The following list includes ratings changes and financial information for wireless companies announced this week by investment-banking and financial-services firms.
- Handset and infrastructure vendors
- CIBC World Markets lowered its estimates on Motorola Inc. after the company significantly lowered guidance for the first quarter. For 2007, CIBC lowered its estimates on Motorola to EPS of 53 cents on revenue of $41.4 billion from $1.01 on $44.1 billion. For 2008, it lowered its estimates to $1.19 on $46.5 billion from $1.33 on $48.4 billion. BMO Capital Markets downgraded Motorola to market perform and lowered its EPS estimates on the company to 58 cents from $1.20 for 2007 and to $1.30 from $1.55 for 2008. BMO also lowered its price target on the company to $20 from $24. CSFB lowered its estimates on the company to 48 cents from 95 cents for 2007 and to $1.12 from $1.34 for 2008. Prudential Equity Group lowered its estimates on Motorola to 44 cents from $1.13 for 2007 and dropped its price target to $20 from $24. Goldman Sachs lowered its price target on the company to $16 from $18. RBC Capital Markets downgraded Motorola to sector perform from outperform and lowered its price target on the company to $19 from $22. It also lowered its estimates on the company to 49 cents from $1.18 fro 2007 and to $1.20 from $1.41 for 2008. Standard & Poor’s revised its outlook on the company to negative and lowered its short-term and commercial paper ratings on the company to A-2 from A-1, reflecting greater than anticipated operational and competitive pressures in the handset arena. S&P affirmed its A- corporate credit rating on the company.
- Robert W. Baird lowered its revenue estimates on Nortel Networks but raised its EPS estimates after the company reported good fourth-quarter results. Its new estimates for 2007 are EPS of 75 cents on revenue of $11.2 billion from 74 cents on $11.5 billion. For 2008 it lowered both its revenue and EPS estimates on the company to $11.6 billion and $2 from $11.7 billion and $2.11. RBC Capital Markets lowered its EPS estimates on Nortel to 44 cents from 47 cents for 2007 on flat guidance. CIBC World Markets lowered its 2007 estimate to EPS of 72 cents on revenue of $11.4 billion from $1 on $12.4 billion. Prudential Equity Group lowered its 2007 estimates on Nortel to 17 cents from 45 cents and its 2008 estimates to $1.23 from $1.54.
CIBC World Markets raised its estimates on Research In Motion Ltd. based on continued strong subscriber growth and an accelerated upgrade cycle driven by new market launches. Its new 2007 estimates are EPS of $3.43 on revenue of $3.05 billion from $3.41 on revenue of $3.04 billion. Its 2008 estimates on the company increase to $4.88 on revenues of $4.55 billion from $4.59 on $4.29 billion.
Other - CIBC World Markets lowered its estimates on Skyworks due to ripple effects from weakness at Motorola. For 2007, it lowered its estimates on Skyworks to earnings of 36 cents per share on revenue of $715.3 million from 50 cents on $774 million. For 2008 it expects EPS of 46 cents on revenue of $751.3 million from 68 cents on revenue of $848 million. It also lowered its price target to $8 from $9.
- CIBC World Markets downgraded RF Micro Devices to sector performer from sector outperformer based on risk associated with its relationship with Motorola. The firm also lowered its estimates on the company to 10 cents on revenue of $254 million for the fourth quarter of 2007 from 11 cents on $256 million. For 2008 it now expects EPS of 47 cents on revenue of $1.08 billion from 54 cents on $1.14 billion.
