The following list includes ratings changes and financial information for wireless companies announced this week by investment-banking and financial-services firms.
- Carrier
- Standard & Poor’s Ratings Services lowered its corporate credit rating on Sprint Nextel Corp. to BBB from BBB+ and removed the company from CreditWatch with negative implications.
- Lehman Brothers lowered its estimates on Verizon Communications to reflect recent divestitures. New estimates are EPS of $2.37 rather than $2.45 for 2007 and $2.67 rather than $2.74 for 2008. RW Baird lowered its estimates on the company to $2.33 from $2.35 for 2007 based on lowered wireline revenue expectations.
- Credit Suisse First Boston raised its estimates on AT&T Inc. to $41 from $39 on solid fourth-quarter results. R.W. Baird raised its price target on the company to $41 from $38 and increased its estimates to $2.60 from $2.53 for 2007. Merrill Lynch raised its price target on AT&T to $39 from $38. Standard & Poor’s Ratings Services assigned an A rating to AT&T Inc.’s proposed $1 billion of floating-rate notes due 2010 and $500 million 5.625-percent global notes due 2016. All of the company’s other ratings were affirmed.
Other - RBC Capital Markets raised its estimates on Sierra Wireless on expectations of a healthy first quarter. The firm’s new estimates on Sierra are EPS of 46 cents on revenues of $294 million, up from 43 cents on $282 million. CIBC World Markets adjusted its estimates on Sierra Wireless to 78 cents on revenues of $358.8 million from 69 cents on $285.1 million for 2007. BMO Capital markets upped its estimates on Sierra to 70 cents from 45 cents for 2007 and to 84 cents from 46 cents for 2008. RBC Capital Markets raised its estimates on the company to 50 cents from 46 cents for 2007 and increased its price target to $16 from $15.
- First Albany Capital increased its estimates on Atheros Communications Inc. after the company reported solid quarterly results. The company raised its estimates on Atheros to 88 cents per share on revenues of $415 million from 85 cents on $398 million for 2007.
- CIBC World Markets upgraded Alvarion to sector outperform from sector perform, saying it is seeing increased interest in the company’s products and that the company has a strong presence in emerging markets.
- Credit Suisse First Boston lowered its estimates on Skyworks Solutions based on weak guidance. New estimates are 40 cents on revenues of $773 million from 43 cents on $810 million for 2007.
- RBC Capital Markets raised its estimates on Openwave Systems after the company reported in-line second-quarter results. Its new EPS estimate on the company for 2007 is a loss of 1 cent rather than a loss of 8 cents. Robert W. Baird tweaked its estimates on Openwave, raising its EPS estimate on the company to breakeven from a loss of 6 cents per share for the fiscal 2007 year. It also raised its 2008 EPS estimate on the company to 47 cents from 46 cents.
