Tag Archives: VZ

Trade Restrictions Continue to Haunt Telecom Stocks

Over the last five trading days, telecom stocks flattered to deceive as the initial upturn was replaced by a sustained downturn on concerns over the implications of the fresh restrictions issued by the U.S. government against Chinese telecom companies.

Trade Restrictions Continue to Haunt Telecom StocksSource: Shutterstock

Last week, Treasury Secretary Steven Mnuchin led a delegation of U.S. officials in China to defuse the tensions between the two warring countries while Liu He, the top economic adviser of President Xi Jinping, headed the Chinese side in the talks. The Chinese officials made solemn representations to the visiting delegates to convey the plight of ZTE that invited most of the wrath of the Trump administration.

ZTE also formally appealed to the U.S. Commerce Department’s Bureau of Industry and Security to suspend the seven-year ban on its products that threatened its survival and crippled operations.

Regarding company-specific news, earnings of some telecom companies along with improved product launches for superior connectivity and high-quality content to subscribers at lower cost of ownership, and acquisitions topped the charts. The industry’s earnings in general appear to be on strong footing backed by healthy growth dynamics thanks to the existing secular trends in cloud computing, artificial intelligence and Big Data.

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 Trade Restrictions Continue to Haunt Telecom Stocks: Motorola Solutions Inc (MSI)

Motorola Solutions Inc (NYSE:MSI) reported strong first-quarter 2018 results on the back of healthy growth across all geographic regions. Non-GAAP earnings for the reported quarter were $1.10 per share compared with 71 cents in the year-ago quarter, primarily driven by top-line growth. The bottom line exceeded the Zacks Consensus Estimate of 86 cents.

Net sales in the reported quarter came in at $1,468 million compared with $1,281 million in the year-ago quarter, driven by organic growth of 10% and healthy performance across all regions. Quarterly sales exceeded the Zacks Consensus Estimate of $1,371 million.

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 Trade Restrictions Continue to Haunt Telecom Stocks: Sprint Corp (S)

Sprint Corp (NYSE:S) reported healthy fourth-quarter fiscal 2017 results, wherein both the top line and the bottom line surpassed the Zacks Consensus Estimate. The U.S. national wireless carrier delivered record financial results with highest ever net income and operating income in fiscal 2017.

Net income for the reported quarter improved to $69 million from a net loss of $283 million in the year-ago quarter, supported by lower operating expenses and income tax benefit. Earnings per share for the reported quarter came in at 2 cents against a loss of 7 cents in the previous-year quarter. The bottom line surpassed the Zacks Consensus Estimate of a loss of 6 cents.

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 Trade Restrictions Continue to Haunt Telecom Stocks: Windstream Holdings Inc (WIN)

Windstream Holdings Inc (NASDAQ:WIN) reported tepid first-quarter 2018 financial results, wherein both the top line and the bottom line missed the respective Zacks Consensus Estimate. However, both the figures improved on a year-over-year basis.

For the reported quarter, the company incurred a net loss of $121.4 million or a loss of 65 cents per share compared with a net loss of $111.3 million or a loss of 89 cents per share in the year-ago quarter. The bottom line was wider than the Zacks Consensus Estimate of a loss of 59 cents. Total revenues increased 6% year over year to $1,454.3 million but missed the Zacks Consensus Estimate of $1,464 million.

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 Trade Restrictions Continue to Haunt Telecom Stocks: Nokia Oyj (NOK)

Nokia Oyj (NYSE:NOK) inked a deal to acquire SpaceTime Insight, a California-based IoT startup, for an undisclosed amount. The deal is aimed at expanding Nokia’s IoT portfolio and IoT analytics capabilities while expediting the development of new IoT applications for key vertical markets.

The buyout supports Nokia’s software strategy and leverages SpaceTime’s sales expertise and proven track record in IoT application development, machine learning and data science to augment the efficacy of the Nokia Software IoT product unit.

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 Trade Restrictions Continue to Haunt Telecom Stocks: Qualcomm, Inc. (QCOM)

According to a Bloomberg report, Qualcomm, Inc. (NASDAQ:QCOM) is mulling to exit the market for production of high-end processors for data-center servers in order to focus on its core businesses. While the endeavor would help the company save millions of dollars through reduced R&D expenses, it would also increase its dependence on slow-growing market for mobile-phone chips.

Moreover, aggressive competition in the mobile phone chipset market is likely to hurt profits in the future. Although the global smartphone market is expected to maintain its momentum in the next four to five years, a major part of this growth is likely to come from low-cost emerging markets, which is likely to exert pressure on margins.

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Price Performance

The following table shows the price movement of some the major telecom stocks over the past week and during the last six months.

In the last five trading days, Harris Corporation (NYSE:HRS) was the major gainer with its share price rising 5.6% while Verizon Communications Inc. (NYSE:VZ) was the major decliner, with its stock losing 3%.

Trade Restrictions Continue to Haunt Telecom Stocks

Over the last six months, Motorola was the best performer with its stock appreciating 13.6% while Qualcomm was the major decliner with its shares falling 25.1%.

Over the last six months, the Zacks Telecommunications Services industry underperformed the benchmark S&P 500 index with an average decline of 4.1% against a gain of 4.3% for the latter.

Trade Restrictions Continue to Haunt Telecom Stocks

What’s Next in the Telecom Space?

In addition to continued product launches and deployment of 5G technologies, all eyes will remain glued to the latest developments in the trade war and how the U.S. administration responds to the ZTE plea.

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3 Dividend Stocks Perfect for Retirees

Retirement signifies a monumental shift in the way you invest. Not only are you trying to throw off some cash to supplement your income, you also want your principal to grow somewhat so you aren’t eating into your nest egg too quickly. One great way to walk this fine line is to invest in top-quality dividend stocks that are going to pay you income to own them and still have some room to grow over time.

With this in mind, we asked three of our Fool.com contributors to highlight a stock they consider a great dividend stock for someone in retirement. Here’s why they picked Starbucks (NASDAQ:SBUX), Verizon Communications (NYSE:VZ), and Brookfield Renewable Partners (NYSE:BEP).

Person taking notes on charts and spreadsheets.

Image source: Getty Images.

Still in growth mode after 47 years

Brian Feroldi (Starbucks): Starbucks opened its first location in 1971, so you’d be forgiven for assuming that this business has turned into a slow-moving giant. After all, the company currently operates more than 27,000 stores globally. Surely the growth story is coming to an end soon, right?

I firmly believe that the answer to that question is “no.” Not only is Starbucks still in growth mode — sales and non-GAAP earnings grew by 14% and 18%, respectively,last quarter — but there are plenty of reasons to believe that it can continue to expand from here.

So what are those reasons? Here’s a few that excite me:

International expansion: Starbucks is on fire in huge countries like China, and there is still plenty of room for store growth in many international markets. Ultrapremium coffee: The company’s newroastery storesare being rolled out across the world and promise to help Starbucks appeal to ultrapremium coffee drinkers. Consumer packaged goods: Have you noticed that you can now buy Starbucks products in grocery and convenience stores? This allows the company to monetize customers who love the brand but don’t visit the stores regularly (like me). Food, tea, and cold drinks: Starbucks is working to broaden its portfolio of products in an effort to appeal to non-coffee drinkers.

When combined with share buybacks, I’m confident that these factors will allow Starbucks to grow its profits by double digits for years to come. Adding in a market-beating dividend yield only sweetens the deal.

The top wireless carrier in America

Leo Sun (Verizon Communications): Verizon is the top wireless carrier in the U.S. It also has a large wireline business and an expanding media and internet presence, thanks to its acquisitions of AOL in 2015 and Yahoo!’s internet business in 2017. Those businesses give it a wide moat against rivals like AT&T.

Verizon pays a forward dividend yield of 4.6%, which is more than double the S&P 500’s current yield of 2%. It’s raised that dividend annually for over a decade, and spent 31% of its earnings and 91% of its free cash flow on those payments over the past 12 months.

Verizon’s growth might seem glacial, since analysts expect its revenue to rise just 3% this year and 1% next year. Verizon’s earnings are expected to grow 22% this year, thanks to tax benefits, before increasing just 2% next year.

However, Verizon still consistently adds customers, with an addition of 220,000 postpaid smartphone subscriptions last quarter. It also posted wireless gains in connected devices, like wearables, which offset declines in tablet and prepaid phones. Looking ahead, the expansion of Oath– the merged businesses of AOL and Yahoo!’s internet properties — could also yield lucrative bundling opportunities in streaming media and internet ads.

Verizon is a slow-growth stock, but it trades at just 10 times forward earnings. That low valuation, coupled with its high yield and the company’s wide moat, makes it an ideal stock for retirees.

SBUX Chart

SBUX data by YCharts.

Income you can rely on for years

Tyler Crowe (Brookfield Renewable Partners):A great income stock for someone in retirement will supply two essential things: 1. The ability to provide a reliable payout at a decent yield for years into the future, and 2. the potential for modest growth to combat the scourge of inflation over time. There aren’t many businesses out there that can provide a combination of these things better than Brookfield Renewable Partners.

Brookfield Renewable Partners owns and operates 16,000 megawatts of power-generating facilities worldwide including hydro dams, utility-scale solar installations, and wind farms. It ensures that it generates stable revenue and cash flow by locking in customers with long-term power purchasing contracts. This kind of business plan isn’t unique to Brookfield, as almost all other power-generating companies claim the same thing. What sets Brookfield apart from others is its approach to capital allocation, growth, and its payout.

I know it sounds agonizingly simple, but Brookfield’s patient and conservative approach has been a key component to its success since it went public in 2000. The company has maintained an investment-grade credit rating, targeted modest payout growth, and has been willing to invest in places that others wouldn’t. That’s how it was able to gobble up lots of hydroelectric dams in Brazil on the cheap and acquire the solar power assets of the now-defunct SunEdison. By adding assets when the price is right, Brookfield has been able to grow its total return by 16% annually since its IPO.

Investing in high-yield businesses means you can count on the management team to be good stewards of shareholder capital. Over the years, Brookfield Renewable Partners has proven to be just that. If you are in retirement and looking to add some income stocks for the long haul, Brookfield Renewable Partners is certainly one to consider.

3 Dividend Stocks Perfect for Retirees

Retirement signifies a monumental shift in the way you invest. Not only are you trying to throw off some cash to supplement your income, you also want your principal to grow somewhat so you aren’t eating into your nest egg too quickly. One great way to walk this fine line is to invest in top-quality dividend stocks that are going to pay you income to own them and still have some room to grow over time.

With this in mind, we asked three of our Fool.com contributors to highlight a stock they consider a great dividend stock for someone in retirement. Here’s why they picked Starbucks (NASDAQ:SBUX), Verizon Communications (NYSE:VZ), and Brookfield Renewable Partners (NYSE:BEP).

Person taking notes on charts and spreadsheets.

Image source: Getty Images.

Still in growth mode after 47 years

Brian Feroldi (Starbucks): Starbucks opened its first location in 1971, so you’d be forgiven for assuming that this business has turned into a slow-moving giant. After all, the company currently operates more than 27,000 stores globally. Surely the growth story is coming to an end soon, right?

I firmly believe that the answer to that question is “no.” Not only is Starbucks still in growth mode — sales and non-GAAP earnings grew by 14% and 18%, respectively,last quarter — but there are plenty of reasons to believe that it can continue to expand from here.

So what are those reasons? Here’s a few that excite me:

International expansion: Starbucks is on fire in huge countries like China, and there is still plenty of room for store growth in many international markets. Ultrapremium coffee: The company’s newroastery storesare being rolled out across the world and promise to help Starbucks appeal to ultrapremium coffee drinkers. Consumer packaged goods: Have you noticed that you can now buy Starbucks products in grocery and convenience stores? This allows the company to monetize customers who love the brand but don’t visit the stores regularly (like me). Food, tea, and cold drinks: Starbucks is working to broaden its portfolio of products in an effort to appeal to non-coffee drinkers.

When combined with share buybacks, I’m confident that these factors will allow Starbucks to grow its profits by double digits for years to come. Adding in a market-beating dividend yield only sweetens the deal.

The top wireless carrier in America

Leo Sun (Verizon Communications): Verizon is the top wireless carrier in the U.S. It also has a large wireline business and an expanding media and internet presence, thanks to its acquisitions of AOL in 2015 and Yahoo!’s internet business in 2017. Those businesses give it a wide moat against rivals like AT&T.

Verizon pays a forward dividend yield of 4.6%, which is more than double the S&P 500’s current yield of 2%. It’s raised that dividend annually for over a decade, and spent 31% of its earnings and 91% of its free cash flow on those payments over the past 12 months.

Verizon’s growth might seem glacial, since analysts expect its revenue to rise just 3% this year and 1% next year. Verizon’s earnings are expected to grow 22% this year, thanks to tax benefits, before increasing just 2% next year.

However, Verizon still consistently adds customers, with an addition of 220,000 postpaid smartphone subscriptions last quarter. It also posted wireless gains in connected devices, like wearables, which offset declines in tablet and prepaid phones. Looking ahead, the expansion of Oath– the merged businesses of AOL and Yahoo!’s internet properties — could also yield lucrative bundling opportunities in streaming media and internet ads.

Verizon is a slow-growth stock, but it trades at just 10 times forward earnings. That low valuation, coupled with its high yield and the company’s wide moat, makes it an ideal stock for retirees.

SBUX Chart

SBUX data by YCharts.

Income you can rely on for years

Tyler Crowe (Brookfield Renewable Partners):A great income stock for someone in retirement will supply two essential things: 1. The ability to provide a reliable payout at a decent yield for years into the future, and 2. the potential for modest growth to combat the scourge of inflation over time. There aren’t many businesses out there that can provide a combination of these things better than Brookfield Renewable Partners.

Brookfield Renewable Partners owns and operates 16,000 megawatts of power-generating facilities worldwide including hydro dams, utility-scale solar installations, and wind farms. It ensures that it generates stable revenue and cash flow by locking in customers with long-term power purchasing contracts. This kind of business plan isn’t unique to Brookfield, as almost all other power-generating companies claim the same thing. What sets Brookfield apart from others is its approach to capital allocation, growth, and its payout.

I know it sounds agonizingly simple, but Brookfield’s patient and conservative approach has been a key component to its success since it went public in 2000. The company has maintained an investment-grade credit rating, targeted modest payout growth, and has been willing to invest in places that others wouldn’t. That’s how it was able to gobble up lots of hydroelectric dams in Brazil on the cheap and acquire the solar power assets of the now-defunct SunEdison. By adding assets when the price is right, Brookfield has been able to grow its total return by 16% annually since its IPO.

Investing in high-yield businesses means you can count on the management team to be good stewards of shareholder capital. Over the years, Brookfield Renewable Partners has proven to be just that. If you are in retirement and looking to add some income stocks for the long haul, Brookfield Renewable Partners is certainly one to consider.

3 Dividend Stocks Perfect for Retirees

Retirement signifies a monumental shift in the way you invest. Not only are you trying to throw off some cash to supplement your income, you also want your principal to grow somewhat so you aren’t eating into your nest egg too quickly. One great way to walk this fine line is to invest in top-quality dividend stocks that are going to pay you income to own them and still have some room to grow over time.

With this in mind, we asked three of our Fool.com contributors to highlight a stock they consider a great dividend stock for someone in retirement. Here’s why they picked Starbucks (NASDAQ:SBUX), Verizon Communications (NYSE:VZ), and Brookfield Renewable Partners (NYSE:BEP).

Person taking notes on charts and spreadsheets.

Image source: Getty Images.

Still in growth mode after 47 years

Brian Feroldi (Starbucks): Starbucks opened its first location in 1971, so you’d be forgiven for assuming that this business has turned into a slow-moving giant. After all, the company currently operates more than 27,000 stores globally. Surely the growth story is coming to an end soon, right?

I firmly believe that the answer to that question is “no.” Not only is Starbucks still in growth mode — sales and non-GAAP earnings grew by 14% and 18%, respectively,last quarter — but there are plenty of reasons to believe that it can continue to expand from here.

So what are those reasons? Here’s a few that excite me:

International expansion: Starbucks is on fire in huge countries like China, and there is still plenty of room for store growth in many international markets. Ultrapremium coffee: The company’s newroastery storesare being rolled out across the world and promise to help Starbucks appeal to ultrapremium coffee drinkers. Consumer packaged goods: Have you noticed that you can now buy Starbucks products in grocery and convenience stores? This allows the company to monetize customers who love the brand but don’t visit the stores regularly (like me). Food, tea, and cold drinks: Starbucks is working to broaden its portfolio of products in an effort to appeal to non-coffee drinkers.

When combined with share buybacks, I’m confident that these factors will allow Starbucks to grow its profits by double digits for years to come. Adding in a market-beating dividend yield only sweetens the deal.

The top wireless carrier in America

Leo Sun (Verizon Communications): Verizon is the top wireless carrier in the U.S. It also has a large wireline business and an expanding media and internet presence, thanks to its acquisitions of AOL in 2015 and Yahoo!’s internet business in 2017. Those businesses give it a wide moat against rivals like AT&T.

Verizon pays a forward dividend yield of 4.6%, which is more than double the S&P 500’s current yield of 2%. It’s raised that dividend annually for over a decade, and spent 31% of its earnings and 91% of its free cash flow on those payments over the past 12 months.

Verizon’s growth might seem glacial, since analysts expect its revenue to rise just 3% this year and 1% next year. Verizon’s earnings are expected to grow 22% this year, thanks to tax benefits, before increasing just 2% next year.

However, Verizon still consistently adds customers, with an addition of 220,000 postpaid smartphone subscriptions last quarter. It also posted wireless gains in connected devices, like wearables, which offset declines in tablet and prepaid phones. Looking ahead, the expansion of Oath– the merged businesses of AOL and Yahoo!’s internet properties — could also yield lucrative bundling opportunities in streaming media and internet ads.

Verizon is a slow-growth stock, but it trades at just 10 times forward earnings. That low valuation, coupled with its high yield and the company’s wide moat, makes it an ideal stock for retirees.

SBUX Chart

SBUX data by YCharts.

Income you can rely on for years

Tyler Crowe (Brookfield Renewable Partners):A great income stock for someone in retirement will supply two essential things: 1. The ability to provide a reliable payout at a decent yield for years into the future, and 2. the potential for modest growth to combat the scourge of inflation over time. There aren’t many businesses out there that can provide a combination of these things better than Brookfield Renewable Partners.

Brookfield Renewable Partners owns and operates 16,000 megawatts of power-generating facilities worldwide including hydro dams, utility-scale solar installations, and wind farms. It ensures that it generates stable revenue and cash flow by locking in customers with long-term power purchasing contracts. This kind of business plan isn’t unique to Brookfield, as almost all other power-generating companies claim the same thing. What sets Brookfield apart from others is its approach to capital allocation, growth, and its payout.

I know it sounds agonizingly simple, but Brookfield’s patient and conservative approach has been a key component to its success since it went public in 2000. The company has maintained an investment-grade credit rating, targeted modest payout growth, and has been willing to invest in places that others wouldn’t. That’s how it was able to gobble up lots of hydroelectric dams in Brazil on the cheap and acquire the solar power assets of the now-defunct SunEdison. By adding assets when the price is right, Brookfield has been able to grow its total return by 16% annually since its IPO.

Investing in high-yield businesses means you can count on the management team to be good stewards of shareholder capital. Over the years, Brookfield Renewable Partners has proven to be just that. If you are in retirement and looking to add some income stocks for the long haul, Brookfield Renewable Partners is certainly one to consider.

Radcom: Telecom Vendors Say 5G Deployments Poised To Accelerate

If Ive learned one thing as a telecom investor, it is the only certainty is the future is uncertain. In particular, when improved certainty arrives around a common technology path forward in this case, 5G which runs on top of Network Functions Virtualization (NFV) and Software-defined Networking (SDN) the other salient uncertainty surrounds the length of the sales cycle in the telecom market. Such is the plight of investing in the telecom sector.

In my view, one way to generate alpha comes when an uncertain future becomes abundantly clear. But it is difficult to stay convicted during a long period of uncertainty where share prices are mired in a range, meanwhile numerous data points suggest significant progress. One must bear the psychological strife of uncertainty until the way forward presents itself. Thats one way to generate excess (or subpar) returns over a long time horizon.

Finally, it appears as if telecom investors are sitting in front of a large, dynamic opportunity as the 5G investment supercycle begins to accelerate in the quarters ahead. To aim for maximum benefit, I prefer the pure-play NFV software players like RADCOM (NASDAQ:RDCM) which stand to asymmetrically benefit because they dont have declining legacy revenue streams from hardware-based 4G products to obfuscate their software growth opportunity. Recall that RADCOM already has AT&T (NYSE:T) and another US top-tier operator (presumably Verizon (NYSE:VZ)) as anchor customers, with a Tier-1 galaxy operator and others finally exiting RADCOMs sales pipeline and entering the commercial deployment phase.

Investors should take note of the 5G opportunity. T-Mobile (NASDAQ:TMUS) and Sprint (NYSE:S) very clearly outlined the importance of 5G related to their proposed merger and competitive attack on AT&T (NYSE:T) and Verizon (NYSE:VZ). The combined entity intends to spend $40 billion on 5G technologies and platforms as the number 3 player, so one can imagine the level of investment from larger CSPs over the next several years.

When coupled with recent earnings commentary from large telecom vendors such as Nokia (NYSE:NOK) and Ericsson (NASDAQ:ERIC) regarding the 5G investment cycle, it appears a supercycle could be underway.

Nokia CEO Rajeev Suri commented on the Q1 earnings call:

Let me start with market development and you will have seen that we shared an improved view of market conditions in our earnings report. We also said we expect our Networks business to outperform the market. The primary driver for the market improvement is that 5G momentum is building fast. And Nokia is remarkably well positioned as that happens. We now expect meaningful commercial rollouts in the United States to start in the second half of this year followed by large scale commercial deployments in this and other geographies in 2019.

There are three things driving this trend. The first is the ever growing consumer demand for capacity. I have talked to a number of our customers who are straining to meet traffic growth and need the significant capacity increase and lower cost per bit that comes with 5G. The second driver we see for 5G momentum is competition. There is no doubt that operators are looking at their competitors and worrying about potentially facing someone else’s powerful 5G marketing and network performance.

They do not want to be exposed and know they will need to move to address this competitive threat. I would also note that there is competition between countries on 5G with many pushing to be first. The United States and China to be sure, Japan and South Korea but also within the Nordics and the Middle East. The third 5G momentum driver is industrial use cases. While the opportunity here will take longer to develop, we certainly believe the potential is there for enterprises to achieve a step-change in productivity with the use of next generation networks. The interest is real, as just one example. I had dinner the other night with a half dozen CEOs of industrial companies all of whom saw the promise of improving efficiency through the use of dedicated 5G network slices that provide end-to-end security and ultra-low latency.

From a geographical perspective, things really start with North America. Even if we had a soft first quarter in that part of the world, we see excellent momentum building for the second half of this year both for the market and for Nokia. This is not based on expectation alone. It is also based on deals that we are winning and orders that we have already received. As I mentioned earlier, we expect commercial 5G rollouts in North America later this year along with an overall focus on delivering improved mobile broadband network performance in the region. There is of course a risk that operator consolidation could put a slight dampener on our optimistic view, but we would not expect that to fully derail the trends we are seeing.

Then China, our current view is that commercial deployments of 5G will start around the middle of 2019 although we know that if China decides to accelerate, things can change very fast. Current trade tensions add some uncertainty to our business in China. But at this point we expect that prudence will prevail and given the overall market dynamics in China, we do not expect European companies such as Nokia to see an impact within the country.

The Nordics, Japan, South Korea, parts of the Middle East, all can be expected to move fast with 5G as well. In short and recognizing that there are some skeptics we see 5G coming fast and coming big. As this happens, we expect an atypical seasonal trend with softness in the first half of this year offset by a very dynamic second half. And as I said earlier, we are confident that we can outperform a strengthening market and meet our full year guidance.

This is a perfect set up for investors: owning high-quality growth companies ahead of a very dynamic investment cycle that can accelerate revenue and earnings growth. Note too that RADCOM is a technology partner to Nokia.

To put that in perspective for RADCOM, the company guided to $43 to $47 million in 2018 revenue, which I believe is conservative and based only on known revenue as of February 2018. To that end, I believe there is a path to $15-$20 million per year, per customer for its flagship virtual probe, service assurance product MaveriQ as CSPs migrate networks to the cloud. AT&T contributed $24.5 million to RADCOMs revenue in 2017, and I expect for that level of spend to continue as AT&T acquires technology licenses for 5G and RADCOMs new virtual network packet broker.

Given RADCOM already has two anchor customers in North America, and a potential 3rd and 4th on the way in Europe, I think there is a clear path to a $100 million revenue run-rate in the next 18 months or so. Using some simple modeling based on 75% gross margins and $40 million in annual operating costs, Im assuming RADCOM can generate $35 million in pre-tax earnings, or about $2.25 EPS (assuming a 15% tax rate and 13.5 million shares out).

Taking into account RADCOMs apparent pole position in NFV, and the fact incumbents continue to struggle as CSPs rely less on proprietary hardware, in my view, it is becoming more probable that RADCOM will be a strategic acquisition target and I think it could reasonably garner a 40x multiple on the earnings leverage apparent at $100 million in revenue, or a path to $90 per share.

Clearly, many things need to go right, but I still like the risk/reward inherent in RDCM shares at the current $18 price coincident with a dynamic 5G investment cycle on the cusp of unfolding. In other words, the future is uncertain, but I think there is enough upside to compensate investors for bearing that uncertainty. And the moment of truth is getting closer each day.

Disclosure: I am/we are long RDCM.

I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

SeekingAlpha

Boeing, Caterpillar, Microsoft and More Dow Earnings Coming This Week

Although markets were somewhat shaky for the first big week of the new earnings reporting season, they ultimately closed up for the second week in a row. This is only a small step, but it has proven that solid fundamentals can stabilize this market.

Ten of the indexs 30 components are expected to share their results this week. The Dow Jones industrial index has been subject to incredible volatility since January, but as we mentioned before, this earnings season could stabilize the index.

24/7 Wall St. has put together a preview of the Dow Jones industrial average companies scheduled to report their quarterly results this week. Here, we have included the consensus earnings estimates from Thomson Reuters, as well as the stock price and trading history.

Be advised that the earnings and revenue estimates may change ahead of the formal reports, and some companies may change reporting dates as well.

3M Co. (NYSE: MMM) is set to report its most recent quarterly results on Tuesday. Analysts are looking for $5.57 in earnings per share (EPS) and $8.69 billion in revenue. Shares closed the week at $217.75, with a consensus price target of $237.92 and a 52-week trading range of $190.59 to $259.77.

International Business Machines Corp. (NYSE: IBM) is expected to report its first-quarter results on Tuesday. The analysts consensus forecast is EPS of $2.52 on $8.26 billion in revenue. Shares were changing hands at $156.71 as last week came to a close. The consensus price target is $170.75, and the stock has a 52-week range of $139.13 to $171.69.

Caterpillar Inc. (NYSE: CAT) will share its latest quarterly earnings on Tuesday. The consensus estimates call for $2.08 in EPS and $11.98 billion in revenue. Shares ended last week at $153.25, in a 52-week range of $93.81 to $173.24. The consensus analyst target is $178.26.

Coca-Cola Co. (NYSE: KO) is scheduled to share its quarterly report on Tuesday as well. The consensus estimates are $0.46 in EPS on $7.31 billion in revenue. Shares were last seen at $43.74. The stock has a 52-week range of $42.19 to $48.62, and the consensus price target is $50.03.

On Tuesday, Verizon Communications (NYSE: VZ) is expected to report its most recent quarterly results. The consensus analyst estimates are $1.71 in EPS and revenue of $9.05 billion. Shares of Verizon were at $47.90 on Fridays close. The consensus price target is $56.08, and the 52-week range is $42.80 to $54.77.

Boeing Co. (NYSE: BA) is expected to report its first-quarter results on Wednesday. The analysts consensus forecast is EPS of $2.56 on $22.09 billion in revenue. Shares were changing hands at $338.67 as last week came to a close. The consensus price target is $387.29, and the stock has a 52-week range of $175.47 to $371.60.

Visa Inc. (NYSE: V) will share its latest quarterly earnings on Wednesday. The consensus estimates call for $1.02 in EPS and $4.8 billion in revenue. Shares ended last week at $124.20, in a 52-week range of $90.98 to $126.88. The consensus analyst target is $140.09.

24/7 Wall St.
Wall Street Analysts Bullish on Energy as Oil Surges to 3-Year Highs

Intel Corp. (NASDAQ: INTC) is scheduled to share its quarterly report on Thursday. The consensus estimates are $0.72 in EPS on $15.05 billion in revenue. Shares were last seen at $51.53. The stock has a 52-week range of $33.23 to $52.28, and the consensus price target is $54.22.

Microsoft Corp. (NASDAQ: MSFT) also is expected to report its most recent quarterly results on Thursday. The consensus analyst estimates are $0.85 in EPS and revenue of $25.77 billion. Shares of Microsoft were at $95.00 on Fridays close. The consensus price target is $105.21, and the 52-week range is $65.45 to $97.24.

On Friday, Chevron Corp. (NYSE: CVX) is scheduled to reveal its first-quarter results. The consensus estimates are $1.49 in EPS and $40.7 billion in revenue. Shares were trading at $122.31 as the week came to a close. The consensus price target is $135.88. The 52-week range is $102.55 to $133.88.

Look for Exxon Mobil Corp. (NYSE: XOM) to report its most recent quarterly results on Friday too. Analysts are looking for EPS of $1.16 and $66.78 billion in revenue. The shares were changing hands at $79.00 on Fridays close. The consensus price target is $85.98, and the 52-week range is $72.16 to $89.30.

Also see our separate previews of major pharma and biotech earnings and of the FANGs and more reporting this week.

Boeing, Caterpillar, Microsoft and More Dow Earnings Coming This Week

Although markets were somewhat shaky for the first big week of the new earnings reporting season, they ultimately closed up for the second week in a row. This is only a small step, but it has proven that solid fundamentals can stabilize this market.

Ten of the indexs 30 components are expected to share their results this week. The Dow Jones industrial index has been subject to incredible volatility since January, but as we mentioned before, this earnings season could stabilize the index.

24/7 Wall St. has put together a preview of the Dow Jones industrial average companies scheduled to report their quarterly results this week. Here, we have included the consensus earnings estimates from Thomson Reuters, as well as the stock price and trading history.

Be advised that the earnings and revenue estimates may change ahead of the formal reports, and some companies may change reporting dates as well.

3M Co. (NYSE: MMM) is set to report its most recent quarterly results on Tuesday. Analysts are looking for $5.57 in earnings per share (EPS) and $8.69 billion in revenue. Shares closed the week at $217.75, with a consensus price target of $237.92 and a 52-week trading range of $190.59 to $259.77.

International Business Machines Corp. (NYSE: IBM) is expected to report its first-quarter results on Tuesday. The analysts consensus forecast is EPS of $2.52 on $8.26 billion in revenue. Shares were changing hands at $156.71 as last week came to a close. The consensus price target is $170.75, and the stock has a 52-week range of $139.13 to $171.69.

Caterpillar Inc. (NYSE: CAT) will share its latest quarterly earnings on Tuesday. The consensus estimates call for $2.08 in EPS and $11.98 billion in revenue. Shares ended last week at $153.25, in a 52-week range of $93.81 to $173.24. The consensus analyst target is $178.26.

Coca-Cola Co. (NYSE: KO) is scheduled to share its quarterly report on Tuesday as well. The consensus estimates are $0.46 in EPS on $7.31 billion in revenue. Shares were last seen at $43.74. The stock has a 52-week range of $42.19 to $48.62, and the consensus price target is $50.03.

On Tuesday, Verizon Communications (NYSE: VZ) is expected to report its most recent quarterly results. The consensus analyst estimates are $1.71 in EPS and revenue of $9.05 billion. Shares of Verizon were at $47.90 on Fridays close. The consensus price target is $56.08, and the 52-week range is $42.80 to $54.77.

Boeing Co. (NYSE: BA) is expected to report its first-quarter results on Wednesday. The analysts consensus forecast is EPS of $2.56 on $22.09 billion in revenue. Shares were changing hands at $338.67 as last week came to a close. The consensus price target is $387.29, and the stock has a 52-week range of $175.47 to $371.60.

Visa Inc. (NYSE: V) will share its latest quarterly earnings on Wednesday. The consensus estimates call for $1.02 in EPS and $4.8 billion in revenue. Shares ended last week at $124.20, in a 52-week range of $90.98 to $126.88. The consensus analyst target is $140.09.

24/7 Wall St.
Wall Street Analysts Bullish on Energy as Oil Surges to 3-Year Highs

Intel Corp. (NASDAQ: INTC) is scheduled to share its quarterly report on Thursday. The consensus estimates are $0.72 in EPS on $15.05 billion in revenue. Shares were last seen at $51.53. The stock has a 52-week range of $33.23 to $52.28, and the consensus price target is $54.22.

Microsoft Corp. (NASDAQ: MSFT) also is expected to report its most recent quarterly results on Thursday. The consensus analyst estimates are $0.85 in EPS and revenue of $25.77 billion. Shares of Microsoft were at $95.00 on Fridays close. The consensus price target is $105.21, and the 52-week range is $65.45 to $97.24.

On Friday, Chevron Corp. (NYSE: CVX) is scheduled to reveal its first-quarter results. The consensus estimates are $1.49 in EPS and $40.7 billion in revenue. Shares were trading at $122.31 as the week came to a close. The consensus price target is $135.88. The 52-week range is $102.55 to $133.88.

Look for Exxon Mobil Corp. (NYSE: XOM) to report its most recent quarterly results on Friday too. Analysts are looking for EPS of $1.16 and $66.78 billion in revenue. The shares were changing hands at $79.00 on Fridays close. The consensus price target is $85.98, and the 52-week range is $72.16 to $89.30.

Also see our separate previews of major pharma and biotech earnings and of the FANGs and more reporting this week.

5 Best Managed Healthcare Stocks To Invest In 2016

Financial analyst: It’s time to cut up Yahoo! Embattled CEO Marissa Mayer believes that a leaner, more focused Yahoo is the solution to its growth problems.

Yahoo announced a massive, $4.4 billion loss last quarter and said it will lay off 15% of its workforce as part of a plan to return the company to “modest to accelerating growth” next year and in 2018. The layoffs will reduce Yahoo’s headcount by about 1,600 employees to around 9,000 staff.

The new plan, announced Tuesday afternoon, will focus on Yahoo’s core strengths: Its products (Search, Mail and Tumblr) and its media brands (News, Sports, Finance and Lifestyle). The company will also streamline its advertising platforms, close five global offices and shutter businesses that aren’t growing, including games, smart TV and scripted TV shows.

5 Best Managed Healthcare Stocks To Invest In 2016: DIRECTV(DTV)

DIRECTV provides digital television entertainment in the United States and Latin America. The company provides direct-to-home (DTH) digital television services, as well as multi-channel video programming distribution services in the United States. It offers various channels of digital-quality video entertainment and CD-quality audio programming directly to subscribers’ homes or businesses, as well as video-on-demand services; and approximately 160 national high-definition television channels and 4 3D channels. The company also provides premium professional and collegiate sports programming, such as the NFL SUNDAY TICKET package, which allows subscribers to view the NFL games. In addition, it offers DTH digital television services in Latin America and the Caribbean, including Puerto Rico. The company provides its local and international programming under the DIRECTV and SKY brand names. As of December 31, 2010, it served approximately 19.2 million subscribers in the United States; and 8.9 million subscribers in Latin America. The company was founded in 1990 and is based in El Segundo, California.

Advisors’ Opinion:

  • [By Christopher Freeburn]

    Service disruptions on DirecTV’s (DTV) website temporarily interfered with subscribers’ ability to stream National Football League (NFL) games online for the last two Sundays.

5 Best Managed Healthcare Stocks To Invest In 2016: Emerson Electric Company(EMR)

Emerson Electric Co. operates as a diversified manufacturing and technology company. The company engages in appliance solutions, climate technologies, industrial automation, motor technology, network power, process management, professional tools, and storage solutions businesses. Its appliance solutions business provides appliance controls, appliance motors, heating products, and white-rodgers; climate technology business provides heating, ventilation, air conditioning, and refrigeration (HVACR) solutions for residential, industrial, and commercial applications; and industrial automation business offers bearings and power transmission products, electrical power generation products, electric motors, variable speed drives and servos, electrical products, material joining solutions, fluid automation products, and wind turbine systems. The company?s motor technology business provides appliance motors, HVACR motors, DC motors, fractional horsepower motors, integral horsepower a nd larger motors, and drives; network power business provides power, precision cooling, connectivity, and embedded solutions; and process management business provides various wireless related products from self-organizing field networks to wireless asset and people tracking. Its professional tools business offers pipe working and threading equipment, pressing technology, utility locating and visual diagnostics systems, drain maintenance tools, power tools, air tools, general purpose hand tools, wet/dry vacs, job site storage equipment, truck tool boxes and equipment, and van storage equipment; and storage solutions business provides shelving and storage products for residential, commercial, and foodservice needs, as well as offers specialized carts, mobile computer workstations, and cabinet fixtures. The company was founded in 1890 and is headquartered in St. Louis, Missouri.

Advisors’ Opinion:

  • [By Rising Dividend Investing]

    Pent Up Demand Pushing Cyclical Stocks

    We are coming out of a lengthy period of decreased spending in the wake of 2008-09, which has built pent up demand for automobiles, housing and capital expenditures. The average age of vehicles on the road has reached a record high of 11.4 years. Demand for new houses fell off dramatically since the Great Recession. The average U.S. home was built in 1974 and continues to age.
    As people have chosen to fix rather than replace their vehicles and homes, we’ve seen the replacement-type industries do very well. Auto Retail’s second quarter sales and earnings per share were up 14.7% and 18.6%, respectively. Home improvement retail grew sales nearly 10% with earnings up 20% from second quarter 2012.
    Adding to the pent up demand for housing is the number of young people living with their parents rather than buying or renting on their own. According to real-estate marketplace Trulia, the number of “missing hou seholds” (Americans who would currently be owning or renting a home if pre-recession economic trends had continued) was up to 2.4 million in March. More than half of these missing households are 18 to 34-year-olds.
    This pent up demand extends beyond just the immediate products being bought by consumers. Businesses have held off replacing durable goods since the recession. All of this excess demand will have to be released at some point. Eventually, these homes and vehicles will exceed their useful life and need to be replaced. To meet the need for the excess demand, companies will not be able to hold off re-investing in new plant equipment.
    We’ve seen the beginning of this demand in 2013 and believe there is more to come. The market is buying into this as well, as more growth and manufacturing oriented sectors – such as Consumer Discretionary and Industrials – have performed well over the near-term.
    Share prices for stocks in the Indu strial sectors are mo

Top 5 High Dividend Stocks To Buy Right Now: Medivation Inc.(MDVN)

Medivation, Inc., a biopharmaceutical company, focuses on the development of small molecule drugs for the treatment of castration-resistant prostate cancer, Alzheimer?s disease, and Huntington disease. The company?s product candidates under clinical development include MDV3100, which is in Phase 3 development for the treatment of castration-resistant prostate cancer; and dimebon, which is in Phase 3 clinical trial for the treatment of Alzheimer?s disease and Huntington disease. It has collaboration agreements with Pfizer Inc. to develop and commercialize dimebon; and Astellas Pharma Inc. to develop and commercialize MDV3100. The company was founded in 2003 and is based in San Francisco, California.

Advisors’ Opinion:

  • [By Ben Levisohn]

    Well, it looks like Medivation (MDVN) now has five suitors after reports that Amgen (AMGN) is joining Pfizer (PFE), Sanofi (SNY), AstraZeneca (AZN) and Novartis (NVS) in considering a bid. Maxim’s Jason Kolbert and Jason McCarthy offer their thoughts:

    Medivation reports tonight at 4:30pm…

    We expect the focus to be on the recent proposals from Sanofi (SNY $38.75- NR); Pfizer (PFE $33.40 -NR), AstraZeneca (AZN $28.26-NR) and just today, Amgen (AMGN – $154.18 – NR)…

    Medivation is returning to new highs as suitors line up to make acquisition bids. In this scenario what is the right discount rate for modeling purposes?

    We believe our model for Xtandi revenues is good, therefore we review our risk rating and determine the following: 30% = $47 15% = $76 10% = $99

    With Medivation’s board having now said No to anything less than $65 per share, it suggests to us that the stability and predictability of Xtandi’s revenues is greater than we thought, the risk is lower. Our intermediate risk rating is 15% or $76 fair value.

    Shares of Medivation rose 0.3% to $59.22 today, while Pfizer gained 0.5% to $33.56, Sanofi fell 0.5% to $39.07, AstraZeneca dropped 0.6% to $39.07, Novartis declined 0.3% to $74.12, and Amgen ticked up 0.1% to $154.25.

     

  • [By Ben Levisohn]

    Last night, Bloomberg reported that Sanofi (SNY) had made a bid for Medivation (MDVN) but had been rebuffed, while noting that other companies–perhaps Gilead Sciences (GILD), Amgen (AMGN) or AstraZeneca (AZN)?–were also on the prowl. SunTrust Robinson Humphrey’s Peter Lawson explains why Medivation might be biotech’s most wanted:

  • [By Monica Gerson]

    Medivation Inc (NASDAQ: MDVN) is said to have spurned recent takeover approach from France’s Sanofi SA (ADR) (NYSE: SNY), according to sources as reported by Bloomberg on Tuesday. Sanofi wants Medivation’s treatments for hard-to-cure cancers, the sources said. Medivation shares surged 8.46 percent to $49.60 in the after-hours trading session, while Sanofi shares fell 0.59 percent to $42.02 in after-hours trading.

5 Best Managed Healthcare Stocks To Invest In 2016: Pacific Gas & Electric Co.(PCG)

 

PG&E Corporation, through its subsidiary, Pacific Gas and Electric Company, transmits, delivers, and sells electricity and natural gas to residential, commercial, industrial, and agricultural customers primarily in northern and central California. The companys electricity distribution network consists of approximately 142,000 circuit miles of distribution lines, 58 transmission switching substations, and 603 distribution substations; and electricity transmission network comprises approximately 18,400 circuit miles of interconnected transmission lines and 91 electric transmission substations. Its natural gas system consists of approximately 42,800 miles of distribution pipelines, approximately 6,700 miles of backbone and local transmission pipelines, and various storage facilities. The company operates various electricity generation facilities, such as nuclear, hydroelectric, fossil fuel-fired, and photovoltaic. PG&E Corporat ion was founded in 1905 and is headquartered in San Francisco, California.

Advisors’ Opinion:

  • [By David Dittman]

    PG&E Corp (NYSE: PCG), Edison International (NYSE: EIX) and Sempra Energy (NYSE: SRE) are the parent entities of California’s investor-owned utilities.

5 Best Managed Healthcare Stocks To Invest In 2016: Sinovac Biotech Ltd.(SVA)

Sinovac Biotech Ltd., a biopharmaceutical company, engages in the research, development, manufacture, and commercialization of vaccines against the hepatitis A, hepatitis B, and influenza viruses in the People’s Republic of China. It offers Healive, an inactivated hepatitis A vaccine; Bilive, a combination of hepatitis A and B vaccine; Anflu, a split virus influenza vaccine; and Panflu, a vaccine against the influenza A H1N1 virus. The company’s pipeline vaccine candidates include a split viron vaccine, which completed Phase II clinical trials for the H5N1 influenza virus; and a SARS vaccine, which completed Phase I clinical trials for the SARS virus. In addition, its pipeline vaccine candidates that completed the pre-clinical trials comprise human vaccines for EV71, pneumococcal conjugate, haemophilus influenzae type b, meningitis, Japanese encephalitis, chickenpox, mumps, and rubella diseases, as well as rabies vaccine for humans and animals. The company markets and sell s its vaccine products directly to the provincial and municipal disease control and prevention centers. It has a patent license agreement with the National Institutes of Health; distribution agreements with LG Life Sciences, Ltd. and Glovax C.V.; and a pandemic influenza vaccine co-development agreement with the China Center for Disease Control and Prevention. Sinovac Biotech Ltd. was founded in 1999 and is headquartered in Beijing, the People’s Republic of China.

Advisors’ Opinion:

  • [By Monica Gerson]

    Sinovac Biotech Ltd. (NASDAQ: SVA) is expected to post its quarterly earnings.

    Supercom Ltd (NASDAQ: SPCB) is estimated to post its quarterly earnings at $0.15 per share on revenue of $9.03 million.