- Piper Jaffray says that consistent with their cautious Motorola (NYSE:MOT) outlook and recent monthly handset channel checks , they are lowering their June quarter and 2007 estimates for Motorola ahead of its earnings report.
Based on belief Motorola will focus on reducing channel inventory during Q207 combined with limited new products ramping during the quarter, the firm islowering Q207 Motorola unit estimate from 54M to 50M units. Checks on the important mid-tier segment indicate the RAZR/KRZR continue to struggle in the market versus improving WCDMA products from Sony Ericsson, Samsung, and LG and Nokia's 6300 in the mid-tier China market. Further, Motorola appears focused on improving profitability and conceding share in the low-tier. PJ believes the transition from the C-series to the W-series should positively impact operating margins, they believe this transition will take months and have more of an impact during 2H07. Further, checks indicate MOTOFONE sales remain below expectations.
2007 proforma EPS estimate goes (excluding stock-based compensation) from $0.63 to $0.51 and 2008 estimate from $1.17 to $1.07. Maintains Market Perform and lowers tgt to $17 from $18.
Notablecalls: Nothing really surprising here. I continue to stand by my MOT rec. Carl Icahn provided a positive surprise last week, announcing an increase in his stake. He also sent a letter to MOT shareholders asking to elect him to the Board of Directors.
Based on belief Motorola will focus on reducing channel inventory during Q207 combined with limited new products ramping during the quarter, the firm islowering Q207 Motorola unit estimate from 54M to 50M units. Checks on the important mid-tier segment indicate the RAZR/KRZR continue to struggle in the market versus improving WCDMA products from Sony Ericsson, Samsung, and LG and Nokia's 6300 in the mid-tier China market. Further, Motorola appears focused on improving profitability and conceding share in the low-tier. PJ believes the transition from the C-series to the W-series should positively impact operating margins, they believe this transition will take months and have more of an impact during 2H07. Further, checks indicate MOTOFONE sales remain below expectations.
2007 proforma EPS estimate goes (excluding stock-based compensation) from $0.63 to $0.51 and 2008 estimate from $1.17 to $1.07. Maintains Market Perform and lowers tgt to $17 from $18.
Notablecalls: Nothing really surprising here. I continue to stand by my MOT rec. Carl Icahn provided a positive surprise last week, announcing an increase in his stake. He also sent a letter to MOT shareholders asking to elect him to the Board of Directors.
No comments:
Post a Comment