Zacks Analyst Blog Highlights: Wal-Mart, Digital River, Inc., Microsoft Corporation, Vodafone and NTT DoCoMo - Press Releases
For Immediate Release
Chicago, IL – February 2, 2010 – 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: Wal-Mart (WMT), Digital River, Inc. (DRIV), Microsoft Corporation (MSFT), Vodafone (VOD) and NTT DoCoMo (DCM).
Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=5513
Here are highlights from Monday’s Analyst Blog:
Income, Spending & Savings Rise
Lower Personal Consumption Expenditures (PCE) means that people are holding on to their wallets and not going out to shop at Wal-Mart (WMT) or if they are, they are not spending as much. Part of the reason was that their ability to do so out of current income was crimped by less money coming in. However, part of it is a deliberate decision on the part of consumers to try to repair their damaged balance sheets by holding on to more of what they earn.
While I would like to see faster growth in both Income and spending, over the long term it is imperative that income rise more than spending, which is exactly what happened in December. The fact that both were lower than in November is a negative, but the upward revisions to November were a good thing to see (although I wish the income number was up more than the spending number in November). All in all, I would count this as a moderately positive report.
Digital River Beats, Profits Fall
Digital River, Inc. (DRIV) reported revenues of $104.9 million in the fourth quarter of 2009, up 26% from a year ago exceeding management’s guidance of $94 million – $98 million. The growth in revenues was driven by series of one time promotions of Microsoft Windows 7 in the fourth quarter. This resulted in Microsoft Corporation (MSFT) generating approximately 11.8% of total revenues in 2009.
Net income came in at $15.3 million or 40 cents per share beating the Zacks Consensus Estimate of 33 cents. This compared to a net income of $19.8 million or 48 cents in the fourth quarter of 2008.
Management expects to further expand its relationship with Microsoft and is looking forward to a successful Office 2010 launch, scheduled for the first half of 2010.
Indian 3G Auction Postponed Again
The impending 3G spectrum auction, which was originally scheduled to take place in late 2008/early 2009, was initially delayed due to disputes between the Indian government and the Department of Telecommunications (DoT) regarding the spectrum pricing structure. To expedite the spectrum auction process, DoT increased the floor price for bidding for 3G auction to INR35 billion (US$716 million) per operator from the initial price of INR20.2 billion (US$415 million). Moreover, the floor bidding price for WiMax (broadband wireless access) spectrum auction has been set at INR17.5 billion (US$360 million).
DoT announced in August 2009 that it will issue four 3G and three WiMax spectrum slots nationwide. DoT currently has the required spectrum to auction two 3G slots with the Ministry of Defence holding the necessary airwaves to auction the remaining two. The 3G and WiMax auctions are expected to fetch at least INR 250 billion (US$5.4 billion). The Indian government was keen to hold the auction in the current fiscal year (ending March 31, 2010) to bridge the high fiscal deficit, which now seems a distant possibility.
The government has already alloted 3G licenses to the state-owned mobile operators Bharat Sanchar Nigam Ltd (“BSNL") and Mahanagar Telephone Nigam Ltd (“MTNL") who have launched their 3G services in selected markets in early 2009. Private operators are currently offering 2G services to their subscribers.
The leading participants in the auction will be the top private telecom firms -- Bharti Airtel, Reliance Communications, Idea Cellular, Tata Teleservices and Vodafone Essar, the Indian subsidiary of Vodafone (VOD). The operators desparetely need to roll out data-intensive services as they experience contracting revenue and margins on voice services. The limited number of available license slots for auction is expected to increase the bidding price.
In addition to the Indian operators, the government is allowing international carriers to participate in the auctions, a move that will intensify competition in the Indian wireless market, which is the second largest in the world (after China).
Foreign operators such as Telenor SA, NTT DoCoMo (DCM) and Emirates Telecommunications are expected to bid for the 3G licenses.
Want more from Zacks Equity Research? Subscribe to the free Profit from the Pros newsletter: http://at.zacks.com/?id=5515.
About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today: http://at.zacks.com/?id=5517
About Zacks
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leonard Zacks. As a PhD in mathematics Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at http://at.zacks.com/?id=5518.
Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Follow us on Twitter: http://twitter.com/zacksresearch
Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts
Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.
Contact:
Mark Vickery
Web Content Editor
312-265-9380
Visit: www.zacks.com
The preceding article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
