The following list includes ratings changes and financial information for wireless companies announced this week by investment-banking and financial-services firms.
Click here for wireless ratings from past weeks from RCR Wireless News.
Carrier
- Standard & Poor’s Ratings Services lowered its corporate credit rating on Telephone & Data Systems Inc. to BBB+ from A-. The outlook on the company is stable. The firm said it based the downgrade on a variety of challenges the company faces, including “shoring up its accounting systems, resources, and related controls, and the fact that aspects of its governance may impede its ability to adequately address these issues.”
- Prudential Equity Group raised its estimates on AT&T Inc. after the company reported strong third-quarter results. New estimates for 2006 are $2.31 rather than $2.20. Estimates for 2007 increase to $2.65 from $2.50. RW Baird raised its estimates on the company to $2.30 from $2.22 for 2006 and to $2.53 from $2.44 for 2007. It also raised its price target on the company to $38 from $34. RBC Capital Markets raised its price target on AT&T to $37 from $34 and raised its estimates on the company to $2.35 from $2.21 for 2006 and to $2.56 from $2.46 for 2007. Morgan Stanley raised its price target on AT&T to $37 from $33 and raised estimates to $2.54 from $2.53 for 2007 and to $2.81 from $2.62 for 2008.
- RW Baird raised its estimates on BellSouth after the company reported strong third-quarter results, including strength at Cingular. For 2006, EPS estimates increase to $2.39 from $2.26, and for 2007 estimates increase to $2.61 from $2.45.
- Credit Suisse First Boston lowered its estimates on Sprint Nextel based on lower contributions from Boost Mobile. New estimates are $1.31 for 2006 and $1.43 for 2007.
Handset and infrastructure vendors
- Credit Suisse First Boston adjusted its estimates on Lucent Technologies Inc. after the company reported quarterly results. For 2007, CSFB expects Lucent to report EPS of 11 cents on revenues of $9 billion rather than EPS of 13 cents on $9.2 billion.
- Prudential Equity Group lowered its 2007 estimates on Alcatel to $1.04 from $1.05 based on below-consensus results. RBC Capital Markets lowered its estimates on the company to 72 cents from 78 cents for 2006 and to 79 cents from 84 cents for 2007.
- BMO Capital Markets lowered its 2007 EPS estimate on Nokia Corp. to $1.39 from $1.43 after the vendor reported mixed quarterly results. RBC Capital Markets lowered its 2006 estimates on the company to $1.20 from $1.29 but raised 2007 estimates to $1.42 from $1.41. Lehman Brothers lowered its estimates on the company to $1.22 from $1.27 for 2006 and to $1.42 from $1.50 for 2007.
- Prudential Equity Group upgraded its rating on Ericsson to overweight from neutral and raised its price target on the company to $45 from $37 based on increased 2007 estimates. New estimates for 2006 are $2.11, up from $2.04. Estimates for 2007 are $2.61, up from $2.44. Lehman Brothers raised its price target on the company to $45 from $38 and raised its estimates to $2.05 from $2.04 for 2006 and to $2.37 from $2.34 for 2007.
Other
- Prudential Equity Group lowered its price target and estimates on RadioShack Corp. after the company reported disappointing third-quarter results. The company’s new price target is $12, down from $14. EPS estimates drop to 67 cents from 85 cents for 2006 and to 82 cents from $1.02 for 2007. RBC Capital Markets cut its price target on the retailer to $15 from $16 and dropped its estimates to 70 cents from $1 for 2006 and to 65 cents from $1.15 for 2007. Lehman Brothers lowered its estimates on the company to 67 cents from 94 cents for 2006 and to 85 cents from $1.05 for 2007.
- CIBC World Markets adjusted its estimates on Novatel Wireless Inc. after the company reported third-quarter results. For 2006, CIBC expects the company to report EPS of 10 cents on revenues of $204.7 million from 16 cents on $204.3 million. For 2007 it expects EPS of 48 cents on revenues of $250 million from 49 cents on revenues of $255.2 million.
- CIBC World Markets lowered its estimates on RF Micro Devices after the company delivered solid quarterly results. New estimates for 2006 are EPS of 44 cents on revenues of $1 billion, down from EPS of 47 cents on revenues of $1.03 billion. For 2007, the firm expects EPS of 58 cents, which is unchanged from its previous estimates. However it expects revenues to drop to $1.13 billion from $1.17 billion. BMO Capital Markets raised its estimates on the company to 42 cents from 33 cents for 2007 and to 34 cents from 28 cents for 2008. Lehman Brothers raised its 2007 estimates on the company to 46 cents from 43 cents.
- BMO Capital Markets slightly raised its estimates on Texas Instruments Inc. to $1.89 from $1.88 for 2006 and to $2.07 from $2.06 for 2007. Credit Suisse First Boston lowered its estimates on the company to $1.60 on revenues of $14.3 billion from $1.61 on $14.6 billion for 2006. For 2007, it expects $1.89 on $15.4 billion rather than $1.92 on revenues of $16.4 billion. Prudential Equity Group lowered its price target to $36 from $40 on TI. It also lowered its estimates to $1.67 from $1.68 for 2006 and to $2.01 from $2.23 for 2007. R.W. Baird lowered its estimates on the company to $1.66 from $1.69 for 2006 and to $1.70 from $1.75 for 2007. Baird also reduced its price target on TI to $40 from $43.
- RBC Capital Markets raised its 2007 estimate on VeriSign from $1.07 to $1.08 on preliminary financial figures released by the company. Credit Suisse First Boston raised its price target on the company to $24 from $23.
- BMO Capital Markets raised its estimates on Freescale Semiconductor to $2.37 from $2.30 for 2006 but lowered its 2007 estimate to $1.99 from $2 after the company reported good third-quarter results.
- BMO Capital Markets slightly adjusted its estimates on Broadcom Corp. after the company released guidance. New estimates are $1.31 rather than $1.32 for 2006 and $1.35 rather than $1.33 for 2007. Credit Suisse First Boston lowered its estimates on the company to 60 cents on revenues of $3.66 billion for 2006, from 68 cents on $3.68 billion. Prudential Equity Group lowered its price target on the company to $33 from $35 and lowered estimates to 75 cents from 78 cents for 2006 and to $1 from $1.15 for 2007.
