Friday, October 24, 2014

Wireless Pricing Wars Take A Bite Out Of AT&T

 

Summary

  • AT&T results are starting to struggle as the domestic pricing war unfolds.
  • The company reported lower earnings over the prior year, and missed analyst estimates.
  • The high dividend yield is not attractive enough to overcome the domestic pricing pressures.
 In what shouldn't be a huge surprise to investors considering the pricing wars in the domestic wireless market amplified by Sprint back in August, AT&T (NYSE:T) reported Q314 earnings that missed analyst estimates. The domestic telecom giant faces a wireless market where Sprint (NYSE:S) and T-Mobile (NYSE:TMUS) are suddenly battling for subscribers via aggressive pricing plans.


       Read full article at Seeking Alpha.


     Disclosure: No positions mentioned. Please review the disclaimer for more details.

Update: NXP Semiconductors Reports Strong Q3 '14 Earnings

 

Summary

  • NXP Semi reported Q314 earnings.
  • The stock remains a buy.
  • The original investment thesis anticipated that the company could shake off the industry warnings due to involvement in strong product cycles.
 With the reporting of Q314 earnings, NXP Semiconductors (NASDAQ:NXPI) proved that the technology sector in general and the semiconductor category specifically is a matter of having the right products for the current trends. The company continues to benefit from demand for wireless base stations and mobile wallet chips. Following the massive sell-off after the Microchip (NASDAQ:MCHP) warning regarding a slowdown in the semi industry, investors were encouraged in the article "NXP Semiconductor: Perfect Storm Hits Stock" to cautiously start buying NXPI around $56. During the earnings call, the CEO provided the perfect summary of the current environment in the semi industry:


  Read the article at Seeking Alpha.


 Disclosure: No positions mentioned. Please review the disclaimer page for more details.

Update: Clean Energy Fuels Reports Q3 '14 Earnings


 

Summary

  • Clean Energy reports Q314 earnings.
  • Based on these results, the stock is still a sell.
  • Previous research anticipated that bottom line results would make no meaningful improvements over prior years.
 After the close yesterday, Clean Energy Fuels (NASDAQ:CLNE) continued the pattern of reporting a growing market compounded by large losses. The alternative fuel supplier did slightly beat analyst estimates for Q314, but the loss was significantly larger than the prior year. Also, it continued a pattern of beating estimates without the company making progress on improving operations. Note that the company beat estimates back in Q214, yet the stock is down substantially since that report.

 Read full article at Seeking Alpha.

 Disclosure: No positions mentioned. Please read the disclaimer page for more details.

Update: Weatherford Reports Strong Q3 '14 Earnings, Yet Disappoints


 Summary

  • Weatherford reports Q3'14 earnings.
  • The stock is attractive based on solid results and lower stock price.
  • The strong financial results were expected, but the large drop in oil prices wasn't anticipated to impact the stock this dramatically.
 Despite reporting huge increases in all key metrics outside of revenue, Weatherford (NYSE:WFT) still managed to disappoint the stock market. The oilfield services firm has spent the last year divesting operations and focusing on margins over revenue growth helping dramatically improve margins and profits. The stock though is down on the Q3'14 earnings release after other major oilfield service firms rebounded on positive earnings news.

 Read full article at Seeking Alpha.

 Disclosure: No positions mentioned. Please rad the disclaimer page for more details.

Thursday, October 23, 2014

Update: American Airlines Reports Record Q3 '14 Earnings


Summary

  • American Airlines reported Q314 earnings.
  • The stock is a strong buy.
  • The investment thesis anticipated short-term issues in Q3 to subside and provide for big gains in 2015 on the sliding fuel prices.
Before the market open, American Airlines Group (NASDAQ:AAL) reported record Q314 earnings. The numbers even beat analyst estimates, but the numbers were highly disappointing compared to expectations when the quarter started. This scenario further highlights how the airline industry is in a more favorable environment with tailwinds easily offsetting short-term issues.

Read the full article at Seeking Alpha.


Disclosure: Long AAL. Please review the disclaimer page for more details. 




Update: Yelp Reports Q314 Earnings


 Summary

  • Yelp reported Q314 earnings.
  • Stock is a solid buy on any dips.
  • The original investment thesis didn't anticipate the mixed guidance, but the stock remains on strong growth trajectory factoring in normal bumps in the road.
 After the close, Yelp (NYSE:YELP) reported Q314 earnings that easily beat company guidance and analyst estimates. The online consumer review site provided mixed Q4 guidance that disappointed the market, sending stock down as much as 15% in after hours.


 Read full article at Seeking Alpha.


 Disclosure: Long YELP. Please read the disclaimer page for more details.

It Appears That Icahn Is Right About Apple In One Regard


Summary

  • Though Icahn has overly aggressive forecasts for Apple, he has one point that appears very accurate.
  • Icahn suggests mutual funds are under invested in Apple, but he has not made the case for funds actually having more cash to invest in the stock.
  • Apple's PE continues to inversely relate to the market cap.
After some very bullish media reports regarding demand for the new iPhone 6/6+, Apple (AAPL) has gone nowhere. Sure the overall volatility in the stock market hasn't helped since the much anticipated release of the new phones back in September, but it appears that Apple faces larger problems to obtaining a higher earnings multiple.

Read the full article at Seeking Alpha.


Disclosure: Long AAPL. Please review the disclaimer page for more details.