24/7 Wall St. » LOGI

Top Analyst Upgrades & Downgrades (AET, AEM, APD, ALU, MDRX, AMZN, AMCC, BIDU, CBG, CTCT, DECK, EBAY, LOGI, PCS, PM, REGN, SNDK, STX, WDC, ZNGA)

Administrator — Fri, 27 Apr 2012 12:17:32 +0000

These are some of the top analyst upgrades, downgrades and initiations seen in Wall Street research calls this Friday.

Aetna Inc. (NYSE: AET) Reiterated Buy with a target price of $55 at Argus.

Agnico-Eagle Mines Limited (NYSE: AEM) Raised to Outperform at Credit Suisse.

Air Products & Chemicals Inc. (NYSE: APD) Cut to Neutral at Citigroup.

Alcatel-Lucent SA (NYSE: ALU) Maintained Underperform and cut estimates at Jefferies.

Allscripts Healthcare (NASDAQ: MDRX) Cut to Neutral at Credit Suisse; Cut to Equal-weight at Barclays.

Amazon.com Inc. (NASDAQ: AMZN) Raised to Buy at BofA/ML; Raised to Buy at Nomura; Raised to Buy at Goldman Sachs; Maintained Hold but raised target to $230 at Canaccord Genuity.

Applied Micro Circuits Corp. (NASDAQ: AMCC) Cut to Hold at Wunderlich.

Baidu, Inc. (NASDAQ: BIDU) Maintained Neutral but target cut at Credit Suisse.

CBRE Group, Inc. (NYSE: CBG) named Bull of the Day at Zacks.

Constant Contact (NASDAQ: CTCT) Cut to Neutral at Janney; Cut to Market Perform William Blair.

Deckers Outdoor Corp. (NASDAQ: DECK) Cut to Hold at Jefferies; Cut to Hold at Canaccord Genuity.

eBay Inc. (NASDAQ: EBAY) Reiterated Buy and raised target to $48 from $40 at Argus.

Logitech International (NASDAQ: LOGI) Raised to Outperform at BNP Paribas.

MetroPCS (NYSE: PCS) Cut to Hold at Argus; Cut to Hold at Deutsche Bank; Cut to Hold at Canaccord Genuity.

Philip Morris International Inc. (NYSE: PM) Reiterated Buy and raised target to $94 from $88 at Argus.

Regeneron Pharmaceuticals, Inc. (NASDAQ: REGN) Cut to Market Perform at BMO.

SanDisk Corporation (NASDAQ: SNDK) Raised to Buy at Jefferies.

Seagate Technology PLC (NASDAQ: STX) Cut to Neutral at BofA/ML.

Western Digital Corporation (NYSE: WDC) Cut to Neutral at BofA/ML.

Zynga, Inc. (NASDAQ: ZNGA) Raised to Neutral at BofA/ML; Raised to Overweight at JPMorgan; Maintained Hold but cut target to $13 from $15 at Canaccord Genuity.

AAR Corporation (NYSE: AIR) named Bear of the Day at Zacks.

If you enjoyed the top analyst upgrades and downgrades, you can join our free email newsletter that includes analyst summaries each morning sent right to your inbox. We also cover top issues such as IPOs, special financial exclusives, mergers and more. Sign up in the box below.

JON C. OGG

Filed under: Analyst Calls Tagged: AEM, AET, ALU, AMCC, AMZN, APD, BIDU, CBG, CTCT, DECK, EBAY, LOGI, MDRX, PCS, PM, REGN, SNDK, STX, WDC, ZNGA

Top Active Trader Alerts (AKAM, CRUS, CTXS, CROX, EA, EQIX, HTWR, HRB, LOGI, NUAN, SKX, STMP, TQNT, XLNX)

Administrator — Thu, 26 Apr 2012 12:55:30 +0000

There are many stocks on the move this morning and most are due to the endless reports of earnings. This Thursday morning’s top pre-market winners and losers are the following:

Akamai Technologies, Inc. (NASDAQ: AKAM) is down 5.5% this morning at $36.60 on over 100,000 shares. The media and content accelerator beat earnings estimates even though earnings were down 15%. Despite a revenue gain, the company announced that its CEO would step down from the company by the end of 2013.

Cirrus Logic, Inc. (NASDAQ: CRUS) rose 11% ahead of the close to $23.09 today, but shares are up another 8% or so on over 500,000 shares since the market closed after reporting revenues and earnings ahead of estimates. This will mark a 52-week high.

Citrix Systems, Inc. (NASDAQ: CTXS) beat earnings and raised guidance; the stock was up 6.5% last night and shares are now up 8.3% at $23.09 on almost 50,000 shares.

Crocs, Inc. (NASDAQ: CROX) had a 32% earnings gain is being trumped with an outlook that is not as robust as investors were hoping. Shares were down over 8% last night but the stock is down only about 4.5% at $21.04 this morning.

Electronic Arts Inc. (NASDAQ: EA) is trading up almost 8% at $16.20 and we have seen almost 500,000 shares trade hands. There is a rumor of a buyout or of some sort of deal involving the company but details are not that clear as of yet.

Equinix, Inc. (NASDAQ: EQIX) won on an earnings gain yet again and shares were up 7.6% last night; now shares are up 8.5% at $162.21 and that is a new 52-week high above $161.56 if it holds.

Heartware International, Inc. (NASDAQ: HTWR) is up over 15% at $80.10 on more than 100,000 shares; the company received a favorable FDA Advisory Committee vote for its Ventricular Assist System to bridge transplant for patients with end-stage heart failure.

H&R Block, Inc. (NYSE: HRB) claimed a record year in total tax clients the company is shedding some 350 jobs and is shutting some 250 stores in order to save money. Shares were down over 10% last night and are now down 13.9% at $14.41 pre-market.

Logitech International SA (NASDAQ: LOGI) reported earnings, but this is up because of a change made in its executive management in what investors will hope is a solid turnaround. Shares are up over 13% at $8.85 in thin pre-market trading.

Nuance Communications, Inc. (NASDAQ: NUAN) issued guidance that appears to be above expectations and shares are continuing their surge. This is up almost 13% on almost 200,000 shares pre-market.

Skechers U.S.A., Inc. (NYSE: SKX) is up 16% at $17.34 in thin pre-market trading despite a huge drop in sales and despite a loss as the cleaning out of inventory and restructuring is taking hold with pairs sold on the rise.

Stamps.com Inc. (NASDAQ: STMP) is up 11.3% at $31.50 in thin volume pre-market after it grew handily: 27% in its core PC postage revenues and up 41% in non-GAAP earnings per share.

TriQuint Semiconductor, Inc. (NASDAQ: TQNT) rose over 7% yesterday as an Apple-winner, but shares are down huge as guidance fell short of estimates. Maybe Apple drove too hard of a bargain. The drop was over 13% last night and the drop this morning is 14.6% at $4.71 on over 350,000 shares.

Xilinx, Inc. (NASDAQ: XLNX) showed a net income drop but its outlook for the current quarter is signaling improvements are on the way. Shares were up over 7% last night and that is the same today with a gain of 7.36% to $36.85 on more than 50,000 shares in the pre-market.

JON C. OGG

Filed under: Pre-Market Activity, Trading Alert Tagged: AKAM, CROX, CRUS, CTXS, EA, EQIX, HRB, HTWR, LOGI, NUAN, SKX, STMP, TQNT, XLNX

Top Analyst Upgrades & Downgrades (ALU, AMZN, APOL, MT, T, CY, DK, EBAY, ESRX, GOOG, HFC, JNS, LVS, LOGI, JWN, POT, VZ, WPO, WFM, YHOO)

Administrator — Thu, 29 Mar 2012 12:23:23 +0000

These are some of the top analyst upgrades, downgrades, and initiations seen from Wall Street research calls this Thursday.

Alcatel-Lucent S.A. (NYSE: ALU) Maintained Sell with $2.00 target at S&P.

Amazon.com, Inc. (NASDAQ: AMZN) Started as Buy at ThinkEquity.

Apollo Group Inc. (NASDAQ: APOL) Cut to Hold at Argus.

ArcelorMittal (NYSE: MT) Raised to Neutral at BNP Paribas.

AT&T Inc. (NYSE: T) Cut to Neutral at Baird.

Cypress Semiconductor Corporation (NASDAQ: CY) Raised to Buy at Lazard (late Wednesday call).

Delek US Holdings Inc. (NYSE: DK) Raised to Outperform at Credit Suisse; named as value stock of the day at Zacks.

eBay Inc. (NASDAQ: EBAY) Started as Buy at ThinkEquity.

Express Scripts Inc. (NASDAQ: ESRX) Reiterated Buy and raised target from $65 to $67 at BofA/ML.

Google Inc. (NASDAQ: GOOG) Started as Buy at ThinkEquity.

HollyFrontier Corporation (NYSE: HFC) Cut to Neutral at Credit Suisse.

Janus Capital Group, Inc. (NYSE: JNS) Cut to Hold at Jefferies.

Las Vegas Sands (NYSE: LVS) Reiterated Buy and raised target from $60 to $65 at BofA/ML.

Logitech International (NASDAQ: LOGI) named Bear of the Day at Zacks.

Nordstrom Inc. (NYSE: JWN) Raised to Buy at Goldman Sachs.

Potash Corp. of Saskatchewan (NYSE: POT) Started as Buy at Stifel Nicolaus.

Verizon Communications Inc. (NYSE: VZ) Cut to Neutral at Baird.

The Washington Post Co. (NYSE: WPO) named Bull of the Day at Zacks.

Whole Foods Market, Inc. (NASDAQ: WFM) Cut to Neutral at Goldman Sachs.

Yahoo! Inc. (NASDAQ: YHOO) Started as Hold at ThinkEquity.

JON C. OGG

Filed under: 24/7 Wall St. Wire, Analyst Calls Tagged: ALU, AMZN, APOL, CY, DK, EBAY, ESRX, GOOG, HFC, JNS, JWN, LOGI, LVS, MT, POT, T, VZ, WFM, WPO, YHOO

Top Analyst Upgrades & Downgrades (BZH, BHP, CCL, FDX, GGP, INTC, LLTC, LOGI, MTH, PNRA, POT, RYL, STLD, SF, TSLA, USB, WYNN)

Administrator — Tue, 17 Jan 2012 13:24:06 +0000

These are some of the top analyst upgrades, downgrades, and initiations seen from Wall Street brokerage and research firms this Tuesday morning.

Beazer Homes USA, Inc. (NYSE: BZH) Cut to Underperform at Credit Suisse.
BHP Billiton Limited (NYSE: BHP) Started as Buy at Goldman Sachs.
Carnival Corporation (NYSE: CCL) Cut to Neutral at JPMorgan.
FedEx Corporation (NYSE: FDX) Cut to Hold at Jefferies.
General Growth Properties (NYSE: GGP) Raised to Buy at Stifel Nicolaus.
Intel Corporation (NASDAQ: INTC) Cut to Neutral at JPMorgan.
Linear Technology Corporation (NASDAQ: LLTC) Cut to Underweight at JPMorgan.
Logitech International SA (NASDAQ: LOGI) Cut to Underweight at JPMorgan.
Meritage Homes Corporation (NYSE: MTH) Cut to Underperform at Credit Suisse.
Panera Bread Co. (NASDAQ: PNRA) Raised to Overweight at Morgan Stanley.
Potash Corp. of Saskatchewan (NYSE: POT) Raised to Sector Outperform at CIBC.
Ryland Group Inc. (NYSE: RYL) Cut to Underperform at Credit Suisse.
Steel Dynamics Inc. (NASDAQ: STLD) Started as Buy at Deutsche Bank.
Stifel Financial Corporation (NYSE: SF) Raised to Buy with $37 target at Goldman Sachs.
Tesla Motors, Inc. (NASDAQ: TSLA) Raised to Buy at Wunderlich.
U.S. Bancorp (NYSE: USB) Cut to Neutral at Citigroup.
Wynn Resorts Ltd. (NASDAQ: WYNN) Raised to Positive at Susquehanna.

If you enjoyed the top analyst calls, you can sign up in the box below to join our morning email list to receive news directly in your inbox each morning. We include major analyst upgrades and downgrades, IPO and M&A news, special situation developments, observations on Warren Buffett and key market gurus, as well as special exclusive feature stories.

JON C. OGG

Filed under: Analyst Calls Tagged: BHP, BZH, CCL, FDX, GGP, INTC, LLTC, LOGI, MTH, PNRA, POT, RYL, SF, STLD, TSLA, USB, WYNN

NTSB Recommends Ban On Driver Phone & Device Use (VZ, T, S, LOGI, AMT, CCI)

Administrator — Tue, 13 Dec 2011 18:58:35 +0000

Have you been hit or almost been hit by a car driver talking on their cellphone? Thousands of Americans have died as a result of phone-use related accidents. Thousands more have been injured. If you enjoy bicycling and use your bike often in cities, chances are high that you would like to be able to rip cellphones out of drivers’ hands or manually insert such devices into parts of those drivers. Many states, cities, and counties have bans or have regulations on acceptable use of cellphones and devices and the news today may mark the long beginning of the end for cellphone abuse by drivers.

The National Transportation Safety Board, usually referred to as the NTSB in public, is announcing a major safety recommendation related to “driver distractions caused by driver use of personal electronic devices.” The NTSB Fact Sheet notes, “The NTSB has called on the 50 states and the District of Columbia to ban the nonemergency use of PEDs (other than those designed to support the driving task) for all drivers.”

Frankly, the new recommended ban has little chance of success in the current form, even if parts of this should proceed. A call to ban all electronic devices in vehicles regardless of how they are used (except in cases of emergencies or integrated into the transportation needs) will not garner much public support as it is somewhat like stretching the limits of drunk driving blood levels all the way out to a new attempt of prohibition.

Still, this NTSB recommendation may be the start of a larger move to keep cellphones from being abused by drivers in many locations where no regulations exist. Drivers who text often cross 50 feet to 50 yards of pavement in a shorter period of time than it takes to type in “lol” or even “driving.” By the way, calling your friends to gossip about things or to see what is up for the night or weekend are not exactly ‘emergencies’ under this plan.

There could also be rules for teenagers that are different from adults. Many cities already have curfews for minors and technically minors are not allowed the same liberties and rights as adults who have a bit more life experience under their belts.

You can expect an outright assault from the phone makers and headset makers, the wireless carriers, the tower operators, and even the communication infrastructure equipment to fight this recommendation if it were to gather any momentum. Also, keep in mind that the NTSB has zero power to enforce or even to propose any such bill to move into law. All it can do is to make recommendations for safety regarding transportation activities.

Logitech International SA (NASDAQ: LOGI) is one headset maker that would severely if there was a nationwide ban on holding your cellphone but still allowed drivers to use cellphones if they have wireless or wired headsets for their mobile phones. Verizon Communications Inc. (NYSE: VZ), AT&T Inc. (NYSE: T), and Sprint Nextel Corporation (NYSE: S) would all fight a total ban on cellphone use under any circumstances other than emergency use.

American Tower Corporation (NYSE: AMT) and Crown Castle International Corporation (NYSE: CCI) have spent billions of dollars putting in cellphone towers around the nation, including the highways, to make it so that drivers can stay connected on their cellphones whether those drivers need to or not.

The market does not consider this “recommendation” a serious threat. Not yet. Frankly, for someone who does support a ban of texting and in-hand use of cellphones while driving, today’s recommendation by the NTSB is a disappointment. The proposal is too broad and sweeping for the public to support it. If this seemed to be a true threat then these stocks would have traded lower by a significant amount. Just do not be surprised when some legislator in Washington D.C. decides to take this cause up next year.

The NTSB pre-conference fact sheet is here.

JON C. OGG

Filed under: Infrastructure, Internet, Law, Regulation, Telecom, Transports, WiMAX, Wireless Tagged: AMT, CCI, LOGI, S, T, VZ

Xbox Live Challenging Cable Supremacy? (MSFT, AAPL, GOOG, CMCSA, TWC, VZ, CVC, SSNLF, LOGI)

Paul Ausick — Mon, 05 Dec 2011 15:44:56 +0000

Tomorrow’s launch of an upgrade to Xbox Live from Microsoft Corp. (NASDAQ: MSFT) is the latest shot in the battle for control of US TV sets. The Redmond giant isn’t the only high-tech player on the scene either. Both Apple Inc. (NASDAQ: AAPL) and Google Inc. (NASDAQ: GOOG) have interactive TV hardware available that has so far not had much of an impact on cable companies like Comcast Corp. (NASDAQ: CMCSA), Time Warner Cable Inc. (NYSE: TWC), or Cablevision Systems Corp. (NYSE: CVC). Is this time really going to be different?

The biggest problem with the cable companies’ set top boxes is the nearly impenetrable user interface. The new Xbox Live software completely changes that, replacing the hierarchical menus with a graphical interface that can accept voice, touch, and motion commands as well as commands from a smartphone or other handheld device. The idea is to make the TV interface as intuitive and easy-to-use as a smartphone.

Apple’s latest Apple TV offering lets users stream content from the iPhone to a TV set through its AirPlay feature. Google is working with Samsung Electronics (OTC: SSNLF) to integrate Google TV directly into a TV set. Users will still need a cable TV subscription to gain access to cable programming through the Xbox or other TV device.

One interesting thing about all this is that Microsoft, Apple, and Google are very likely to take over the distribution of content from cable companies like Comcast and Verizon Communications Inc. (NYSE: VZ). Not having to design, build, and market a set top box with a modern interface is not a bad thing for the cable guys, who will still make money by requiring users to pay for the cable subscription. Customers, of course, will very likely have to pay a (modest) fee to Microsoft, Apple, or Google for the privilege of connecting to the TV through another device. Xbox Live, for example, requires a $5/month fee for its premium service which allows users to control the TV.

Another possibility is that the TV control software will be paid for by advertising. Xbox Live does include advertising, and although Google has not revealed what it plans to do with its software, the company could choose to offer the TV software on an ad-supported basis.

A second interesting thing about Microsoft’s announcement is that this is one area in which Microsoft could actually be leading both Apple and Google. The Xbox Live interface is consistent with the Windows Phone 8 interface and will be the same as the user interface on Windows 8 which is due in the second half of next year. Apple was first to integrate handheld smartphones and tablets with a TV, but the Microsoft offering is far more mature than Apple’s offering. Google got sidetracked on a failed try with Logitech International SA (NASDAQ: LOGI), but its TV deal with Samsung could change things around because Samsung also sells more Android-based phones than any other company. Integrating Android with a TV is natural extension, but Google and Samsung are getting a bit of a late start.

The Xbox Live announcement could usher in the next big thing or it could just be another swing and miss at the integration of computing devices and TV sets. This time does look like it will be different.

Paul Ausick

Filed under: Cable Companies, Consumer Electronics, Entertainment, Hardware, Industry, Media, Technology Tagged: AAPL, CMCSA, CVC, GOOG, LOGI, MSFT, SSNLF, TWC, VZ

Top Analyst Upgrades & Downgrades (AAP, AMZN, BUD, CARB, CSCO, CSC, DF, EPD, HSP, KFT, LOGI, NOK, PCG, SD, SPRD, SRDX, VRTX)

Administrator — Thu, 10 Nov 2011 13:35:27 +0000

These are some of Thursday’s top analyst upgrades, downgrades, and initiations seen from Wall Street research calls.

Advance Auto Parts. Inc. (NYSE: AAP) cut to Neutral at Credit Suisse.
Amazon.com Inc. (NASDAQ: AMZN) added to Strong Sell List at Zacks.
Anheuser-Busch InBev (NYSE: BUD) Cut to Neutral at UBS.
Carbonite, Inc. (NASDAQ: CARB) Reiterated Buy with $16 target at Canaccord Genuity.
Cisco Systems Inc. (NASDAQ: CSCO) Raised to Buy at Deutsche Bank; Raised to Buy at Citigroup; Target raised to $26 from $25 at Credit Suisse.
Computer Sciences Corporation (NYSE: CSC) Cut to Underweight at JPMorgan.
Dean Foods Company (NYSE: DF) Cut to Sell at S&P Capital IQ (late-Wednesday); Maintained Buy at Bof A/ML.
Enterprise Products Partners (NYSE: EPD) named Bull of the Day at Zacks.
Hospira, Inc. (NYSE: HSP) named Bear of the Day at Zacks.
Kraft Foods Inc. (NYSE: KFT) Reiterated Buy with $40 target at Argus.
Logitech International SA (NASDAQ: LOGI) Raised to Hold at S&P Capital IQ (late-Wednesday).
Nokia Corporation (NYSE: NOK) maintained Hold with $7.50 target at Canaccord Genuity.
PG&E Corporation (NYSE: PCG) cut to Neutral at Credit Suisse.
SandRidge Energy, Inc. (NYSE: SD) Cut to Neutral at Goldman Sachs.
Spreadtrum Communications Inc. (NASDAQ: SPRD) Reiterated Buy and raised estimates at Canaccord Genuity.
SurModics Inc. (NASDAQ: SRDX) named as Aggressive Growth at Zacks.
Vertex Pharmaceuticals Incorporated (NASDAQ: VRTX) Raised to Equal-Weight at Morgan Stanley.

JON C. OGG

Filed under: Airlines Tagged: AAP, AMZN, BUD, CARB, CSC, CSCO, DF, EPD, HSP, KFT, LOGI, NOK, PCG, SD, SPRD, SRDX, VRTX

Top Analyst Upgrades & Downgrades (ALU, ARMH, AVP, BCS, CSCO, C, HGSI, LAD, LOGI, NVDA, STR)

Administrator — Tue, 01 Nov 2011 12:06:07 +0000

These are some of Tuesday’s top analyst upgrades, downgrades, and initiations seen from Wall Street research calls.

Alcatel-Lucent SA (NYSE: ALU) Cut to Neutral at JPMorgan.
ARM Holdings PLC (NASDAQ: ARMH) Started as Hold at Canaccord Genuity.
Avon Products Inc. (NYSE: AVP) Cut to Hold at Jefferies.
Barclays PLC (NYSE: BCS) Cut to Neutral at UBS.
Cisco Systems, Inc. (NASDAQ: CSCO) Started as Buy at MKM Partners.
Citigroup, Inc. (NYSE: C) Raised to Outperform with $48 target at Credit Suisse.
Human Genome Sciences Inc. (NASDAQ: HGSI) Cut to Underperform as Bear of the Day at Zacks.
Lithia Motors, Inc. (NYSE: LAD) named as value stock of the day at Zacks.
Logitech International SA (NASDAQ: LOGI) Cut to Strong Sell at S&P (late-Monday call).
NVIDIA Corporation (NASDAQ: NVDA) Cut to Hold at Canaccord Genuity.
Questar Corporation (NYSE: STR) Raised to Outperform as Bull of the Day at Zacks.

JON C. OGG

Filed under: Analyst Calls Tagged: ALU, ARMH, AVP, BCS, C, CSCO, HGSI, LAD, LOGI, NVDA, STR

24/7 Wall St. Top Analyst Calls of the Week (CARB, GLW, DG, INTC, LOGI, LULU, MAKO, MCD, MCP, NFLX, NBG, P, RENN, YHOO, YNDX, YOKU, LVS, WYNN, BAC, WFC)

Administrator — Sun, 25 Sep 2011 11:45:48 +0000

Each morning we review our top upgrades, downgrades and initiations from Wall St. research notes. We then look back over these at the end of the week to more closely review calls that highlight underlying catalysts or developments that go far beyond just a one-day impact. Many calls turn out to offer keen insight, but some get a failing grade.

This last week’s top analyst calls of the week were in the following: Carbonite Inc. (NASDAQ: CARB); Corning Inc. (NYSE: GLW); Dollar General Corporation (NYSE: DG); Intel Corporation (NASDAQ: INTC); Logitech International SA (NASDAQ: LOGI); Lululemon Athletica Inc. (NASDAQ: LULU); MAKO Surgical Corp. (NASDAQ: MAKO); McDonald’s Corporation (NYSE: MCD); Molycorp Inc. (NYSE: MCP); Netflix Inc. (NASDAQ: NFLX); National Bank of Greece SA (NYSE: NBG); Pandora Media Inc. (NYSE: P); Renren Inc. (NYSE: RENN); Yahoo! Inc. (NASDAQ: YHOO); Yandex NV (NASDAQ: YNDX); Youku.com Inc. (NYSE: YOKU); Las Vegas Sands Corp. (NYSE: LVS); Wynn Resorts Ltd. (NASDAQ: WYNN); Bank of America Corporation (NYSE: BAC); and Wells Fargo & Co. (NYSE: WFC).

Carbonite (NASDAQ: CARB) was one of the most mispriced IPOs for 2011, but to the downside by our take due to poor market conditions. The cloud storage player saw its quiet period end and the firms were mostly positive on the stock:

Started as Buy with a $16 target at Canaccord Genuity;
Started as Outperform with a $17 target at Oppenheimer;
Started as Outperform at William Blair;
Started as Overweight at JP Morgan;
Started as Buy with a $16 target at BofA/ML.

Corning (NYSE: GLW) is truly a tech value stock. Unfortunately, it is going to have a crummy Christmas in TVs and monitors unless can be massively offset and overcome by smartphones. The company already talked down its numbers a week or so earlier. On Friday it was named as the dubious Bear of the Day at Zacks.

Filed under: Analyst Calls, Research, The Week Tagged: BAC, CARB, DG, GLW, INTC, LOGI, LULU, LVS, MAKO, MCD, MCP, NBG, NFLX, P, RENN, WFC, WYNN, YHOO, YNDX, YOKU

Logitech Forecast, An Ill Omen For PC Makers (LOGI, DELL, HPQ, AAPL, GOOG, INTC, MSFT)

Administrator — Thu, 22 Sep 2011 13:31:06 +0000

Computer peripherals maker Logitech International SA (NASDAQ: LOGI) has been having a tough year and its going to get tougher. The company posted an EPS loss of -$0.17 in its first fiscal quarter and yesterday the company clipped its outlook for fiscal year 2012 for the third time this year. There could be a warning here for PC makers like Hewlett-Packard Co. (NYSE: HPQ) and Dell Inc. (NASDAQ: DELL). Even Apple Inc. (NASDAQ: AAPL) may not be immune.

Logitech revised its revenue estimate for the fiscal year from $2.5 billion to $2.4 billion. The company estimates operating income will fall from $143 million to $90 million. When Logitech released its first quarter earnings in July, it revised sales down from $2.6 billion to $2.5 billion, and operating income estimates from $185 million to $143 million.

Yesterday’s announcement cuts the original operating income estimate in half, which means that margins are shriveling. In its announcement, the company’s acting president/CEO said the company now has a “thorough understanding of what needs to be fixed. Our strategy remains unchanged.” Ahem. Lowering operating income estimates by half doesn’t indicate that perhaps the strategy is wrong?

On gross margins, Logitech expects full-year margins to rise to 33%, from the dismal 26.1% in the first quarter, more than 7 points lower than in the same period a year ago. The company recently had to cut the price on its Logitech Revue TV box from Google Inc. (NASDAQ: GOOG) from $249 to $99, which certainly won’t help margins in the second quarter. Where the margin increase is supposed to come from is not specified.

Even though many of Logitech’s products are aimed at home users, its keyboards and mice also have a place in businesses. The company said in its first quarter Form 10-Q that it believes it can increase sales into enterprises, but if that’s part of their strategy to turn the company around, it could be just more wishful thinking.

As the economy weakens and large PC users like financial services companies announce tens of thousands of layoffs, the outlook for PC and peripheral sales has got to weaken. No company is going to replace PCs for people who are soon to be shown the door. Those companies aren’t going to be replacing keyboards and mice anytime soon either.

Logitech’s falling revenue could be a signal of continued weakness in PC sales or it could be a trailing indicator. Either way, expectations for PC makers probably aren’t going to rise on Logitech’s revised outlook.

And what about Microsoft Corporation (NASDAQ: MSFT) and Intel Corporation (NASDAQ: INTC)? Microsoft has already unveiled a planned version of Windows and Intel still ends up in about 4 out of every 5 PCs made. If peripherals are slow, imagine what a software upgrade cycle push-out could mean for new PC sales as well.

Less than half an hour before markets open Logitech shares are down more than -14%, at $7.47, which would be a new 52-week low if it holds. The current 52-week range is $7.85-$23.29.

Paul Ausick

Filed under: Consumer Electronics, PC Companies, Software, Technology Companies Tagged: AAPL, DELL, GOOG, HPQ, INTC, LOGI, MSFT