
VZ | Frontier Communications Here s How To Play The Dividend Cut Fears | Fear is high that a Frontier NASDAQ FTR dividend cut is coming Its price is down its yield 12 4 seems unsustainably high and short interest is among the highest in the S P 500
However to a large extent Frontier does have the ability to control its cash flows and sustain its dividend in the near and mid term The real challenge is that Frontier s business exists in an anemically eroding marketplace And if you are attracted to Frontier because of its big dividend yield then you may want to consider the bonds instead Many of Frontier s high yield bonds offer big interest payments and they re far safer than the stock plus the bonds might get a nice price bump if Frontier s dividend actually does get cut
Frontier faces challenges
Frontier faces big challenges For starters the company provides voice video and data services to customers dispersed across the US often in smaller rural markets where the big boys Verizon NYSE VZ and AT T NYSE T are generally not interested
The company s financial wherewithal is being stretched increasingly thin considering the high costs of maintaining its dispersed and neglected networks its balance sheet debt obligations and its equity investor s demands for dividends
Also potential increased competition from wireless service providers is threatening And as further evidence of the challenges facing Frontier short interest has recently exceeded 19 making it one of the most bet against stocks in the S P 500
Further still the following chart shows the company s free cash flows the money from operations left over after capital expenditures has recently been negative
And considering all of these challenges many investors are left wondering if the big dividend is safe or if it is heading for a big dividend cut
Frontier s dividend is sustainable for now
Frontier s dividend is sustainable in the short and mid term if the company wants to sustain it For example Frontier can skimp on network capital expenditures in the short and mid term at the expense of disgruntled customers remember Frontier is the only provider in many of the areas it serves However Frontier may likely be able to sustain the dividend without further sacrificing services and capital expenditures As the following graphic shows the company has plans to strengthen itself in the coming years via cost synergies
Additionally Frontier s cash flows may not be as dire as a basic free cash flow calculation see earlier FCF chart suggests In particular adjusted free cash flow and the dividend as shown in the following chart is much less stressed
For reference Adjusted Free Cash Flow is defined as free cash flow as described above and adding back interest expense on incremental debt and dividends paid prior to the company s ownership of the CTF operations on debt incurred and preferred stock issued to finance the Verizon Acquisition
Also worth noting the government has a vested interest in supporting Frontier In particular the government wants Frontier to keep providing phone and data services in certain dispersed and underserved areas and that s why Frontier receives multiple government subsidies For example in 2015 500 million or 9 of Frontier s total revenues were derived from federal and state subsidies for rural and high cost support commonly referred to as USF 2015 10 K p 22
Frontier s bonds better than its stock
As the following table shows Frontier currently has a variety of high yield bonds outstanding
Specifically many of these bonds offer big coupons and very attractive yields to maturity And what makes them even more attractive to us is that many of them are far safer than the stock For example Frontier has some 2025 bonds that offer 11 interest payments 10 496 YTM And not only does Frontier have the cash flow to keep paying these bonds now they have the ability to cut the stock dividend in the future which will free up even more cash flow to pay the bonds if needed And if Frontier does cut the dividend the bonds will likely experience an immediate jump in price because the market will perceive the bonds as even safer i e cutting the dividend frees up more cash flow thereby making the bonds safer
Generally speaking companies don t stop paying interest on their debt unless they re going into bankruptcy and that s not the case for Frontier i e Frontier has plenty of business and cash flow to remain a going concern And as we mentioned earlier the government has a vested interest in NOT letting Frontier go into bankruptcy i e the government wants Frontier to keep serving the areas that it does and that s exactly why Frontier receives all those government subsidies Unless some hostile takeover occurs whereby the barbarians intentionally take Frontier into bankruptcy the bonds are money good especially considering the government regulators want Frontier to stay in business
Risks
As we mentioned earlier Frontier s business faces a variety of risks that are worth considering For example Frontier serves customers in dispersed regions across the US which makes supporting the network expensive And in many areas the network has been neglected and requires significant capital expenditures Other risks include the threat of a reduction in government subsidies potential competition from wireless providers costly pension obligations the costs of unionized workers and customers angry about the quality of service However despite the risks there are a lot of stakeholders that want the company to remain a going concerns such as the government regulators the customers that have no other viable phone and data options and the investors and management that have skin in the game
Conclusion
If it s big safe yield that you re after consider Frontier s high yield bonds not the stock Frontier will cut the huge dividend on its stock long before it defaults on its debt And if you are interested in more companies with big dividends and a high level of fearful investors like Frontier consider this list of Lastly and most importantly don t subject yourself to unnecessary risk unless you want to such as is the case with Frontier s stock |
VZ | Frontier Communications FTR Q4 Loss Wider Than Expected | Frontier Communications Corp NYSE T reported disappointing financial results in the fourth quarter of 2016 The company s adjusted net loss was wider than the Zacks Consensus Estimate and revenues also fell short of the mark On a GAAP basis net loss in the reported quarter was 133 million or a loss of 12 cents per share compared with a net loss of 156 million or 14 cents per share in the prior year quarter However quarterly adjusted excluding special items loss per share was 4 cents a penny higher than the Zacks Consensus Estimate Total revenues increased a whopping 70 5 year over year to 2 409 million The significant jump in revenues can primarily be attributable to the acquisition of certain wireline assets from Verizon Communications Inc NYSE VZ However the figure lagged the Zacks Consensus Estimate of 2 500 3 million Segment wise Customer revenue totaled 2 210 million up a substantial 83 1 year over year while Switched access and subsidy revenues were 199 million down 3 4 year over year Within the Customer segment voice services revenues totaled 774 million climbing 60 6 Data and Internet services revenues came in at 1 013 million advancing 72 video revenues were 365 million soaring an astounding 414 1 and Other revenues totaled 58 million down 10 8 Category wise Residential revenues were 1 196 million up a massive 101 3 while Business revenues came in at 1 014 million up 65 4 Operating income in the fourth quarter increased 40 1 year over year to 255 million Quarterly operating expenses were 2 154 million rising 75 year over year Quarterly adjusted EBITDA was 966 million up a considerable 61 year over year However adjusted EBITDA margin was 40 compared with 42 5 in the prior year quarter Frontier Communications currently carries a Zacks Rank 5 Strong Sell Frontier Communications faces intense competition from large telecom operators like AT T Inc NYSE T and Comcast Corp NASDAQ CMCSA Both the stocks currently carry a Zacks Rank 3 Hold You can see Cash Flow In the fourth quarter of 2016 Frontier Communications generated 714 million of cash from operations compared with 341 million in the prior year quarter Free cash flow in the reported quarter was 316 million compared with 243 million in the year ago quarter LiquidityFrontier Communications exited 2016 with 522 million of cash and cash equivalents compared with 936 million at 2015 end Total debt at the end of 2016 was 17 923 million compared with 15 892 million at the end of 2015 At 2016 end the debt to capitalization ratio was 0 79 compared with 0 80 at the end of 2015 Subscriber StatisticsAs of Dec 31 2016 the number of residential customers decreased 2 9 sequentially to 4 891 000 The average monthly residential revenue per customer was 80 33 down 2 5 sequentially Residential customer monthly churn was 2 08 remains flat sequentially Business customers decreased 2 7 sequentially to 502 000 The average monthly business revenue per customer was 665 04 down 0 05 sequentially Frontier Communications had 4 271 000 high speed broadband subscribers down 2 1 sequentially and 1 419 000 video customers down 5 6 sequentially OutlookFor 2017 Frontier Communications expects adjusted free cash flow in the range of 800 to 1 000 million Capital expenditures will be in the 1 000 to 1 250 million range Cash taxes will be 0 to 50 million Frontier Communications Corporation NASDAQ FTR Price Consensus and EPS Surprise
A Full Blown Technological Breakthrough in the Making Zacks Aggressive Growth Strategist Brian Bolan explores autonomous cars in our latest Special Report Driverless Cars Your Roadmap to Mega Profits Today In addition to who will be selling them and how the auto industry will be impacted Brian reveals 8 stocks with tremendous gain potential to feed off this phenomenon |
VZ | Verizon raises wireless plan rates offers more data | NEW YORK Reuters Verizon Communications Inc N VZ the No 1 U S wireless provider said on Wednesday that it would increase plan rates but expand data buckets by 30 percent to its customers who increasingly consume content through mobile devices
The company has also revamped its My Verizon app to let customers control data overages and billing as well as manage plans it said In addition it will let customers carry unused data over to the next month and begin offering users on certain plans unlimited text and calling to and from Mexico and Canada |
CSCO | Cisco Outlook Takes Trade War Hit | Cisco NASDAQ CSCO reported revenue and earnings that barely exceeded the Zacks Consensus Estimates by 1 3 and 0 4 respectively But investors are generally more concerned about orders because they are indicative of future performance That s where Cisco under delivered
A quick look at the earnings call slides clearly shows that the softness is attributable to the APJC Asia Pac basically segment with service provider and enterprise customers being the major pressure
Service provider issues are nothing new These customers are cash constrained From a geographic viewpoint however it s clear that APJC played spoil sport with difficult comps in India and continued weakness in China Segment orders were down 21
The 2 decline in enterprise orders was the other negative with the commentary around it being more disturbing It appears that the Chinese government isn t inviting bids from Cisco any longer and management says it s related to the trade war Chinese actions accounted for a point or half of the decline in enterprise orders
But that isn t true of the technology sector as a whole The sector has huge and growing exposure to China by virtue of its being the place where the largest chunk of the world s population is located and because it s still in the developing country category To get unceremoniously kicked out of that growth just can t be good or desirable
Don t Bet Against Cisco Though
China thankfully accounts for just 3 of its business and Asia Pac generates lower margins for the company So the geographic mix was positive for the gross margin last quarter The continued mix shift favoring software was also positive
Second the transition to a subscription model is largely complete with 70 of all software revenue now coming through it The company is including software and security in a growing number of services which is helping subscription revenue The recurring revenue model lends stability to a business that was earlier harnessed to high end hardware
As far as product categories are concerned infrastructure of course remains the largest segment by far with switching strength at on premise and data center customers and routing hurt by service provider weakness The applications business was up double digits across segments
And finally the stock has taken enough of a beating of late so its valuation currently looks attractive both with respect to the S P 500 and the technology sector Moreover it s also trading close to its 52 week low
Recommendations
Cisco shares carry a Zacks Rank 3 Hold Better picks include Axalta Coating Systems Ltd NYSE AXTA Ennis Inc NYSE EBF Integer Holdings Corp NYSE ITGR Pilgrim s Pride Corp NASDAQ PPC since they have a Zacks Rank 1 Strong Buy Or see the the complete list of today s Zacks 1 Rank Strong Buy stocks here
Today s Best Stocks from Zacks
Would you like to see the updated picks from our best market beating strategies From 2017 through 2018 while the S P 500 gained 15 8 five of our screens returned 38 0 61 3 61 6 68 1 and 98 3
This outperformance has not just been a recent phenomenon From 2000 2018 while the S P averaged 4 8 per year our top strategies averaged up to 56 2 per year |
CSCO | The Zacks Analyst Blog Highlights Cisco Axalta Coating Ennis Integer And Pilgrim s Pride | For Immediate ReleaseChicago IL August 19 2019 Zacks com announces the list of stocks featured in the Analyst Blog Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets Stocks recently featured in the blog include Cisco NASDAQ CSCO Axalta Coating Systems Ltd NYSE AXTA Ennis Inc NYSE EBF Integer Holdings Corp NYSE ITGR Pilgrim s Pride Corp NASDAQ PPC Here are highlights from Friday s Analyst Blog Cisco Outlook Takes Trade War HitCisco reported revenue and earnings that barely exceeded the Zacks Consensus Estimates by 1 3 and 0 4 respectively But investors are generally more concerned about orders because they are indicative of future performance That s where Cisco under delivered A quick look at the earnings call slides clearly shows that the softness is attributable to the APJC Asia Pac basically segment with service provider and enterprise customers being the major pressure Service provider issues are nothing new These customers are cash constrained From a geographic viewpoint however it s clear that APJC played spoil sport with difficult comps in India and continued weakness in China Segment orders were down 21 The 2 decline in enterprise orders was the other negative with the commentary around it being more disturbing It appears that the Chinese government isn t inviting bids from Cisco any longer and management says it s related to the trade war Chinese actions accounted for a point or half of the decline in enterprise orders But that isn t true of the technology sector as a whole The sector has huge and growing exposure to China by virtue of its being the place where the largest chunk of the world s population is located and because it s still in the developing country category To get unceremoniously kicked out of that growth just can t be good or desirable Don t Bet Against Cisco ThoughChina thankfully accounts for just 3 of its business and Asia Pac generates lower margins for the company So the geographic mix was positive for the gross margin last quarter The continued mix shift favoring software was also positive Second the transition to a subscription model is largely complete with 70 of all software revenue now coming through it The company is including software and security in a growing number of services which is helping subscription revenue The recurring revenue model lends stability to a business that was earlier harnessed to high end hardware As far as product categories are concerned infrastructure of course remains the largest segment by far with switching strength at on premise and data center customers and routing hurt by service provider weakness The applications business was up double digits across segments And finally the stock has taken enough of a beating of late so its valuation currently looks attractive both with respect to the S P 500 and the technology sector Moreover it s also trading close to its 52 week low RecommendationsCisco shares carry a Zacks Rank 3 Hold Better picks include Axalta Coating Systems Ltd Ennis Inc Integer Holdings Corp Pilgrim s Pride Corp since they have a Zacks Rank 1 Strong Buy Or see the complete list of today s Zacks 1 Rank Strong Buy stocks here Today s Best Stocks from ZacksWould you like to see the updated picks from our best market beating strategies From 2017 through 2018 while the S P 500 gained 15 8 five of our screens returned 38 0 61 3 61 6 68 1 and 98 3 This outperformance has not just been a recent phenomenon From 2000 2018 while the S P averaged 4 8 per year our top strategies averaged up to 56 2 per year Media ContactZacks Investment Research800 767 3771 ext 9339 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 | Beaten Down Top Ranked Tech ETFs To Buy Now | The technology sector has been one of the biggest victims of the recent market rout triggered by escalation in U S China trade war and inversion of the yield curve In particular the technology companies have large exposure to China Additionally increased regulatory concerns also took toll on the sector This has made the sector attractive to investors Additionally the macro fundamentals seem to be recovering this week given the renewed trade optimism and global easy policies In the latest trade development Washington extended a 90 day temporary license allowing China s Huawei Technologies to continue doing business with U S firms Trade talks between the United States and China are also set to resume anytime soon read Further the sector outlook looks promising with the rapid adoption of cutting edge technology such as cloud computing big data Internet of Things wearables VR headsets drones virtual reality AI and machine that will fuel growth The deployment of 5G technology the next wireless revolution is creating further opportunities The wave of mergers and acquisitions is also providing further impetus to the space As such investors should take advantage of the beaten down prices For them we have highlighted some solid ETF picks that were in red over the past month but have a solid upside potential All these have a Zacks Rank 1 Strong Buy or 2 Buy SPDR S P Internet ETF Down 10 1 This product targets the Internet corner of the broad tech space and follows the S P Internet Select Industry Index It charges 35 bps in annual fees and trades in a volume of 6 000 shares With AUM of 27 8 million the fund holds 44 stocks in its basket and carries a Zacks ETF Rank 2 read iShares North American Tech Multimedia Networking ETF ASX IGN Down 9 8 This ETF provides exposure to telecom equipment data networking and wireless equipment companies by tracking the S P North American Technology Multimedia Networking Index It holds 22 securities in its basket and has accumulated 111 2 million in its asset base Expense ratio comes in at 0 46 The product sees a lower volume of around 49 000 shares a day and carries a Zacks ETF Rank 1 with a High risk outlookInvesco Dynamic Networking ETF Down 8 2 This fund follows the Dynamic Networking Intellidex Index and offers exposure to 30 companies that are principally engaged in the development manufacture sale or distribution of products services or technologies that support the flow of electronic information including voice data images and commercial transactions The fund is relatively unpopular and illiquid in the broad technology space with AUM of 64 2 million and average daily volume of about 14 000 shares It charges 63 bps in annual fees and has a Zacks ETF Rank 2 with a High risk outlook read First Trust Dow Jones Internet Index Down 7 8 This ETF tracks the Dow Jones Internet Composite Index which includes only companies whose primary focus is Internet related It is one of the most popular and liquid ETFs in the broad tech space with AUM of 8 1 billion and average daily volume of around 490 000 shares The fund holds 42 stocks in its basket and charges 52 bps in fees per year It has a Zacks ETF Rank 2 with a High risk outlook John Hancock Multi Factor Technology ETF Down 5 7 This fund focuses on the time tested multifactor approach that emphasizes factors smaller cap lower relative price and higher profitability that academic research has linked to higher expected return It follows the John Hancock Dimensional Technology Index holding 126 stocks The fund has accumulated 56 4 million in AUM while charging 40 bps in fees per year Volume is light at around 7 000 shares a day JHMT has a Zacks ETF Rank 2 with a High risk outlook read First Trust NASDAQ 100 Technology Sector Index Fund Down 5 6 This ETF follows the NASDAQ 100 Technology Sector Index holding 39 stocks in its basket It has amassed 2 4 billion in its asset base while trades in average daily volume of 199 000 shares The fund charges 57 bps in annual fees and has a Zacks ETF Rank 2 with a High risk outlook VanEck Vectors Semiconductor ETF Down 5 6 This fund targets the semiconductor corner of the broad tech space by tracking the MVIS US Listed Semiconductor 25 Index It is a home to 25 securities and trades in average daily volume of 6 8 million shares The product has managed assets worth 1 4 billion and charges 35 bps in annual fees and expenses It has a Zacks ETF Rank 2 with a High risk outlook iShares Expanded Tech Software Sector ETF MI IGV Down 5 4 This ETF provides exposure to software companies in the technology and communication services sectors by tracking the S P North American Expanded Technology Software Index The fund holds a basket of 99 securities and charges 46 bps in annual fees It is popular with AUM of 2 7 billion and volume is good as it exchanges nearly 512 000 shares a day The product has a Zacks ETF Rank 1 with a High risk outlook 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 | Blockchain network IOTA teams up with Cisco Volkswagen others on data marketplace | By Gertrude Chavez Dreyfuss NEW YORK Reuters IOTA an open source blockchain network has teamed up with some of the biggest global corporate names led by Cisco Systems Inc NASDAQ CSCO Volkswagen DE VOWG p AG and Samsung KS 005930 Group to launch what is aimed to be a secure marketplace for data IOTA co founder David S nsteb said on Tuesday Blockchain is a digital ledger of transactions that underpinned the first crypto currency bitcoin It has gained worldwide prominence due to its perceived usefulness in recording and keeping track of assets across all industries The data marketplace is a completely separate project that simply utilizes the underlying IOTA protocol said S nsteb in emailed responses to Reuters IOTA is headquartered in Berlin China s Huawei group a multinational networking and telecommunications company is also part of the data marketplace project IOTA said The project aims to create a market for data that companies can buy and sell IOTA said more than 2 5 quintillion bytes of data are generated daily and are increasing exponentially on a monthly basis However more than 99 percent of this data is wasted and lost to the void because there is currently no ability for owners to sell or share this data in a secure fashion Any kind of data can be monetized S nsteb said If you have a weather station collecting wind temperature humidity and barometric data for instance you can sell that to an entity that is doing climatic research As soon as data is put onto IOTA s decentralized ledger it is distributed to countless nodes or the computers that connect to the blockchain network ensuring that it is impossible to tamper with the data S nsteb said Each of IOTA s partners on the marketplace project will provide data within their sector The goal is to enable a very diverse and open data marketplace which incentivizes a free flow of data between entities S nsteb said The IOTA network has been live since 2016 the IOTA co founder said in an earlier interview with Reuters It did a crowdfunding event in 2015 so that people could support the project raising more than 1 300 bitcoins he said IOTA is kind of the first distributed ledger that goes beyond the blockchain S nsteb said
We got rid of the blocks and we got rid of the chains which has resulted in getting rid of the major pain points or limitations of the blockchain such as fees scalability and centralization |
CSCO | Top 5 Things to Know in the Market on Friday | Investing com Here are the top five things you need to know in financial markets on Friday December 1
1 Dollar under pressure as tax reform hits snag
The dollar registered choppy trade around the unchanged mark wavering between gains and losses as it attempted to break what would be a string of three day declines after the U S Senate suspended voting on the tax reform bill until later on Friday as conversations to win a majority vote broke down
Stocks did react positively to news that Senator John McCain offered support for the legislation with U S Treasury yields hitting five week highs but caution appeared to reign on Friday as market participants awaited the rubber stamp
Markets have been following progress on tax reform closely with several major companies such as Cisco Systems NASDAQ CSCO Coca Cola or Pfizer NYSE PFE having stated that the benefits of the corporate tax reduction will be passed on to shareholders Economists are skeptical that the changes will have a major impact on the economy
At 6 00AM ET 11 00GMT the U S dollar index which measures the greenback s strength against a trade weighted basket of six major currencies inched up 0 06 at 93 03
2 Eyes on Fedspeak and manufacturing activity
Apart from progress on tax reform investors in the dollar will be keeping a close eye on the continuing flow of remarks from Federal Reserve policymakers
St Louis Fed president James Bullard will be speaking on monetary policy and the U S economy at 9 05AM ET 14 05GMT Friday
Dallas Fed chief Robert Kaplan will participate in a Q A in a symposium at 9 30AM ET 14 30GMT On Thursday Kaplan expressed his view that the Fed should move forward on the next rate hike in the near future given the positive conditions in the labor market
Philadelphia Fed president Patrick Harker will discuss inclusive economic growth on Friday at a forum at 10 15AM ET 15 15GMT
Also on Friday s economic calendar the ISM manufacturing purchasing managers index PMI for November and October construction spending will be released at 10 00AM ET 15 00GMT
3 Caution holds global stocks at bay
Global stocks were mostly lower on Friday with U S futures pointing to a lower open After the S P closed at a record high and the Dow broke above the 24 000 mark for the first time on Thursday investors switched to a cautious stance while waiting for the U S Senate to move ahead on tax reform At 6 02AM ET 10 02GMT the blue chip Dow futures fell by 98 points or 0 40
S P 500 futures lost 15 points or 0 56 while the Nasdaq 100 futures traded down 55 points or 0 87
Elsewhere Europe s financial stocks wilted after a delayed vote on tax reform in the U S deflated a rally in the sector also driving regional benchmarks to start December on the back foot Both the benchmark Euro Stoxx 50 and Germany s DAX were off more than 1 by 6 04AM ET 10 04GMT though London s FTSE 100 showed lesser losses of around 0 4
Earlier Asian stocks moved to intraday highs after Wall Street s strong close only to pare gains into the close as caution over the U S tax reform settled in
4 Oil continues longest monthly winning streak since 2016
Oil prices started December off with solid gains on Friday following up on a streak of three straight monthly gains its longest since early 2016
The bullish trend continued after the Organization of Petroleum Exporting Countries OPEC and non OPEC members led by Russia followed market expectations and agreed to extend their supply cuts from March 2018 through to the end of next year
Oil has risen around 17 since the last time producers gathered for an official meeting back in late May with major oil producers not scheduled for another round of negotiations until June
Saudi energy minister Khalid al Falih said inventories were expected to decline to the desired targets in the second half of 2018 although he admitted that production from other areas such as U S shale output remained an unknown
In that light market participants will keep an eye on Baker Hughes most recent weekly rig count data to be released later on Friday
At 6 05AM ET 10 05GMT U S crude oil futures gained 0 66 to 57 78 while Brent oil traded up 0 83 to 63 18
5 European manufacturing activity soars to 17 year high
Ahead of the U S ISM manufacturing PMIs Euro zone production lines grew at their fastest rate in 17 years in November Led by Germany the headline index for the euro area hit 60 1 last month the second highest level on record after April 2000
The reading for the UK also showed the strongest growth in four years in November The British manufacturing PMI rose to 58 2 last month beating expectations for a reading of 56 5 and bolstering optimism over the UK economy |
VZ | Unions ratify Verizon landline labor contract | By Malathi Nayak NEW YORK Reuters The unions representing nearly 40 000 wireline workers of Verizon Communications Inc N VZ ratified a new labor deal on Friday ending a months long dispute that led to an employee strike that lasted nearly seven weeks the company said
The new contract will run until August 3 2019 Last month a tentative deal was reached between Verizon and representatives of the striking unions that included 1 400 new jobs and pay raises topping 10 percent |
CSCO | Cisco Systems CSCO Surpasses Q4 Earnings And Revenue Estimates | Cisco Systems NASDAQ CSCO came out with quarterly earnings of 0 83 per share beating the Zacks Consensus Estimate of 0 82 per share This compares to earnings of 0 70 per share a year ago These figures are adjusted for non recurring items
This quarterly report represents an earnings surprise of 1 22 A quarter ago it was expected that this seller of routers switches software and services would post earnings of 0 77 per share when it actually produced earnings of 0 78 delivering a surprise of 1 30
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 43 billion for the quarter ended July 2019 surpassing the Zacks Consensus Estimate by 0 39 This compares to year ago revenues of 12 84 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 21 7 since the beginning of the year versus the S P 500 s gain of 16 7
What s Next for Cisco
While Cisco has outperformed 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 82 on 13 37 billion in revenues for the coming quarter and 3 42 on 53 68 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 top 44 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 | Cisco Systems CSCO Q4 Earnings Revenues Beat Estimates | Cisco Systems NASDAQ CSCO reported fourth quarter fiscal 2019 non GAAP earnings of 83 cents per share which beat the Zacks Consensus Estimate by a penny Further the figure rose 19 from the year ago quarter Revenues increased 6 year over year excluding Service Provider Video Software Solutions SPVSS to 13 428 billion and surpassed the consensus estimate of 13 376 billion Acquisitions contributed 60 basis points bps to the top line in the reported quarter Strength witnessed in the company s Security and Applications segments drove the year over year growth Order strength and improving traction of the subscription based model were other tailwinds Notably during the second quarter of fiscal 2019 the company completed the divestiture of its SPVSS business Cisco Systems Inc Revenue Quarterly Top Line DetailsProducts 75 of total revenues jumped 7 to 10 12 billion Services 25 increased 4 to 3 31 billion driven by growth in software and solutions services Revenues from subscriptions represent 70 of the company s software revenues up 12 bps year over year Deferred product revenues were 6 6 billion down 18 from the year ago quarter Deferred service revenues were 11 7 billion up 2 Region wise Americas and EMEA revenues increased 9 and 7 year over year respectively However revenues from APJC decreased 4 Total emerging markets declined 8 and the BRICs plus Mexico fell 20 In terms of customer segments enterprise decreased 2 and service provider was down 21 However commercial and public sector rose 7 and 13 respectively Total product orders were flat on a year over year basis Cisco has realigned Product segments into four categories infrastructure platform applications security and other Wireless Switching Aid GrowthInfrastructure Platforms 58 6 of fiscal fourth quarter revenues comprise Switching NGN routing Wireless and Data Center solutions Revenues grew 6 from the year ago quarter to 7 876 billion The year over year increase can primarily be attributed to robust growth across switching wireless and data center business Switching revenues witnessed robust growth across campus and data center Adoption of new campus switch Cat9K and Nexus 9K was impressive Further wireless revenues improved on the back of company s Wave 2 offerings and Meraki solution Robust demand for the HyperFlex data center solution drove data center s double digit growth However routing declined mainly due to softness in service provider Management stated that the subscription based Catalyst 9000 switching platform has been adopted by several customers which aided them in becoming more flexible Moreover results benefited from persistent customer shift from 100G to 400G architectures Additionally rapid adoption of multi cloud infrastructures was a key catalyst AppDynamics Drives GrowthApplications 11 of fiscal fourth quarter revenues consist of Collaboration portfolio of Unified Communications UC Conferencing and TelePresence IoT and application software businesses such as AppDynamics and Jasper Revenues increased 11 from the year ago quarter to 1 487 billion The company had integrated its Cisco Spark with Webex Platform which enhanced Webex Meeting and enabled it to introduce Webex Teams fortifying the company s collaboration portfolio further Collaboration revenues rose primarily driven by growth across AppDynamics UC infrastructure and TelePresence endpoints Cisco recently unveiled AIOps leveraging AI ML and automation to offer enhanced customer experiences and higher business performance Security Remains StrongSecurity 5 of revenues climbed 14 to 714 million The growth can be attributed to solid demand witnessed by web security unified threat network security and advanced threat solutions The company is striving to leverage ML to deploy security platforms in order to mitigate online risks on a real time basis Other ProductsOther Products segment contains service provider video cloud and system management and various emerging technology offerings Revenues declined 4 to 42 million Acquisition A Key CatalystOn Jul 9 2019 Cisco expressed its intention to acquire Acacia Communications NASDAQ ACIA an optical networking technology company for 2 6 billion in cash and marketable securities Cisco anticipates the acquisition to close in the second half of next year subject to customary closing conditions Post the deal closure Acacia will join Cisco s Optical Systems and Optics group networking and security business Cisco also concluded the deal to buy Luxtera The company intends to deploy Luxtera s integrated optics technology capabilities across its robust network portfolio featuring capacities ranging from 100GbE Gigabit Ethernet to 400GbE This will enable Cisco to provide ultra high data heavy bandwidth services to CSPs and network service providers Further the deal will help Cisco to add more vital technology to its open source software in order to build networking machinery The company also announced that it has successfully closed the buyout of privately held Duo Security Further the integration of Duo s zero trust MFA technology with Cisco s network and cloud security platforms is likely to enhance security features and mitigate phishing incidents on devices This buyout will aid Cisco to deliver on its commitment of safeguarding customer data while focusing on people centric secure enterprise IT approach Operating DetailsNon GAAP gross margin expanded 230 bps from the year ago quarter to 65 5 On a non GAAP basis product gross margin and service gross margin came in at 64 7 and 67 9 compared with 61 9 and 67 2 reported a year ago respectively Non GAAP operating expenses were 4 4 billion up 11 year over year As a percentage of revenues operating expenses expanded 80 bps to 32 8 Non GAAP operating margin was up 140 bps year over year to 32 6 Balance Sheet and Cash FlowCisco exited the fiscal fourth quarter with cash cash equivalents and investments balance of almost 33 41 billion down from 34 64 billion in the prior year quarter Total debt short plus long was 24 67 billion compared with 23 69 billion in the previous quarter The company generated 3 9 billion cash flow from operations during the quarter under review In the fiscal fourth quarter Cisco returned 6 billion shares to shareholders in the form of share repurchase and dividend Furthermore the company declared a quarterly dividend of 35 cents per share GuidanceFor first quarter fiscal 2020 revenues are expected to grow 0 2 on a year over year basis Non GAAP earnings are anticipated between 80 cents and 82 cents per share The Zacks Consensus Estimate for earnings is pegged at 82 cents Non GAAP gross margin is expected in the range of 64 65 while operating margin is anticipated between 32 and 33 for the quarter Zacks Rank and Stocks to ConsiderCisco currently carries a Zacks Rank 3 Hold Some better ranked stocks in the broader technology sector worth considering are Chegg NYSE CHGG and Anixter International NYSE AXE Both the stocks flaunt a Zacks Rank 1 Strong Buy You can see Long term earnings growth rate for Chegg and Anixter is currently pegged at 30 and 8 respectively Breakout Biotech Stocks with Triple Digit Profit PotentialThe biotech sector is projected to surge beyond 775 billion by 2024 as scientists develop treatments for thousands of diseases They re also finding ways to edit the human genome to literally erase our vulnerability to these diseases Zacks has just released Century of Biology 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance Our recent biotech recommendations have produced gains of 98 119 and 164 in as little as 1 month The stocks in this report could perform even better |
VZ | Vanguard Telecom Services ETF Was Today s Worst Performer Down 1 37 | The Vanguard Telecommunication Services ETF NYSE VOX underperformed all other non leveraged non inverse exchange traded products in the U S today on a percentage basis producing a 1 37 one day return and trailing the wider markets by a total of 2 01 percentage points
Behind The Gains
VOX closed today at 100 11 per share down 1 39 1 37 Putting this move in context the S P 500 index largely considered the most popular and useful benchmark for equity performance closed up 1 45 0 64 on the day
VOX s trading volume today was a total of 206 235 shares which was a decrease of 23 versus its average daily trading volume of 269 122 Rising trading volume generally an indicator of increased demand for a particular security and is typically associated with a specific news event or trend that draws investors into or out of specific asset classes or sectors or subsectors within those classes
Including any dividends as well as today s losses VOX has now fallen a total of 0 04 year to date versus a 1 82 gain in the S P 500 during the same timeframe
A Look Under The Hood
Vanguard Telecommunication Services ETF is a Equity focused product issued by Vanguard Group Its expense ratio of 0 10 makes it the 3 cheapest ETF among 52 total funds in the category Vanguard is known for is ultra low expense ratios
VOX currently boasts 1 48B in assets under management AUM placing it 6 of 52 ETFs in its category and 230 of 1922 total ETFs in the U S exchange traded universe
The investment objective of the Vanguard Telecommunication Services Sector ETF seeks to track the performance of a benchmark index that measures the investment return of stocks in the telecommunication services sector which include companies that provide telephone data transmission cellular or wireless communication services
VOX s outsized exposure to AT T NYSE T and Verizon NYSE VZ down 1 5 and 4 4 today respectively are to blame for its unusual daily decline
VOX SMART Grade
VOX currently has an of A Strong Buy and is ranked 6 of 54 funds in the Technology Equities ETFs category |
VZ | AT T seeks to top Verizon as Yahoo reviews new bids sources | By Greg Roumeliotis Reuters Yahoo Inc N YHOO is set to put together a new shortlist of bidders for its core internet assets after several parties including Verizon Communications Inc N VZ and AT T Inc N T made second round offers people familiar with the matter said In a boon to the prospects of AT T and other bidders in the auction Verizon s offer was at the low end of those received despite the synergies it could benefit from thanks to its ownership of media unit AOL one of the people said No committed financing was required for second round bids and Yahoo will assemble in the coming days a new shortlist of bidders from which it will solicit binding offers the people said Earlier on Thursday CNBC reported citing sources that Verizon s bid of more than 3 5 billion was topped by multiple offers at or above 5 billion It did not name the parties that made the higher offers A group led by a founder of Quicken Loans Inc Dan Gilbert and backed by Berkshire Hathaway Inc N BRKa Chairman Warren Buffett also submitted an offer one of the Reuters sources said While some buyout firms dropped out of the race over concerns about whether Yahoo s internet assets would be viable as a standalone business TPG Capital LP and a consortium of Bain Capital Private Equity and Vista Equity Partners Management LLC made offers according to the sources The sources asked not to be identified because details of the auction are confidential Yahoo Verizon AT T TPG and Bain declined to comment while Quicken Loans and Vista did not immediately respond to requests for comment Verizon the largest U S wireless carrier is primarily interested in Yahoo s advertising technology tools and has been examining how the other assets up for sale such as search mail and messenger could be combined with the corresponding businesses of AOL which it acquired last year for 4 4 billion Reuters reported last month AT T which has been seeking to catch up with Verizon in advertising technology as it seeks to expand in mobile video offerings has been working with an investment bank on its bid according to one of the sources A sale of Yahoo s internet assets would leave the company just owning a 35 5 percent stake in Yahoo Japan as well as its 15 percent stake in Chinese e commerce company Alibaba Group Holding Ltd N BABA which accounts for most of its value
In December Yahoo scrapped plans to spin off its Alibaba stake after investors fretted over whether that transaction could have been carried out on a tax free basis |
CSCO | Chart Of The Day With Cisco Now A Buy Why Are Technicals Signaling A Fall | Cisco Systems the San Jose based networking products giant is due to report Q4 2019 results on Wednesday August 14 after the bell Expectations are for 1 14 EPS and 2 55 billion in revenue That s versus 1 76 EPS and 3 12 billion for the corresponding quarter last year
Over the past six years Cisco NASDAQ CSCO missed just once on EPS November 2013 and twice on earnings November 2018 and February 2019 The company is expected to beat again on Wednesady after it released a string of upward guidance revisions during the past quarter
During its previous report Cisco delivered stronger than expected earnings after the company adjusted prices and worked closely with suppliers to offset problems from the trade war with China On top of that the firm reduced its overall China revenue to just 3
Nevertheless shares of Cisco closed up 21 YTD on Friday barely any better than the 20 79 gains over the same time period from its benchmark index the NASDAQ 100 where its 2 731 weighting makes it the 7th heaviest of the index s 100 components
Why has a company that s seemingly pulled out all the stops to offset trade headwinds not been able to markedly outperform its broader index The technical charts can provide some insight on supply and demand
During last Monday s selloff the stock fell below its rising channel since April after having already fallen below its uptrend line on July 31 in place since the Christmas Eve rout Conversely its index the NASDAQ 100 found support off its uptrend line of the same period bouncing off it and confirming the uptrend
Moreover after finding support by the 200 DMA which realigned with the May lows the price consolidated with an upward bias After the double digit selloff the week before this rising congestion has all the telltale signs of a setup for another leg in the downturn
This scenario fits with the technical pattern a rising flag bearish after a leg down subsequent to breaking the support of the channel bottom whose current resistance was confirmed with Friday s fall and before attempting to take on the 200 DMA for the second time Note the volume as well it dried up in the previous rally and spiked amid the selloff
Volume has also been falling against the rising flag another sign that demand is drying up This is further evidence of a coming flag pattern completion with a downside breakout
Why has Cisco not been able to separate away from the sector despite its greater independence from Chinese revenue Though we don t know for sure an assumption can be made that the company is now hampered by residual negative sentiment for which Cisco is not at fault
Or maybe this price action is being driven by informed money people who may be close to the inner circle and have picked up on negative rumors Meanwhile ironically of 30 analysts 21 now have a buy rating on the stock with zero providing a sell
If there s a downside breakout of the flag however we ll be the first to call a sell signal
Trading StrategiesConservative traders might wait for weekly falling peaks and troughs to establish a long term downtrend
Moderate traders could enter a short position after the price falls below the 200 DMA and finds resistance upon a return move
Aggressive traders might be content to short the stock with a downside breakout below 52
Entry Sample Short Setup
Entry 53Stop Loss 53 50Risk 0 5Target 51 50Reward 1 50Risk Reward Ratio 1 3 |
CSCO | Should You Buy Cisco Systems CSCO Ahead Of Earnings | Investors are always looking for stocks that are poised to beat at earnings season and Cisco Systems Inc NASDAQ CSCO may be one such company The firm has earnings coming up pretty soon and events are shaping up quite nicely for their report That is because Cisco Systems is seeing favorable earnings estimate revision activity as of late which is generally a precursor to an earnings beat After all analysts raising estimates right before earnings with the most up to date information possible is a pretty good indicator of some favorable trends underneath the surface for CSCO in this report In fact the Most Accurate Estimate for the current quarter is currently higher than the broader Zacks Consensus Estimate of 82 cents per share This suggests that analysts have very recently bumped up their estimates for CSCO giving the stock a Zacks Earnings ESP of 0 41 heading into earnings season Cisco Systems Inc Price and EPS Surprise Why is this Important A positive reading for the Zacks Earnings ESP has proven to be very powerful in producing both positive surprises and outperforming the market Our recent 10 year backtest shows that stocks that have a positive Earnings ESP and a Zacks Rank 3 Hold or better show a positive surprise nearly 70 of the time and have returned over 28 on average in annual returns see more Given that CSCO has a Zacks Rank 3 Hold and an ESP in positive territory investors might want to consider this stock ahead of earnings You can see Clearly recent earnings estimate revisions suggest that good things are ahead for Cisco Systems and that a beat might be in the cards for the upcoming report Today s Best Stocks from ZacksWould you like to see the updated picks from our best market beating strategies From 2017 through 2018 while the S P 500 gained 15 8 five of our screens returned 38 0 61 3 61 6 68 1 and 98 3 This outperformance has not just been a recent phenomenon From 2000 2018 while the S P averaged 4 8 per year our top strategies averaged up to 56 2 per year |
VZ | Crown Castle CCI Wireless Prospects Bright revised | On Nov 30 we issued an updated research report on Crown Castle International Corp NYSE CCI An extensive tower portfolio high demand for tower infrastructure strong business outlook healthy leasing activity and growing demand for mobile broadband which are likely to benefit the company going forward Wireless Demand StrongWireless services are advancing rapidly in terms of additional features and capabilities Much of the infrastructure and upgrades require effective site management of cell towers and equipment Crown Castle effectively addresses this opportunity as 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 Additionally wireless consumer demand is expected to increase considerably over the next several years which should bolster the company s top line going forward Small Cell InvestmentLast year Crown Castle completed the acquisition of Sunesys a major fiber service provider with a portfolio comprising around 10 000 miles of fiber We believe that the Sunesys acquisition should further strengthen Crown Castle s leading position in small cell networks Internet of Things 5G Prospects BrightAs wireless network providers work to make 5G network services a reality the deployment of the same will drive growth on both the company s tower and small cell assets as wireless carriers look to expand their networks to provide the coverage capacity and speed needed to support mobile video the Internet of Things IoT and fixed wireless broadband services Notably IoT is touted as the next big thing in the evolution of technology and higher investment by the wireless carriers will in turn bring increased revenues going forward Potential HeadwindsCrownCastle faces high customer concentration Notably the four major wireless service providers account for majority of the company s revenues Further evolution of new technologies like Voice over WiFi may reduce demand for site leases We are reissuing this article to correct a mistake The original article issued November 30 2016 should no longer be relied upon |
VZ | Will Verizon VZ Lead In 5G With Small Cell Dark Fiber | U S telecom behemoth Verizon Communications Inc NYSE VZ is emphasizing on its upcoming 5G fixed wireless network to counter rising competition in the domestic wireless market The industry is already working on 5G to reap maximum benefits from it Other U S telecom behemoths Sprint Corp NYSE S T Mobile US NYSE T and AT T Inc NYSE T are all moving ahead with their plans and aim to launch their 5G networks in the upcoming years They have either tested or are in the process of testing 5G technology However Verizon seems to have the lead as evident from its plans to launch its 5G services initially in small towns in the first quarter of 2017 The company claims that its small cell densification and expansion of its dark fiber footprint strategy will help it to have a competitive edge over others To this end Verizon is engaged in reframing spectrum using updated technology like C RAN CloudRAN or Centralized RAN massive MIMO Multiple Input Multiple Output and carrier aggregation Further Verizon has been focusing on improving its terms with the municipalities as it is one of the core requirements to build out dense small cell networks Additionally the recent approval from the U S telecom regulator Federal Communications Commission FCC for the 1 8 billion deal to purchase XO Communications Inc s fiber optic network also bodes well for the company Notably the FCC had allowed Verizon to enter a lease to use XO Communications wireless spectrum licenses for 5G deployment This XO deal is expected to expand Verizon s metro and on net fiber as well as millimeter wave wireless spectrum holdings in several major markets XO Communications operates as a fiber based IP and Ethernet network consisting of 20 000 route mile intercity network in the U S and Canada The XO Communications acquisition will help Verizon serve three of its main domains business services consumer FiOS and as a backhaul for its upcoming 5G wireless services In addition XO Communications fiber assets will allow the company to enhance its dark fiber based solutions for its small cell network The densification of cell network will help the company to install and build its upcoming 5G network Meanwhile Sprint is also strengthening its dark fiber network for small cell wireless backhaul The increase in the adoption of small cells is because of the inconvenience of installing large towers in inaccessible areas Verizon stated that the small cells will be used to augment its existing 4G LTE and upcoming 5G network and will primarily concentrate on high traffic locations like a business district or a shopping mall Verizon expects that the small cells will increase its voice capacity and data speeds and will complement its current LTE infrastructure However providing emergency power backup remains a major headwind for small cells Price PerformanceShares of Verizon have had a moderate run so far in the current year Year to date Verizon has gained 11 16 but lagged the Zacks categorized U S wireless national industry s growth of 19 94
Verizon currently carries a Zacks Rank 3 Hold You can see The Best Place to Start Your Stock Search Today you are invited to download the full list of 220 Zacks Rank 1 Strong Buy stocks absolutely free of charge Since 1988 Zacks Rank 1 stocks have nearly tripled the market with average gains of 26 per year Plus you can access the list of portfolio killing Zacks Rank 5 Strong Sells and other private research |
VZ | Verizon and unions reach tentative deal to end strike | By Malathi Nayak NEW YORK Reuters Verizon Communications Inc N VZ and unions representing nearly 40 000 wireline workers have reached a tentative deal to end a strike that has stretched for more than month U S Secretary of Labor Thomas Perez said on Friday Shares in Verizon the No 1 U S wireless company jumped as much as 1 2 percent after the announcement and in afternoon trading were up almost 1 percent at 50 62 The parties are now working to reduce the agreement to writing after which the proposal will be submitted to CWA and IBEW union members for ratification Perez said in a statement Workers will be back on their jobs next week Perez added Network technicians and customer service representatives in the company s Fios Internet telephone and television services units walked off the job on April 13 after contract talks hit an impasse The action was called by the Communications Workers of America and the International Brotherhood of Electrical Workers Sticking points in contract negotiations had included job relocations offshoring call center jobs pensions and healthcare coverage Verizon Communications and representatives from the two striking unions had been in contract discussions with the help of the U S Department of Labor In mid May Perez brought both parties back to the negotiating table The work stoppage at Verizon stretched across several U S East Coast states including New York Massachusetts and Virginia Verizon said it had trained thousands of non union employees over the past year to ensure no service disruption Verizon plans to report second quarter results on July 26 Company executives have hinted in recent weeks that the strike could pressure the bottom line The strike one of the largest in recent years drew the support of Democratic U S Presidential candidates Bernie Sanders and Hillary Clinton The workers had been without a contract since their agreement expired in August Their healthcare coverage ran out in the end of April Since the strike started the workers picketed outside Verizon stores and a handful of conferences attended by company executives The last contract negotiations in 2011 also led to a strike that ended in two weeks as the parties continued contract negotiations Verizon has shifted its focus in recent years to new efforts in mobile video and advertising while scaling back its Fios TV and Internet service
The company has stopped expanding its old landline phone network and the wireline unit generated about 29 percent of company revenue in 2015 down about 60 percent since 2000 |
VZ | Verizon unions agree to pay raises new jobs to end strike | By Chuck Mikolajczak Reuters An agreement between Verizon Communications Inc N VZ and unions potentially ending a nearly seven week strike includes 1 400 new jobs and pay raises topping 10 percent the company and unions representing about 40 000 workers said on Monday The deal which one analyst called very rich for Verizon workers could be a prelude to the company exiting the wireline telecommunications business transforming into a wireless internet business Verizon the No 1 U S wireless provider and the Communications Workers of America CWA had reached a tentative deal on Friday Details for the new four year contract were disclosed on Monday The CWA said Verizon agreed to provide a 10 9 percent raise over four years while Verizon put the increase at 10 5 percent According to the CWA both numbers are correct with the calculation done by the union including compounded interest that workers would receive as subsequent raises are determined from a new base salary They needed to end the strike and they bit the bullet said Roger Entner of Recon Analytics In my opinion it reinforced their commitment to basically exiting the least profitable most problematic part of the business The new contract gives Verizon four years basically to get rid of the unit Let it be somebody else s problem Entner said Nearly 40 000 network technicians and customer service representatives of the company s Fios internet telephone and television services units walked off the job on April 13 Striking workers will be back on the job on Wednesday the CWA said Joshua B Freeman labor historian and CUNY professor at Queens College in New York said he would call the contract a win for the union while noting the increasing rarity of a strike of that size and length These guys not only struck and survived but actually came out of it with a pretty good contract he said These days that is a very unusual thing to see that kind of walkout TENTATIVE NEW CONTRACT The workers have been without a contract since the agreement expired in August healthcare coverage ran out at the end of April In 2011 Verizon workers went on strike for two weeks after negotiations deadlocked The latest work stoppage stretched across states including New York Massachusetts and Virginia Verizon brought in thousands of temporary workers New York based Verizon will add 1 300 call center jobs on the East Coast and 100 new network technician jobs Verizon spokesman Richard Young said It will withdraw proposed cuts to pensions as well as reductions in accident and disability benefits The company however won cost savings through changes in healthcare plans and limits on post retirement health benefits If union members ratify the agreement the new contract would run until August 2019 Members of local unions will vote by mail at mass membership meetings and at walk in balloting meetings and all results are due back to the CWA by June 17 according to Bob Master assistant to the vice president at the CWA Master said We re pretty confident the members will be supportive of the agreement citing the closeness between the leadership and its members Verizon worker Fitzgerald Boyce 45 said he was likely to vote in favor I am extremely relieved that we have a good contract from what I am reading said Boyce a field technician who lives in Brooklyn New York To be able to keep our benefits and actually increase the number of union jobs is a great thing Verizon and the two striking unions were in contract discussions with the help of the U S Department of Labor In mid May U S Labor Secretary Thomas Perez brought the parties back to the negotiating table The strike one of the largest in recent years in the United States drew support from Democratic U S Presidential candidates Bernie Sanders and Hillary Clinton SHIFT TO MOBILE Verizon has shifted its focus in recent years to mobile video and advertising while scaling back its Fios television and internet services To tap new revenue it is boosting its advertising supported internet business and acquired AOL for 4 4 billion Verizon which claims a high quality cell network is locked in a battle for subscribers with AT T Inc N T Sprint Corp N S and T Mobile US Inc N TMUS in a saturated U S wireless market Verizon s legacy wireline business generated about 29 percent of company revenue in 2015 down about 60 percent since 2000 and less than 7 percent of operating income Verizon Chief Executive Officer Lowell McAdam said last week the strike could hurt second quarter results
Verizon shares closed up 1 percent at 50 62 on Friday and are up 9 5 percent for the year near its 52 week high of 54 49 U S markets were closed on Monday for the U S Memorial Day holiday |
VZ | U S futures inch up ahead of data that could affect Fed rate hike odds | Investing com Wall Street futures pointed to a slightly higher open on Tuesday after the long Memorial Day weekend and as markets looked ahead to a slew of data that may help define the timing of the Federal Reserve s Fed next move in the tightening of monetary policy
The blue chip Dow futures edged forward 12 points or 0 07 by 10 56AM GMT or 6 56AM ET the S P 500 futures was unchanged while the tech heavy Nasdaq 100 futures advanced 5 points or 0 10
The gains came after Wall Street closed on Friday with the biggest weekly gains since March in the case of the Dow and S P and since February in regard to the Nasdaq even after Fed chair Janet Yellen indicated that a rate hike was likely appropriate in the coming months
With the chances for a summer rate hike in June or July depending on whether the economy could continue to chug along and with the release of the monthly employment report at the end of this week market participants were set to eye a string of data on Tuesday that could further heighten expectations for Fed action
The Commerce Department will release its core personal consumption expenditure PCE index for April along with personal income and spending for the same month at 12 30GMT or 8 30AM ET
Afterwards data on business activity in the Chicago region is due at 13 45GMT or 9 45AM ET followed by the Conference Board s report on May consumer confidence at 14 00GMT or 10 00AM ET
Meanwhile oil prices showed mixed trade on Tuesday hovering near the 50 psychological level ahead to a key meeting of major oil producers later this week The Organization of the Petroleum Exporting Countries OPEC will meet on Thursday in Vienna although no dramatic announcement on a production cut is expected
U S crude futures rose 0 26 to 49 46 by 10 58AM GMT or 6 58AM ET while Brent oil traded down 0 50 to 50 10
In company news Verizon Communications Inc NYSE VZ reached an agreement with unions to include 1 400 new jobs along with salary increases in order to end a nearly seven week strike
Sodastream International Ltd NASDAQ SODA jumped almost 6 in the pre market after announcing its new Beer Bar which allows consumers to make home crafted beer using sparkling water and a beer concentrate
Elsewhere European stock markets were marginally lower but held near the prior day s one month peak as key euro zone inflation data and unemployment data came out in line with expectations ahead of the European Central Bank s monetary policy decision on Thursday
Earlier shares in Asia closed mostly higher led by strong gains in China where the CSI 300 surged 4 and the Shanghai Composite advanced 3 5 as investors bet that MSCI will add mainland shares to its index for the first time next month
Meanwhile the dollar index dipped slightly at 95 66 remaining within striking distance of a more than two month high of 95 95 struck in the previous session |
VZ | T Mobile offers a share of itself to customers launches gift app | By Malathi Nayak Reuters T Mobile US Inc O TMUS the No 3 U S wireless provider wants to turn its monthly subscribers into shareholders by offering them a share in the company s stock for free it said on Monday Shares of T Mobile closed 1 3 percent lower at 43 07 T Mobile which calls itself the Un carrier said in a statement it would offer a full share of T Mobile US TMUS common stock to millions of existing and new postpaid service customers The so called Stock Up plan is not available to prepaid customers This has never been done before by a public company Chief Executive John Legere said on a media call after the announcement Legere has led the rollout of a series of consumer friendly offers in the past three years such as the free video streaming option Binge On and data rollover plans some of which have been copied by rivals These have helped T Mobile gain market share as it fights a price war in an oversaturated wireless market with Verizon Communications Inc N VZ and AT T Inc N T as well as smaller competitor Sprint Corp N S T Mobile said in a statement it had also launched a T Mobile Tuesdays app to give its postpaid and prepaid customers weekly perks such as free food movie tickets and ride shares through partnerships with firms such as Domino s Pizza Inc N DPZ and Lyft It will also offer an hour of free Wi Fi to customers on domestic flights that have Gogo Wi Fi connectivity Postpaid customers who recommend T Mobile to friends can get another share for every new user who signs up and can get up to 100 shares a year the company said The latest offers will ensure T Mobile customers stay with the carrier and recommend it to friends Chief Marketing Officer Andrew Sherrard said in an interview Some free offers will cost us some money but over time we think it will be a really good investment T Mobile will not be issuing new shares for the Stock Up plan executives said on the media call
T Mobile s brokerage partner LOYAL3 will buy the carrier s shares and offer them to customers they added noting that the company would cover all associated charges Bellevue Washington based T Mobile controlled by Deutsche Telekom DE DTEGn said it added 2 2 million customers on a net basis in the first quarter ended March 31 |
CSCO | BlackBerry s patent strategy head exits joins health tech firm sources | By Alastair Sharp TORONTO Reuters The man who was leading BlackBerry Ltd s efforts to make money from its patent portfolio has left to join a health technology company two sources with knowledge of the move said on Monday Mark Kokes left the Canadian company last month to join privately held NantWorks LLC the sources said NantWorks was founded in 2011 by billionaire Patrick Soon Shiong and houses a string of startups looking to transform global health information and develop next generation pharmaceuticals Kokes is the second senior executive to move from BlackBerry to NantWorks this year following the May announcement that NantHealth Inc a publicly traded part of NantWorks had hired BlackBerry s president for devices and emerging solutions Ron Louks as its chief operating officer BlackBerry also saw its former head of acquisition strategy exit in February Kokes declined to comment when contacted by Reuters BlackBerry did not respond to a request for comment The sources declined to be identified as the information was private BlackBerry hired Kokes in mid 2014 to lead its patent monetization strategy as the Canadian handset maker turned software company looked to turn a trove of foundational technology patents collected in its heyday into hard cash to help augment its shrunken revenue In June 2015 the company announced a royalty bearing license deal with Cisco Systems Inc NASDAQ CSCO followed by others with Canon Inc and International Game Technology In 2016 it filed infringement suits against Avaya Nokia HE NOKIA and BLU Products Inc a manufacturer of low end Android phones In its most recent quarterly earnings report issued last Thursday BlackBerry said that it had recognized its first revenue from three recent licensing deals with Ford Motor NYSE F Co watchmaker Timex Group and BLU Licensing fees in the quarter which also include payments the company receives for BlackBerry branded phones made and sold by others were the primary driver of a software sales beat rising to 56 million from 16 million a year earlier NantWorks has job postings listed on its website for several patent related jobs including for a vice president of intellectual property prosecution and vice president of intellectual property technology Kokes LinkedIn NYSE LNKD profile still lists him as leading all aspects of BlackBerry s intellectual property strategy licensing IP venturing technology research and standardization activities
The news of Kokes departure was first reported by patent business media outlet IAM |
CSCO | BlackBerry patent licensing director says he has left company | By Alastair Sharp TORONTO Reuters A key attorney executing BlackBerry Ltd s patent licensing strategy has left the company the second recent departure from the team tasked with making money from the Canadian company s intellectual property Victor Schubert who was a licensing director for BlackBerry told Reuters in a brief LinkedIn NYSE LNKD message that he was no longer with the company He did not say when he left or why Monetizing the company s intellectual property is a key part of Chief Executive John Chen s plan for turning around the company whose revenues have declined for six straight years as sales of its once ubiquitous smartphones have tumbled Company representatives did not respond to requests for comment on Schubert Two switchboard operators at the Canadian company said his name was not in a global employee directory News of his exit follows the recent departure of Mark Kokes who lead BlackBerry s overall patent strategy Kokes last month joined a health technology company Schubert joined BlackBerry in March 2015 according to his LinkedIn profile as the company was embarking on a major push to boost licensing revenue BlackBerry is trying to persuade other companies to pay licensing royalties to use its trove of some 40 000 global patents on technology including operating systems networking infrastructure acoustics messaging automotive subsystems cybersecurity and wireless communications Schubert has created and executed patent licensing programs for at least four companies including BlackBerry dating back to 1992 according to his LinkedIn profile It lists portfolio mining patent valuation and negotiating patent sales as areas of expertise He was due to represent BlackBerry at a Seattle area patent conference next month to discuss how operating companies can make money off their intellectual property according to an agenda posted on the conference website in August He is no longer listed as a panelist BlackBerry disclosed it had secured royalty bearing deals with Cisco Systems Inc NASDAQ CSCO and another company that it did not name soon after Schubert joined It also filed patent infringement lawsuits during his tenure against Nokia HE NOKIA and Avaya Inc AVXX UL that are ongoing BlackBerry on Thursday disclosed that it had settled another lawsuit filed against low end Android phone manufacturer BLU Products Inc
Both companies declined to disclose terms of the deal |
VZ | Crown Castle CCI Wireless Prospects Bright Fx Woes Stay | On Nov 30 we issued an updated research report on Crown Castle International Corp NYSE CCI An extensive tower portfolio high demand for tower infrastructure strong business outlook healthy leasing activity and growing demand for mobile broadband which are likely to benefit the company going forward Wireless Demand StrongWireless services are advancing rapidly in terms of additional features and capabilities Much of the infrastructure and upgrades require effective site management of cell towers and equipment Crown Castle effectively addresses this opportunity as 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 Additionally wireless consumer demand is expected to increase considerably over the next several years which should bolster the company s top line going forward Small Cell InvestmentLast year Crown Castle completed the acquisition of Sunesys a major fiber service provider with a portfolio comprising around 10 000 miles of fiber We believe that the Sunesys acquisition should further strengthen Crown Castle s leading position in small cell networks Internet of Things 5G Prospects BrightAs wireless network providers work to make 5G network services a reality the deployment of the same will drive growth on both the company s tower and small cell assets as wireless carriers look to expand their networks to provide the coverage capacity and speed needed to support mobile video the Internet of Things IoT and fixed wireless broadband services Notably IoT is touted as the next big thing in the evolution of technology and higher investment by the wireless carriers will in turn bring increased revenues going forward Potential HeadwindsCrownCastlefaces high customer concentration Notably the four major wireless service providers account for majority of the company s revenues Further evolution of new technologies like Voice over WiFi may reduce demand for site leases Moreover owing to its extensive international presence Crown Castle is highly exposed to currency exchange rate risks Additionally volatility of the U S dollar and Australian dollar exchange rates may result in fluctuating future revenue trends owing to the company s significant presence in Australia CrownCastlecurrently has a Zacks Rank 3 Hold You can see CROWN CASTLE Price
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VZ | Verizon striking unions to continue talks U S Labor Dept says | Reuters Verizon Communications Inc N VZ and representatives from two striking unions will continue contract discussions in Washington this week with the help of the U S Department of Labor the regulator said The groups during these talks will not make any public statements nor will there be comments from the federal officials involved the Labor department said on Tuesday About 40 000 network technicians and customer service representatives in the company s Fios Internet telephone and television services unit walked off the job in mid April in the largest U S strike in recent years The action was called by the Communications Workers of America and the International Brotherhood of Electrical Workers Sticking points in contract negotiations had included offshoring call center jobs pensions and healthcare coverage I m encouraged by the parties continued commitment to remain at the bargaining table and work toward a resolution U S Secretary of Labor Thomas Perez said on Tuesday We will continue to facilitate conversations to help the unions and the company reach an agreement he added The company and the unions returned to the negotiating table after a weekend meeting with Perez Verizon and the unions could not be immediately reached for a comment |
VZ | Verizon CEO says strike may impact second quarter results | By Malathi Nayak Reuters Verizon Communications Inc N VZ Chief Executive Officer Lowell McAdam said on Tuesday the ongoing strike by the No 1 U S wireless provider s nearly 40 000 union employees could pressure second quarter results Network technicians and customer service representatives in the company s Fios Internet telephone and television services units walked off the job on April 13 in one of the largest U S strikes in recent years The action was called by the Communications Workers of America and the International Brotherhood of Electrical Workers The wireless and broadband provider has pushed off new Fios service installations as a result of the strike McAdam said at the J P Morgan Technology Media and Telecom conference in Boston We re doing a lot of installations but we re not doing the same volume that we had before Lowell said So we won t be driving similar numbers in second quarter that we would in first from an installation perspective Union members protested outside the conference venue on Tuesday The company has brought in managers and thousands of temporary workers aiming to avoid service disruptions Verizon s Chief Financial Officer Fran Shammo speaking at another conference last week said the company has been focusing on repair and maintenance issues and that new installations and orders had significantly dropped I would be optimistic if I said we would be net positive for broadband and TV this quarter Shammo said Verizon is expected to report second quarter results on July 26 In April it reported first quarter earnings and said the strike was expected to hurt second quarter earnings The company s legacy wireline business which includes Fios generated about 29 percent of company revenue in 2015 down about 60 percent since 2000 and less than 7 percent of operating income If the strike continues for an extended period of time it could pressure full year earnings Shammo told Reuters in April Verizon Communications and representatives from the two striking unions are in contract discussions with the help of the U S Department of Labor Sticking points in the talks include job relocations offshoring call center jobs pensions and healthcare coverage The groups will not make any public statements during these talks the Labor department said last week When it s done we will make sure to communicate with our investors about what the overall net net impacts are McAdam said at the J P Morgan conference
Verizon shares were little changed at 49 44 on Tuesday afternoon |
VZ | U S jobless claims fall more than expected last week | WASHINGTON Reuters The number of Americans filing for unemployment benefits fell more than expected last week moving back to near cycle lows as the labor markets remain healthy and the economy regains momentum after stumbling in the first quarter Initial claims for state unemployment benefits declined 10 000 to a seasonally adjusted 268 000 for the week ended May 21 the Labor Department said on Thursday Claims for the prior week were unrevised Economists polled by Reuters had forecast initial claims falling to 275 000 in the latest week Claims have now been below 300 000 a threshold associated with a strong job market for 64 straight weeks the longest stretch since 1973 While the two consecutive weeks of decline helped to unwind some of the jump in claims between late April and early May the trend in jobless claims has become less favorable The four week moving average of claims considered a better measure of labor market trends as it irons out week to week volatility rose 2 750 to 278 500 last week Economists blame a range of factors for the recent spike in claims including the different timing of school spring breaks which often makes it difficult to adjust the data An ongoing strike by Verizon N VZ workers as well as possible disruptions to manufacturing activity in the wake of recent earthquakes in Japan have also been cited Economists expect the strike by the about 40 000 Verizon employees will hurt May payrolls because they would be considered unemployed as they would not have received a paycheck during the survey period The government will release its closely watched employment report next Friday A Labor Department analyst said there were no special factors influencing last week s claims data and only claims for Wyoming had been estimated The claims report showed the number of people still receiving benefits after an initial week of aid rose 10 000 to 2 16 million in the week ended May 14 The four week average of the so called continuing claims increased 8 500 to 2 15 million The continuing claims data covered the period during which the government surveyed households for May s unemployment rate
The four week average of continuing claims fell 6 000 between the April and May survey periods That suggests little change in the unemployment rate which was at 5 0 percent in April |
VZ | Verizon strike seen cutting 35 000 jobs off U S May payrolls | WASHINGTON Reuters The strike by Verizon Communications Inc N VZ workers will likely trim U S nonfarm payroll growth in May by at least 35 000 jobs a Labor Department report showed on Friday The department s monthly strike report showed a total of 35 100 Verizon employees were idle during the survey period for the May payrolls count Striking workers who do not receive a paycheck during the reference period are treated as unemployed The Verizon workers including network technicians and customer service representatives in the company s Fios Internet telephone and television services unit walked off the job on April 13 in the largest U S strike in recent years The work stoppage is ongoing The Labor Department will publish its closely watched employment report on June 3
Economists polled by Reuters expect payrolls increased by 164 000 workers this month after rising 160 000 in April The unemployment rate is seen steady at 5 percent |
CSCO | Scientific Games SGMS Q2 Loss Widens Y Y Revenues Flat | Scientific Games Corporation NASDAQ SGMS reported second quarter 2019 loss of 83 cents per share much wider than the year ago quarter s loss of 6 cents The wider loss was primarily attributed to higher debt refinancing expenses and remeasurement of debt Revenues were 845 million flat year over year Growth in Lottery SciPlay and Digital segments was fully offset by lower Gaming revenues Services revenues increased 4 3 to 457 million Product sales declined 7 4 to 238 million Instant products revenues were flat year over year The Zacks Consensus Estimate for revenues and earnings was pegged at 860 million and 2 cents respectively Scientific Games shares decreased almost 1 1 to close at 20 55 on Aug 2 following dismal second quarter 2019 results However shares rebounded 2 8 to close at 21 13 on Aug 5 Shares have returned 18 2 year to date compared with the s growth of 20 2 Year to date Performance Quarter DetailsGaming revenues 50 5 of revenues declined 9 year over year to 427 million The year over year decline was primarily attributed to fewer casino openings and system launches Lower replacement sales also hurt top line growth During the quarter the company launched Twinstar Wave XL cabinet on a for sale model with six themes and the entire library of content from Twinstar J43 Lottery revenues 27 3 of revenues were up 24 year over year to 231 million The top line benefited from equipment sales as part of a recent 10 year sports betting contract in Turkey SciPlay revenues 14 of revenues increased 18 year over year to 118 million The segment benefited from increased monetization of paying players with ARPDAU up 14 to 48 cents Digital 8 2 of revenues revenues increased 3 year over year to 69 million Notably the digital casino platform processed more than 9 billion in total wagers in the reported quarter Operational DetailsConsolidated adjusted EBITDA AEBITDA decreased 1 5 year over year to 335 million primarily due to lower Gaming revenues AEBITDA margin stayed flat at 40 Gaming AEBITDA decreased 9 year over year to 215 million However Gaming AEBITDA margin was unchanged at 50 Lottery AEBITDA increased 12 from the year ago quarter to 103 million However Lottery AEBITDA margin contracted 300 basis points bps to 45 SciPlay AEBITDA jumped 44 to 33 million Moreover AEBITDA margin expanded 500 bps to 28 However Digital AEBITDA declined 8 from the year ago quarter to 12 million Digital AEBITDA margins contracted 200 bps on a year over year basis to 17 Selling general and administrative expenses were unchanged at 174 million on a year over year basis However research development expenses declined 6 1 to 46 million Balance Sheet Cash FlowAs of Jun 30 2019 cash and cash equivalents were 369 million compared with 1 21 billion as on Mar 31 2019 Net debt was 8 6 billion 9 billion in face value of debt outstanding less 369 million of cash and cash equivalents at the end of the second quarter The company reduced debt by 155 million in the reported quarter Net debt leverage ratio decreased 0 5 times on a year over year basis to 6 5 times Scientific Games targets net debt leverage of approximately 5 5 times by the end of 2020 Cash from operating activities was 95 million compared with 167 million in the previous quarter Free cash flow was 38 million compared with 96 million in the first quarter Zacks Rank Stocks to ConsiderScientific Games currently has a Zacks Rank 5 Strong Sell Amtech Systems NASDAQ ASYS CACI International NYSE CACI and Cisco Systems NASDAQ CSCO are some better ranked stocks in the broader computer and technology sector All three stocks have a Zacks Rank 2 Buy You can see While Amtech is set to release quarterly results on Aug 8 both CACI International and Cisco Systems are scheduled to report on Aug 14 The Hottest Tech Mega Trend of AllLast year it generated 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 regular investors who make the right trades early |
CSCO | Asure Software ASUR To Report Q2 Earnings What s In Store | Asure Software NASDAQ ASUR is set to release second quarter 2019 results on Aug 8 The company s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters the average positive surprise being 29 5 In the first quarter earnings of 22 cents per share beat the Zacks Consensus Estimate by a dime and jumped 69 2 year over year Revenues grew 39 year over year to 26 8 million and beat the consensus mark Notably recurring revenues accounted for 88 for total revenues Asure Software Inc Price and EPS Surprise
Let s see how things are shaping up prior to this announcementFactors to ConsiderAsure Software s second quarter results are expected to benefit from strong momentum in recurring revenues expanding clientele and increasing upsell and cross sell opportunities Moreover the company s SmartView workplace occupancy sensor system accurately captures environmental indicators around the office building including CO2 level lighting heating air conditioning and more The system has gained significant adoption within a short span of time In the last reported quarter Asure Software won a multiyear deal from a leading content delivery network company primarily owing to the SmartView sensor system Asure Software also a Silver Edison Award in the Energy and Sustainability category for Smart Climate Control due to the SmartView workplace occupancy sensor system in the to be reported quarter However seasonality the first quarter being the strongest due to onetime W 2 and ACA processing is anticipated to hurt the Human Capital Management business top line The Zacks Consensus Estimate for revenues is currently pegged at 24 6 million indicating 13 2 growth from the figure reported in the year ago quarter Moreover the Zacks Consensus Estimate for earnings stands at 7 cents unchanged over the past 30 days and indicates a decline of 50 from the figure reported in the year ago quarter What Our Model SaysAccording to the Zacks model a company with a Zacks Rank 1 Strong Buy 2 Buy or 3 Hold along with a positive has a good chance of beating estimates The Sell rated stocks Zacks Rank 4 or 5 are best avoided Asure Software has a Zacks Rank 3 and an Earnings ESP of 0 00 You can uncover the best stocks to buy or sell before they re reported with our Stocks With Favorable CombinationHere are some companies which per our model have the right combination of elements to post an earnings beat this quarter CACI International NYSE CACI has an Earnings ESP of 4 02 and a Zacks Rank 2 You can see Cisco Systems NASDAQ CSCO has an Earnings ESP of 1 53 and a Zacks Rank 2 GTT Communications NYSE GTT has an Earnings ESP of 144 44 and a Zacks Rank 3 The Hottest Tech Mega Trend of AllLast year it generated 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 regular investors who make the right trades early |
CSCO | Cisco Systems CSCO Earnings Expected To Grow Should You Buy | Cisco Systems NASDAQ CSCO is expected to deliver a year over year increase in earnings on higher revenues when it reports results for the quarter ended July 2019 This widely known consensus outlook gives a good sense of the company s earnings picture but how the actual results compare to these estimates is a powerful factor that could impact its near term stock price
The stock might move higher if these key numbers top expectations in the upcoming earnings report which is expected to be released on August 14 On the other hand if they miss the stock may move lower
While management s discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations it s worth having a handicapping insight into the odds of a positive EPS surprise
Zacks Consensus Estimate
This seller of routers switches software and services is expected to post quarterly earnings of 0 82 per share in its upcoming report which represents a year over year change of 17 1
Revenues are expected to be 13 39 billion up 4 2 from the year ago quarter
Estimate Revisions Trend
The consensus EPS estimate for the quarter has been revised 0 52 lower over the last 30 days to the current level This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period
Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change
Price Consensus and EPS Surprise
Earnings Whisper
Estimate revisions ahead of a company s earnings release offer clues to the business conditions for the period whose results are coming out This insight is at the core of our proprietary surprise prediction model the Zacks Earnings ESP Expected Surprise Prediction
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate The idea here is that analysts revising their estimates right before an earnings release have the latest information which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier
Thus a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate However the model s predictive power is significant for positive ESP readings only
A positive Earnings ESP is a strong predictor of an earnings beat particularly when combined with a Zacks Rank 1 Strong Buy 2 Buy or 3 Hold Our research shows that stocks with this combination produce a positive surprise nearly 70 of the time and a solid Zacks Rank actually increases the predictive power of Earnings ESP
Please note that a negative Earnings ESP reading is not indicative of an earnings miss Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and or Zacks Rank of 4 Sell or 5 Strong Sell
How Have the Numbers Shaped Up for Cisco
For Cisco the Most Accurate Estimate is higher than the Zacks Consensus Estimate suggesting that analysts have recently become bullish on the company s earnings prospects This has resulted in an Earnings ESP of 0 41
On the other hand the stock currently carries a Zacks Rank of 3
So this combination indicates that Cisco will most likely beat the consensus EPS estimate
Does Earnings Surprise History Hold Any Clue
Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings So it s worth taking a look at the surprise history for gauging its influence on the upcoming number
For the last reported quarter it was expected that Cisco would post earnings of 0 77 per share when it actually produced earnings of 0 78 delivering a surprise of 1 30
Over the last four quarters the company has beaten consensus EPS estimates four times
Bottom Line
An earnings beat or miss may not be the sole basis for a stock moving higher or lower Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors Similarly unforeseen catalysts help a number of stocks gain despite an earnings miss
That said betting on stocks that are expected to beat earnings expectations does increase the odds of success This is why it s worth checking a company s Earnings ESP and Zacks Rank ahead of its quarterly release Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they ve reported
Cisco appears a compelling earnings beat candidate However investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release |
CSCO | Cisco CEO Robbins to replace Chambers as chairman | The former CEO and now executive chairman of Cisco NASDAQ CSCO John Chambers won t stand for re election to the board when his term expires in December
Current CEO Chuck Robbins will replace Chambers as chairman
Source Press Release
Shares 0 35 premarket
Now read |
CSCO | Cisco s Executive Chairman Chambers not to seek re election | Reuters Cisco Systems Inc O CSCO said on Monday that Executive Chairman John Chambers would not seek re election after his term expires in December Chambers who lead the networking gear maker for two decades as its chief executive became the executive chairman in July 2015 Under his leadership Cisco s sales surged to about 48 billion from 1 2 billion in 1995 Cisco s CEO Chuck Robbins will become the chairman and Chambers 68 will be given the honorary title of Chairman Emeritus at the company s annual shareholder meeting in December |
CSCO | Hackers compromised free CCleaner software Avast s Piriform says | By Joseph Menn SAN FRANCISCO Reuters Hackers broke into British company Piriform Ltd s free software that optimizes computer performance last month potentially allowing them to control the devices of millions of users the company and independent researchers said on Monday More than 2 million people downloaded tainted versions of Piriform s program which then directed the computers to get instructions from servers under the hacker s control Piriform said Piriform said it worked with law enforcement and cut off communication to the servers before any malicious commands were detected This came after security researchers at Cisco Systems Inc O CSCO and Morphisec Ltd alerted Piriform s parent Avast Software of the hack last week The malicious program was slipped into legitimate software called CCleaner which cleans up junk programs and advertising cookies to speed up devices CCleaner is the main product made by London s Piriform which was bought in July by Prague based Avast one of the world s largest computer security vendors At the time of the acquisition the company said 130 million people used CCleaner A version of CCleaner downloaded in August and September included remote administration tools that tried to connect to several unregistered web pages presumably to download additional unauthorized programs security researchers at Cisco s Talos unit said Talos researcher Craig Williams said it was a sophisticated attack because it penetrated an established and trusted supplier in a manner similar to June s NotPetya attack on companies that downloaded infected Ukrainian accounting software There is nothing a user could have noticed Williams said noting that the optimization software had a proper digital certificate which means that other computers automatically trust the program In a blog post Piriform confirmed that two programs released in August were compromised It advised users of CCleaner v5 33 6162 and CCleaner Cloud v1 07 3191 to download new versions A spokeswoman said that 2 27 million users had downloaded the August version of CCleaner while only 5 000 users had installed the compromised version of CCleaner Cloud Piriform said that Avast its new parent company had uncovered the attacks on Sept 12 A new uncompromised version of CCleaner was released the same day and a clean version of CCleaner Cloud was released on Sept 15 it said Only the cloud version could be updated automatically to remove the bad code The nature of the attack code suggests that the hacker won access to a machine used to create CCleaner Williams said CCleaner does not update automatically so those who installed the problematic version will need to delete it and install a fresh version he said He also recommended running an antivirus scan Williams said that Talos detected the issue at an early stage when the hackers appeared to be collecting information from infected machines rather than forcing them to install new programs Piriform said in a news release that it had worked with U S law enforcement to shut down a server located in the United States to which traffic was set to be directed It said the server was closed down on Sept 15 before any known harm was done Avast said little about the breach posting nothing on its Twitter account in the 12 hours after the announcement and displaying nothing on its main web page Piriform s news release and technical blog post did not mention Cisco or its partner Morphisec instead crediting Avast with discovering the still unexplained compromise
After the controlling web addresses were seized Cisco saw 200 000 attempts to connect to them |
VZ | FCC Abandons Plans For BDS Reforms Delays Voting Process | The surprising victory of Republican nominee Donald Trump as the next U S president is starting to show its impact on telecom policy parameters On Nov 16 the U S telecom regulator Federal Communications Commission FCC abandoned its plans to reform Business Data Services BDS market by dropping the voting procedure on proposals made by its Chairman Tom Wheeler
The FCC took this sudden decision after a group of Republican lawmakers asked Wheeler to refrain from acting on controversial issues like BDS during his final months in office Notably Donald Trump will take over charges of White House on Jan 20 2017
The BDS market where telecom and cable MSOs multi service operators provide a host of different network related services to business entities of different sizes have been a lucrative source of revenues in the recent years for the service providers More significantly these service providers have been generating handsome revenues from the small and medium businesses by often charging steep price At present BDS is a 45 billion market opportunity per annum
The FCC has proposed rules to regulate pricing in the market citing low competition According to LightReading the FCC s proposal include 1 no more tariffs 2 No more classifying telecom providers as either dominant or non dominant carriers 3 Implement a new Competitive Market Test to determine where competition exists 4 imposition of technology neutral regulations 5 Institute price caps on access to legacy TDM networks in non competitive markets 6 in non competitive markets wholesale prices should be set in relation to retail prices for any given service
However such proposals have been criticized by the industry players and several industry organizations Their argument being that the new BDS regulations will cause more harm than good discouraging further network investments costing jobs and reducing economic output Incumbent service providers like AT T Inc NYSE T CenturyLink Inc NYSE T and Frontier Communications Corp NYSE T together with several cable MSOs have vehemently opposed this proposal
Surprisingly Verizon Communications Inc NYSE VZ and Incompas the trade group serving competitive telecom networks were supporters of the FCC move Verizon currently carry a Zacks Rank 3 Hold You can see
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VZ | Dycom Industries DY Beats On Q1 Earnings Revenues Miss | After two successive earnings beats Dycom Industries Inc NYSE DY followed up with another beat in its first quarter fiscal 2017 results The specialty contracting services provider reported adjusted earnings per share of 1 67 in the quarter surpassing the Zacks Consensus Estimate of 1 65 The bottom line figure was even more remarkable on a year over year basis surging a striking 34 7 compared with the year ago tally of 1 24 per share Robust top line growth drove earnings while diligent operational initiatives undertaken by the company supported the bottom line Inside the HeadlinesDycom s fiscal first quarter contract revenues continued their strong momentum and came in at 799 2 million up 21 2 year over year However the top line missed the Zacks Consensus Estimate of 801 million by a whisker Contract revenues grew 18 on an organic basis Acquisitions too added 56 6 million in revenues significantly supplementing the revenue stream Extensive deployment of 1 Gigabyte wireline networks by major customers and increasing rollout of fiber by cable operators in small and medium businesses boosted top line growth Solid performance across the majority of business lines including engineering design and aerial and underground construction services and healthy inorganic growth also augmented revenues The company reported non GAAP adjusted earnings before interest taxes depreciation and amortization EBITDA of 129 2 million for the quarter compared with 105 7 million recorded a year ago LiquidityDycom exited the quarter with cash and cash equivalents of 21 7 million compared with 33 8 million as of Jul 30 2016 The company s long term debt was 774 5 million as at quarter end compared with 706 2 million as of Jul 30 2016 Outlook for Goodman NetworksLast quarter Dycom had acquired certain telecom related assets of Goodman Networks Incorporated for about 107 5 million in cash It had purchased certain assets and associated liabilities in Goodman s current wireline and wireless network deployment businesses Initially Dycom projected the buyout to generate about 150 165 million in revenues over the next 12 months by providing services like wireless network construction in Texas Georgia Southern California and other markets This specialty contracting services provider also projected the EBITDA earnings before interest taxes depreciation and amortization of the acquired business as a percentage of revenue to be roughly in line with its own ratio in fiscal 2018 However concurrent with the earnings release Dycom announced that the recently acquired operations of Goodman Networks are now forecast to generate revenues of about 10 million per quarter which is much lower than the initial expectations Consequently Dycom has reduced its contract backlog by about 211 million GuidanceDycom issued guidance for second quarter fiscal 2017 wherein adjusted earnings per share are projected in the range of 61 73 cents on revenues within a range of 640 670 million The Zacks Consensus Estimate for first quarter fiscal 2017 earnings is currently pegged at 71 cents per share within the company s guided range DYCOM INDS Price Consensus and EPS Surprise Our TakeWe believe that Dycom s top line has benefited significantly from favorable industry trends over the past few quarters which are driving client spending Deployment of fiber to the home and fiber to the node technologies by major telecom operators to enable video offerings and 1 gigabit high speed connections have been opening up considerable growth opportunities for the company Going forward we expect that the significant investments in wireline networks cable capacity projects and the ongoing Connect America Fund II project will help Dycom maintain its growth momentum Also the company s diligent capital expenditure strategy has supplemented organic revenue improvement over the past 12 months We also believe that investments made in assets will enhance operating efficiency accelerating the delivery of backlogs which in turn bodes well for long term growth This apart Dycom has a highly concentrated client base among which the biggest ones i e AT T Inc NYSE T Comcast Corporation NASDAQ CMCSA Verizon Communications Inc NYSE VZ and Centurylink contributed about 56 of revenues in fiscal 2015 However uncertainties in the macroeconomic environment especially fluctuations in oil prices and unfavorable weather conditions remain headwinds for the company As a matter of fact pronounced seasonal impact from businesses acquired by the company in 2015 has hampered earnings significantly in the past and could affect operations in the future as well Dycom presently carries a Zacks Rank 4 Sell You can see The Best Place to Start Your Stock Search Today you are invited to download the full list of 220 Zacks Rank 1 Strong Buy stocks absolutely free of charge Since 1988 Zacks Rank 1 stocks have nearly tripled the market with average gains of 26 per year Plus you can access the list of portfolio killing Zacks Rank 5 Strong Sells and other private research |
VZ | Yahoo s Woes Multiply As Ireland s DPC Expedites Hack Probe | Ireland s Data Protection Commissioner DPC is reportedly conducting an accelerated examination of the massive 2014 hacking incident at Yahoo Inc NASDAQ YHOO that caused theft of user information from 500 million accounts Yahoo publicly admitted the incident in Sep 2016 and has faced U S politicians ire for being so late in admitting the breach The Data Protection Commissioner also stated that it awaits information from Yahoo on allegations that it assisted U S authorities to scan some email accounts The examination is aimed at ascertaining if Yahoo s support to the email surveillance was in violation of European law Reuters had reported last month that Yahoo developed a custom software program to scan all of its users incoming emails for particular information demanded by the FBI The news had fueled widespread privacy concern The spokeswoman of DPC MB Donnelly confirmed the change from preliminary enquiry to active investigation in case of the hacking incident As far as the email surveillance incident is concerned she stated that DPC is continuing with preliminary assessment of the case YAHOO INC Price Will the Verizon Deal be Affected It would be interesting to see how all these affect Verizon s NYSE VZ decision to acquire Yahoo s core assets for 4 8 billion Earlier Verizon s general counsel Craig Silliman confirmed in a statement that the company has received preliminary briefings but it s expecting a demonstration of the full impact on Yahoo s part Till that time Verizon will keep its final decision on hold He stated Verizon is absolutely evaluating the breach and will make determinations about whether and how to move forward with the deal based on our evaluation of the materiality Silliman however declined to comment on renegotiation of the purchase price At its third quarter 2016 earnings conference call Verizon Executive Vice President and Chief Financial Officer Francis J Shammo stated that the evaluation is still on and more information has been sought from Yahoo We believe that Verizon on being aware of the fact that Yahoo is troubled to a great extent will find it extremely difficult to look for another buyer and is most likely to try and extract a better price Zacks Rank Other Key Picks Currently Yahoo has a Zacks Rank 2 Buy Other stocks worth considering in the broader technology sector include NVIDIA Corporation NASDAQ NVDA and Kimball Electronics Inc NASDAQ KE each sporting a Zacks Rank 1 Strong Buy You can see For the current year the consensus estimate for NVIDIA has increased 33 3 in the past 30 days Estimates for Kimball Electronics have gone up by 8 1 over the same time frame The Best Place to Start Your Stock Search Today you are invited to download the full list of 220 Zacks Rank 1 Strong Buy stocks absolutely free of charge Since 1988 Zacks Rank 1 stocks have nearly tripled the market with average gains of 26 per year Plus you can access the list of portfolio killing Zacks Rank 5 Strong Sells and other private research |
VZ | Why The Cuban Dream Maybe Over For US Telecom Operators | President Obama s decision to normalize U S diplomatic and economic relations with Cuba which had been considerably strained since 1961 is again under threat
Recently President elect Donald Trump threatened to terminate the Obama administration s efforts to normalize US Cuba relations According to CNN Trump tweeted If Cuba is unwilling to make a better deal for the Cuban people the Cuban American people and the U S as a whole I will terminate the deal
Notably Cuba is currently going through a political transition as its long time dictator and former President Fidel Castro passed away on Nov 25 His brother and present President Raul Castro is taking over complete control of Cuba Likewise the White House is witnessing a change of regime from Obama to Trump
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 enables the U S telecom operators to export telecom equipment and services to Cuba Under these regulations the U S telecom carriers were also permitted to establish the necessary infrastructure in Cuba to offer various telecom services including the Internet
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 customers in the U S who are of Cuban descent Furthermore starting from Oct 18 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 carries a Zacks Rank 3 Hold You can see
Price Performance of Four Major Wireless Operators
Year to date the Zacks categorized U S wireless industry has registered an impressive growth of 17 02 However the stock prices of two relatively large telecom operators namely Verizon and AT T have underperformed the industry mark While AT T has registered a growth of 14 73 Verizon witnessed just 10 26 growth in the same time period
On the other hand two smaller players T Mobile US and Sprint have outperformed the industry Shares of T Mobile US surged 41 59 while Sprint witnessed an astonishing 120 99 growth in the same time frame
Nevertheless both T Mobile US and Sprint are emphasizing on their core wireless network offering several price concessions to entice customers away from their large peers In contrast Verizon and AT T are gradually diversifying their business model into Internet TV digital mobile platform and highly lucrative mobile advertising segments We believe this is the primary reason behind all four nation wireless operators currently carrying a Zacks Rank 3
Our View
We believe that the U S telecom operators may not reap any near term gain 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 telecom carriers who choose to operate in the country An opportunity to sell products and services to 11 million untapped customers is a very lucrative and enticing one
Further with the weakening of communism and the willingness to enter the economic as well as political mainstream Cuba is poised to become an attractive emerging market in the future Additionally Cuba s geographical proximity to the U S is a major positive for these telecom operators from the cost of operations standpoint
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VZ | Strike hit Verizon makes final contract proposal to unions | By Malathi Nayak Reuters Verizon Communications Inc NYSE VZ said it had presented a revised and final contract proposal to unions representing nearly 40 000 striking workers who walked off their jobs in mid April after talks over a new labor agreement hit an impasse The company on Thursday said it was now offering a wage increase of 7 5 percent over the term of a new contract up from its previous offer of a 6 5 percent raise We are putting our last best final offer on the table Verizon s Chief Administrative Officer Marc Reed said in a statement The ball is now in the unions court to do what s right for our employees Verizon s proposal comes ahead of the expiration on Saturday of healthcare coverage for striking employees Workers from network technicians to customer service representatives in Verizon s Fios Internet telephone and TV services across several U S Northeast and Mid Atlantic states including New York and Virginia walked off the job on April 13 in one of the largest U S strikes in recent years The strike was called by the Communications Workers of America CWA and the International Brotherhood of Electrical Workers Sticking points in contract negotiations include job relocations pensions healthcare coverage and the offshoring of call center jobs In its proposal Verizon said it will continue to match retirement saving contributions and offer pensions with increases over three years It also laid out job security and buyout terms and some healthcare costs it wants employees to bear beyond the company s coverage At meetings on Thursday executives refused to back off of callous proposals that would hurt working families and destroy middle class jobs the CWA said in a statement The company also failed to budge on the issues facing Verizon Wireless workers The union said it was considering how to move forward Verizon the No 1 U S wireless company has shifted its focus in recent years to new efforts in mobile video and advertising while scaling back its Fios TV and Internet service It has stopped expanding its old landline phone network and the wireline unit generated about 29 percent of company revenue in 2015 down about 60 percent since 2000 The company has said it has trained thousands of non union employees over the past year to ensure no service disruption If the strike continues for an extended period it could impact 2016 earnings Chief Financial Officer Fran Shammo has said More than a thousand union workers have returned to work since the strike began and more are expected to follow the company said in a statement
The strike has had minimal impact to its operations it said |
VZ | FCC advances reform of U S business data market | By David Shepardson WASHINGTON Reuters The U S Federal Communications Commission on Thursday voted to advance reforms of the 40 billion market for business data services known as special access lines and to bar some contractual practices by providers The FCC voted 3 2 to approve an order that will bar some existing contract requirements by special access providers for businesses using high capacity data and voice connections and to advance a proposed regulation reforming the market that would create a new technology neutral framework that would extend regulations in non competitive markets Many businesses rely on the little special access lines to transmit large amounts of data quickly for instance connecting banks to ATM machines or gasoline pump credit card readers The lines are used by offices retailers banks manufacturers schools hospitals and universities to move large amounts of data Mobile networks also rely on the lines for the backhaul of mobile traffic But there is little competition in many markets said FCC chairman Tom Wheeler Where competition does not exist then government has a job to do protecting consumers and competition he said Thursday Wheeler has noted competitive carriers reach less than 45 percent of locations where there is demand One issue is many businesses signed long term contracts that impose high penalties for opting out of using the services FCC officials said making it difficult to switch to another service Companies must withdraw unjust and unreasonable conditions within 60 days of the order being published the FCC said Thursday The proposed reforms of the overall market will face public comment before a final vote by the FCC Republicans questioned why the FCC should intervene on behalf of sophisticated businesses like banks that signed contracts for data services The services are profitable for large carriers such as Verizon Communications Inc NYSE VZ and AT T Inc NYSE T Smaller carriers such as Sprint Corp have argued the special access market is uncompetitive Sprint praised the FCC Thursday for taking a significant step in reforming the long broken market for business data services The FCC said special access lines are worth about 25 billion of the 40 billion annual market for business data services The proposal also considers whether other types of business data services like cable or Internet services could face further regulatory scrutiny in non competitive markets
The National Cable and Telecommunications Association criticized the proposal It said that while cable companies entering the market has resulted in improved services and lower prices for businesses it was disappointing that the FCC was considering imposing onerous new rate regulation on these competitive services |
VZ | Exclusive Yahoo s bidder shortlist points to cash deal sources | By Greg Roumeliotis and Liana B Baker Reuters Yahoo NASDAQ YHOO Inc has shortlisted close to 10 bidders in the auction for its core Internet assets including Verizon Communications Inc NYSE VZ with most offers involving cash rather than a combination with another company according to people familiar with the matter The shortlist comprises mainly large companies and big private equity firms including TPG Capital LP and excludes many small companies that proposed some kind of combination such as privately held Yellow Pages owner YP LLC the people said this week The sources declined to divulge the full list Some bidders that did not make the shortlist because their first round offers were not specific enough are still being kept close to the process by Yahoo s advisers the people said One of those bidders is Liberty Media Corp NASDAQ LMCA Chairman John Malone who has proposed a tax efficient merger with one of the companies he controls the people said The sources asked not to be identified because details of the sale process were confidential Yahoo Verizon TPG and YP declined to comment Liberty Media did not respond to a request for comment A sale of Yahoo s Internet assets for cash followed by a divestment of its 35 5 percent stake in Yahoo Japan would leave the company owning just its 15 percent stake in Chinese e commerce company Alibaba NYSE BABA Group Holding Ltd In December Yahoo scrapped plans to spin off its Alibaba stake after investors fretted over whether that transaction could have been carried out on a tax free basis Yahoo has been laying off employees and seeking to cut costs as its core Internet business shrinks Earlier this week Yahoo said that activist hedge fund Starboard Chief Executive Jeffrey Smith and three independent directors associated with him would join its board immediately A truce with Smith its most vocal activist investor helps Yahoo clear the way for the auction of its core businesses analysts said Yahoo s four new directors were on a slate that Starboard proposed last month to oust Yahoo s entire board Analysts see Verizon which bought AOL last year for 4 4 billion as the candidate likely to prevail in the auction
Verizon is being advised by three investment banks Guggenheim Partners LLC LionTree LLC and Allen Company as reported by Reuters |
VZ | Sprint s loss widens vows to cut 2 billion in costs this year | By Malathi Nayak and Sai Sachin R Reuters Sprint Corp on Tuesday reported a wider quarterly loss and added fewer subscribers than expected but vowed to cut more than 2 billion in costs in the current fiscal year to stop the red ink Sprint shares which had fallen about 4 percent so far this year jumped as much as 5 7 percent on Tuesday before easing up 1 percent at 3 53 Net operating revenue fell to 8 07 billion in the fourth quarter from 8 28 billion a year earlier Sprint s net loss widened to 554 million or 14 cents per share from 224 million or 6 cents per share and fell short of the average analyst estimate of a net loss of 12 cents per share according to Thomson Reuters I B E S Sprint has been offering customers half off discounts to switch from rival networks There s been a lot of talk about whether we re being irresponsible bringing in customers at 50 percent off Chief Executive Officer Marcelo Claure said on an earnings conference call That s absolutely not the case Sprint aims to reduce costs by over 2 billion by slashing jobs and expenses by the end of fiscal year 2016 in an attempt to reverse years of customer defections and losses The No 4 U S wireless carrier said it shed 1 3 billion in costs in fiscal year 2015 Claure said Sprint was committed in the fiscal year to cutting costs in such areas as sales and marketing customer care and information technology No massive layoffs were expected in the year executives said on a media call Sprint cut at least 2 500 jobs in January it said The company has been making network upgrades to compete with bigger rivals Verizon Communications Inc NYSE VZ AT T Inc NYSE T and T Mobile US Inc Overland Park Kansas based Sprint added 56 000 monthly subscribers in the fourth quarter ended March 31 trailing the average analyst estimate of 220 300 customers according to research firm FactSet StreetAccount Sprint majority owned by Japan s SoftBank Group Corp forecast operating income for the year ending March 2017 to be 1 billion to 1 5 billion versus the 310 million it posted for the year ended March 31 The company also stuck to its forecast of about 9 5 billion to 10 billion in adjusted earnings before interest taxes depreciation and amortization for the year Sprint has signed deals in recent months for the sale and leaseback of certain network assets with SoftBank to raise cash Last week it announced a 2 billion bridge financing arrangement with Mizuho Bank
The company s total current liabilities stood at 11 96 billion while total current assets were 6 83 billion as of March 31 |
VZ | Striking union workers protest at Verizon shareholder meeting | By Malathi Nayak NEW YORK Reuters Dozens of Verizon Communications Inc N VZ landline workers on strike since mid April after contract talks hit an impasse marched on the company s annual shareholder meeting in Albuquerque New Mexico on Thursday The unions said about 15 protesters blocked traffic after they laid down atop a large banner on the street The Albuquerque Police Department said no arrests were made but 15 people were cited More than 250 protesters including workers and supporters demonstrated at the meeting where the agenda included an election for 13 directors and a vote on executive compensation The unions for the strikers said they also planned hundreds of protests across the United States against Verizon the No 1 U S wireless service provider Nearly 40 000 network technicians and customer service representatives of the company s Fios Internet telephone and television services units walked off the job on April 13 The action was called by the Communications Workers of America and the International Brotherhood of Electrical Workers The strike is in its fourth week Sticking points include offshore call center jobs job relocations and healthcare coverage The striking workers have about 1 3 billion in Verizon stock holdings according to the unions They voted on proposals including one brought by the Association of BellTel Retirees that seeks the company to require shareholder approval for any executive severance agreement offering a payout of more than triple the base salary Verizon shareholders rejected this proposal on Thursday according to Don Dunn a union representative and Long Island New York based Fios field technician who attended the meeting Verizon said last week it had presented an updated and final offer to the unions including a wage increase of 7 5 percent The company which has been scaling back its Fios and legacy landline business wants workers to shoulder more healthcare costs and be open to relocating to new job locations The union rejected the new proposal and the parties remain far apart CWA is the one of the biggest unions out there and if we lose this fight all other unions they are going to lose There s a lot at stake here said Shon Scents a Verizon cable splicer at the protest in New York s Financial District on Thursday The work stoppage at Verizon stretched across several U S East Coast states including New York Massachusetts and Virginia Verizon has said it has brought in thousands of temporary workers to avoid service disruptions
The workers have been without a contract since August |
VZ | Verizon striking unions set talks after meeting with U S official | Reuters Verizon Communications Inc N VZ and representatives from two striking unions will return to the negotiating table on Tuesday after a weekend meeting with U S Secretary of Labor Thomas Perez About 40 000 network technicians and customer service representatives in the company s Fios Internet telephone and television services unit walked off the job in mid April in the largest U S strike in recent years The two sides have remained far apart on issues related to healthcare coverage pensions and the off shoring of call center jobs Verizon Chief Executive Officer Lowell McAdam and union officials from the Communications Workers of America and the International Brotherhood of Electrical Workers met with Perez on Sunday at his request Verizon and the unions declined to comment The best way to resolve this labor dispute is at the bargaining table and I am heartened by the parties mutual commitment to get back to immediate discussions and work toward a new contract Perez said in a statement issued Sunday night
This story corrects paragraph 3 to add dropped letter s in sides |
CSCO | Digital Turbine APPS To Post Q1 Earnings What s In Store | Digital Turbine NASDAQ APPS is set to release first quarter fiscal 2020 results on Aug 5 The company s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters the average positive surprise being 87 5 In the last reported quarter earnings of 3 cents per share beat the Zacks Consensus Estimate by a penny The company had reported loss of a cent in the year ago quarter Revenues grew 29 7 year over year to 27 2 million and were better than the consensus mark For first quarter fiscal 2020 Digital Turbine expects revenues between 28 million and 28 5 million The Zacks Consensus Estimate for revenues is currently pegged at 28 4 million indicating 28 4 growth from the figure reported in the year ago quarter Moreover the Zacks Consensus Estimate for earnings stands at 2 cents unchanged over the past 30 days and suggests growth of 300 from the figure reported in the year ago quarter Digital Turbine Inc Price and EPS Surprise
Let s see how things are shaping up prior to this announcement Factors to ConsiderDigital Turbine s mobile device management platform Ignite has been gaining significant traction In fourth quarter fiscal 2019 Ignite was installed in roughly 29 million devices As of Jun 3 2019 approximately 260 million devices had Ignite installed which is a major driver for the company s advertising revenues in the to be reported quarter Notably in the fourth quarter U S revenue per device RPD increased 27 year over year reflecting strong demand for the Digital Turbine platform among advertisers Moreover improving global RPD indicates solid demand for the company s ad solutions Additionally strong contributions from products like SingleTap Folders App Wizard and Notifications are expected to drive the top line During the fiscal first quarter Digital Turbine inked partnerships with AppsFlyer Branch Kochava and Singular to boost SingleTap s capabilities These are well known attribution and analytics companies covering roughly 85 of the global mobile applications market Notably SingleTap streamlines the app installation process by enabling app delivery from any mobile ad in just one tap The solution is enabled in more than 150 million Android devices and its click to install conversion rate is impressive This has helped in increasing its demand among advertisers and application providers Further an expanding partner base which includes Twitter Pinterest NYSE PINS Pandora and others must have enhanced penetration in the second quarter Additionally an expanding International partner base that now includes Samsung KS 005930 is a key catalyst for Digital Turbine The company is already live on Samsung s S10 5G device on Verizon s network Moreover the addition of new markets in Europe and Latin America is expected to drive the top line despite sluggish growth and a saturating smartphone market What Our Model SaysAccording to the Zacks model a company with a Zacks Rank 1 Strong Buy 2 Buy or 3 Hold along with a positive has a good chance of beating estimates The Sell rated stocks Zacks Rank 4 or 5 are best avoided Digital Turbine has a Zacks Rank 3 and an Earnings ESP of 0 00 You can uncover the best stocks to buy or sell before they re reported with our Stocks With Favorable CombinationHere are some companies which per our model have the right combination of elements to post an earnings beat this quarter CACI International NYSE CACI has an Earnings ESP of 4 02 and a Zacks Rank 2 You can see Cisco Systems NASDAQ CSCO has an Earnings ESP of 1 53 and a Zacks Rank 2 Vonage Holdings NYSE VG has an Earnings ESP of 14 29 and a Zacks Rank 3 Breakout Biotech Stocks with Triple Digit Profit PotentialThe biotech sector is projected to surge beyond 775 billion by 2024 as scientists develop treatments for thousands of diseases They re also finding ways to edit the human genome to literally erase our vulnerability to these diseases Zacks has just released Century of Biology 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance Our recent biotech recommendations have produced gains of 98 119 and 164 in as little as 1 month The stocks in this report could perform even better |
CSCO | Factors To Consider Ahead Of Autohome s ATHM Q2 Earnings | Autohome Inc NYSE ATHM is scheduled to report second quarter 2019 results on Aug 7 The company surpassed the Zacks Consensus Estimate for earnings in the trailing four quarters with an average positive earnings surprise of 9 3 Q1 at a GlanceAutohome had reported first quarter 2019 non GAAP earnings of 87 cents per share which beat the Zacks Consensus Estimate by 8 8 Revenues of 240 2 million surpassed the Zacks Consensus Estimate of 237 million The figure was also higher than the year ago quarter s revenues of approximately 205 million What to Expect in Q2Autohome projects second quarter revenues in the range of 339 million to 343 5 million The Zacks Consensus Estimate for revenues stands at 331 54 million suggesting growth of 17 4 from the year ago reported figure The Zacks Consensus Estimate for second quarter earnings declined 3 7 over the past 30 days to 1 03 per share Nonetheless the figure indicates an improvement of 8 4 from the year ago reported figure Let s see how things are shaping up prior to this announcement Factors Likely to Influence Q2 ResultsAutohome s second quarter results are expected to benefit from strength in its diversified product portfolio and solid media business amid weakness in automobile market and lingering macroeconomic woes Robust volume growth in traffic and initiatives to expand lead generation business are likely to drive the to be reported quarter s top line Moreover incremental adoption of recently launched Carso an intelligent search engine is expected to enable Autohome in bolstering traffic growth Further growing demand for used cars and vehicles sales leads in the marketplace and continued cost cutting measures from the company s end is expected to positively impact the to be reported quarter results Autohome Inc Price and EPS Surprise Additionally collaboration with OEMs and the dealers is anticipated to positively impact data product penetration which is yet another positive For instance partnership with TTP Advent is expected to aid Autohome in expanding its auto financing business The company s partnership synergies and expansion is likely to favor second quarter results Moreover the number of average DAUs that utilized Autohome mobile website and app came in at 30 2 million an increase of 14 year over year in the last reported quarter The momentum is expected to continue in the quarter under review on the back of efforts to rev up data products and auto financing business However decline in OEM spending on online automobile advertising owing to weakness in the Chinese market and automobile industry remains a risk and is likely to negatively impact the quarter under review Further the company is facing intense competition from Bitauto Holdings NYSE BITA which is reportedly gaining market share considering auto transactions growth despite overall weakness in auto sales In a bid to maintain competitive position Autohome is banking on product innovation and introduction of data products for used vehicles The company s continuous investment in data and technology is likely to weigh on in the to be reported quarter s margins What Our Model SaysAccording to the Zacks model a company with a Zacks Rank 1 Strong Buy 2 Buy or 3 Hold has a good chance of beating estimates if it also has a positive Sell rated stocks Zacks Rank 4 or 5 are best avoided Autohome has an Earnings ESP of 0 97 and a Zacks Rank 4 Sell You can uncover the best stocks to buy or sell before they re reported with our Stocks that Warrant a LookHere are some stocks you may consider as our proven model shows that these have the right combination of elements to post an earnings beat this quarter Cisco Systems Inc NASDAQ CSCO has an Earnings ESP of 1 53 and a Zacks Rank 2 The company is slated to report fourth quarter fiscal 2019 results on Aug 14 You can see CACI International Inc NYSE CACI has an Earnings ESP of 4 02 and a Zacks Rank 2 The company is set to report fourth quarter fiscal 2019 results on Aug 14 Today s Best Stocks from ZacksWould you like to see the updated picks from our best market beating strategies From 2017 through 2018 while the S P 500 gained 15 8 five of our screens returned 38 0 61 3 61 6 68 1 and 98 3 This outperformance has not just been a recent phenomenon From 2000 2018 while the S P averaged 4 8 per year our top strategies averaged up to 56 2 per year |
CSCO | What s In Store For Upland Software s UPLD Q2 Earnings | Upland Software NASDAQ UPLD is set to report second quarter 2019 results on Aug 7 The company s earnings beat the Zacks Consensus Estimate in the trailing four quarters delivering average positive surprise of 7 8 In the last reported quarter Upland s adjusted earnings of 53 cents per share beat the Zacks Consensus Estimate by a penny The figure jumped 43 2 year over year Revenues of 48 5 million surged 53 4 on a year over year basis Growth was driven by more than 60 increase in recurring revenues Q2 Guidance RevisedFollowing the Kapost acquisition on May 28 Upland revised its previous guidance for second quarter 2019 The company forecasts revenues between 50 5 million and 52 5 million up from 49 9 51 9 million including subscription and support revenues of 47 2 48 8 million up from 46 7 48 3 million At mid point of the guidance range recurring revenue growth is anticipated to be 45 year over year up previous guidance of 43 growth at mid point Adjusted EBITDA is expected between 17 9 million and 18 9 million up from previous guidance range of 17 7 18 7 million At mid point adjusted EBITDA margin is almost 36 Upland Software Inc Price and EPS Surprise Notably the Kapost acquisition adds approximately 15 million in annualized revenues and is immediately accretive to Upland s adjusted EBITDA per share The Zacks Consensus Estimate for revenues is currently pegged at 51 4 million which indicates growth of almost 43 from the figure reported in the year ago quarter Further the consensus mark for second quarter earnings has been steady at 49 cents over the past 30 days Let s see how things are shaping up prior to this announcement Key Factors to ConsiderUpland s top line in the second quarter is expected to be driven by portfolio strength and improved product capabilities that are helping it win new customers Notably in the last reported quarter Upland signed 161 new customers and expanded relationships with 231 existing customers The company has a broad clientele of more than 9 000 of which 1 300 are major customers across various industries each accounting for roughly 106 000 in annual recurring revenues Moreover acquisitions like Kapost PostUp Rant Rave and Adestra among others play a key role in driving Upland s growth Acquisitions are helping the company rapidly penetrate different markets including Customer Experience Management Professional Services Automation Document Automation Project Financial Management Enterprise Sales Enablement and Knowledge Management Upland estimates the total addressable market for its solutions to be 25 billion which presents significant growth opportunity The company is also benefiting from the strong adoption of the UplandOne operating platform Moreover improving cross selling opportunity is expected to drive the top line in the to be reported quarter However higher acquisition expenses are expected to dent profitability What Our Model SaysAccording to the Zacks model a company with a Zacks Rank 1 Strong Buy 2 Buy or 3 Hold has a good chance of beating estimates if it also has a positive Sell rated stocks Zacks Rank 4 or 5 are best avoided Upland Software has a Zacks Rank 3 and an Earnings ESP of 0 00 You can uncover the best stocks to buy or sell before they re reported with our Stocks to ConsiderHere are some companies which per our model have the right combination of elements to post an earnings beat in the to be reported quarter Callaway Golf NYSE ELY has an Earnings ESP of 6 40 and a Zacks Rank 1 You can see CACI International NYSE CACI has an Earnings ESP of 4 02 and a Zacks Rank 2 Cisco Systems NASDAQ CSCO has an Earnings ESP of 1 53 and a Zacks Rank 2 Today s Best Stocks from ZacksWould you like to see the updated picks from our best market beating strategies From 2017 through 2018 while the S P 500 gained 15 8 five of our screens returned 38 0 61 3 61 6 68 1 and 98 3 This outperformance has not just been a recent phenomenon From 2000 2018 while the S P averaged 4 8 per year our top strategies averaged up to 56 2 per year |
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