Zacks Analyst Blog Highlights: News Corporation, Time Warner, Dish Network Corporation, Cablevision Systems Corporation and Qualcomm - Press Releases

For Immediate Release

Chicago, IL – November 5, 2010 – Zacks.com Analyst Blog features: News Corporation (NWSA), Time Warner Inc. (TWX), Dish Network Corporation (DISH), Cablevision Systems Corporation (CVC) and Qualcomm Inc. (QCOM ).

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Here are highlights from Thursday's Analyst Blog:

News Corp. Beats Estimate

News Corporation (NWSA), a diversified media conglomerate, recently posted better-than-expected first-quarter 2011 results on the heels of improved advertising performance at its Television, Cable Networks and Newspaper segments.

Both Top and Bottom Lines Outpaced

Rupert Murdoch controlled News Corporation's quarterly earnings of 27 cents a share, beat the Zacks Consensus Estimate of 24 cents, and rose 22.7% from 22 cents earned in the year-ago quarter.

On a reported basis, including one-time items, quarterly earnings came in at 30 cents a share, witnessing a sharp rise of 36.4% from the prior-year quarter. Following this, a positive sentiment may be palpable among the analysts covering the stock, and we may witness a rise in the Zacks Consensus Estimates in the coming days.

Rival media conglomerate Time Warner Inc. (TWX) posted better-than-expected third-quarter 2010 results on the heels of increase in advertising and subscription revenues, and lifted its outlook for full-year 2010. The quarterly earnings of 62 cents per share, which rose 17% from the prior-year quarter, comfortably beat the Zacks Consensus Estimate of 53 cents.

News Corporation hinted that total revenue rose 3.2% year-on-year to $7,426 million driven by the strength across Cable Network Programming (up 16.6%), Television (up 11.2%), and Publishing (up 3.3%), partially offset by Filmed Entertainment (down 1.2%) and Direct Broadcast Satellite Television (down 7.7%). The Other segment revenue fell 25.5%. Total revenue also comfortably surpassed the Zacks Consensus Revenue Estimate of $7,359 million.

Total segment operating income jumped 8.1% to $1,148 million during the quarter. News Corporation continues to expect fiscal 2011 segment operating income to increase in the low double-digit percentage range.

Beyond the Headline

In a separate story, News Corporation indicated that it intends to bid for the remaining 61% stake in U.K.-based pay TV operator, British Sky Broadcasting (“BSkyB”). The company currently holds a 39% of interest in BSkyB. After advertising revenue was hit hard by the recent economic downturn, News Corporation was striving to add diverse revenue streams to hedge against economic cycles.

The company has taken a leap towards an online subscription-based model for general news content. News International, a subsidiary of News Corporation, began charging readers for online content for The Times of London and Sunday Times of London effective June 2010.

Moreover, the retransmission and affiliate fees from cable and satellite partners for the right to retransmit broadcast programming have been another source of revenue, which the company thinks would scale new heights in the next couple of years. News Corporation recently resolved its fee spat with Dish Network Corporation (DISH) and Cablevision Systems Corporation (CVC).

Currently, we have a Neutral rating on News Corporation. Moreover, the Zacks # Rank, which translates into a short-term Hold rating, correlates with our long-term recommendation.

Qualcomm Outperforms, Outlook Bright

Supported by a significant surge in demand for the high-end 3G smartphones, Qualcomm Inc. (QCOM ) reported better-than-expected financial results of its fourth quarter of fiscal 2010. Management is now more confident about fiscal 2011 and as a result, has given a financial outlook that also beats the current Zacks Consensus Estimates. In synergy with these positive developments, in the after-market trade on NASDAQ, stock price of Qualcomm was up $3.28 (7.18%) to $48.97.

Revenue

Quarterly total revenue of $2,952 million was up 9.7% year over year and beat the Zacks Consensus Estimate of $2,859 million. By segments, Qualcomm CDMA Technologies business accounted for $1,860 million of revenue in the fourth quarter, up 9% over the prior-year quarter and up 10% sequentially. Quarterly EBT margin was 28%. Qualcomm Technology Licensing generated $921 million, up 10% year over year and up 9% sequentially. Quarterly EBT margin was 82%. Qualcomm Wireless & Internet segment generated $171 million, up 17% year over year and 6% sequentially. Quarterly EBT margin was a negative 1%.

EPS

On a GAAP basis, quarterly net income was $865 million or 53 cents per share compared to a net income of $803 million or an income of 48 cents per share in the year-ago quarter. EPS of 53 cents was also above the Zacks Consensus Estimate of 51 cents.

First Quarter of Fiscal 2011 Financial Guidance

First quarter revenue will be within the range of $3.05 billion - $3.35 billion. Its mid-point of $3.20 billion is well above the current Zacks Consensus Estimate of $3 billion. Pro Forma EPS will be within the range of 63 cents - 67 cents, excluding 7 cents per share of stock-based compensation expenditures. Its mid-point of 65 cents is significantly above the current Zacks Consensus Estimate of 63 cents. Qualcomm is expected to ship 115 million – 119 million MSM chipsets during the first quarter of fiscal 2011.

Neutral Recommendation Reaffirmed

We continue to believe the robust growth of 3G wireless networks and a very strong balance sheet will serve as long-term catalysts for Qualcomm. Smartphones are quickly becoming the next-generation choice, taking over the market share from basic mobile handsets. This is turn will help Qualcomm to sustain its revenue growth. Currently, Qualcomm is a Zacks #3 Rank (Hold) stock.

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