For Immediate Release
Chicago, IL – August 31, 2009 – 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: Dell Inc. (DELL), TiVo Inc. (TIVO), AT&T Inc. (T), Verizon Communications (VZ) and Ford Motor Company (F).
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Here are highlights from Friday’s Analyst Blog:
Dell Reports Stabilized Demand
Dell Inc.’s (DELL) revenue for the second quarter of 2010 was $12.76 billion, above the Zacks Consensus Estimate of $12.61 billion. The company reported second quarter EPS of 24 cents, exceeding the Zacks Consensus Estimate of 22 cents.
Revenue for the quarter was $12.76 billion, down 22.0% from $16.43 billion reported in the year ago quarter, and up 3.0% from $12.34 billion reported in the previous quarter. The sequential improvement in revenue can be attributed to the stabilization in the demand, while the year-over-year decline in revenue may be attributed to the decrease in unit shipments (down 14%).
TiVo Exceeds Guidance
TiVo Inc. (TIVO), the creator of the digital video recorder, recently reported second quarter fiscal year 2010 results. The company delivered improved results compared to its guidance.
TiVo reported a net loss of $2.9 million, better than its previous range of guidance of net loss between $6 million and $8 million. Management expects a net loss in the range of $8 million to $10 million in the third quarter of 2010.
TiVo reported a net loss of 3 cents a share, surpassing the Zacks Consensus Estimate of (5 cents) but fell substantially from the prior-year quarter due to lower subscriptions. The company had reported EPS of 3 cents in the second quarter of 2009.
Net revenue for the reported quarter declined 12.0% year over year to $57.4 million compared to $65.2 million reported in the prior-year quarter. Net revenue comprises Service Revenue (down 13.9% to $41.5 million), Technology Revenue (up 36.9% to $7.3 million) and Hardware Revenue (dipped 27.1% to $8.5 million).
Service and Technology revenue together declined 8.8% to $48.8 million. For the third quarter of 2010, TiVo expects Service and Technology revenue together in the range of $46 million to $48 million.
TiVo is not immune to the current challenging economic environment, as consumer electronics sales are declining. The company is facing erosion of its subscriber base. The economic downturn has made operations more difficult.
TiVo reported its eighth consecutive quarter of positive adjusted EBITDA of $5.2 million, down by more than 50% from the year-ago quarter due to the fall in Service and Technology revenue and rise in legal expenses. However, it surpassed the guidance of breakeven to $2 million. Adjusted EBITDA is expected to be in the range of ($2) million to breakeven for the third quarter of 2010.
TiVo recently filed a case against AT&T Inc. (T) and Verizon Communications (VZ) for infringement of three patents including TiVo’s ‘Time Warp’ software.
Ford Raises Production Shifts
Ford Motor Company (F) has revealed that it will add shifts at its truck plants in Michigan and Missouri on the back of increased demand for its F-150 pickup trucks and Escape SUVs. Both of the company’s manufacturing units — the Dearborn, Michigan truck plant and the Kansas City, Missouri assembly plant — will return to a three-shift operation in September and October, respectively, this year.
The increase in shifts will help gear up the production of F-150 pickup trucks by about 10,000 units. The manufacture of Ford Escape and Mercury Mariner SUVs together will increase by 2,400 units this year.
The actions are perfectly in line with the automaker’s plan to enhance production for the third and fourth quarters driven by strong sales due to the Cash for Clunkers program. The program, launched by the U.S. Government in late July, allowed consumers to trade in their old gas-guzzling cars and trucks with a mileage of 18 miles per gallon (mpg) or less for a value of up to $3,500-$4,500.
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