Seeking Alpha

Trefis

 
View as an RSS Feed
View Trefis' Articles BY TICKER:
  • Salesforce.com Earnings: Revenue Growth Strategy Continues To Trim Margins
    Wed, May. 21 CRM 3 Comments

    Summary

    • Quarterly revenues reached approximately $1.28 billion for the company, with $1.15 billion recognized from its subscription and support business.
    • The subscription and support business is Salesforce's largest division, and the company has been reinvesting aggressively to accelerate its revenue growth rate.
    • Revenues from its professional services business, which include various consulting and other training services to its customers, expanded 58% on a year-on-year basis.
  • Focus On China To Expand Broadcom's Wireless Business
    Wed, May. 21 BRCM Comment!

    Summary

    • China accounts for more than 90% of Broadcom's exports.
    • The issuance of 4G licenses, promotion of the Broadband China project and popularization of HD videos provide significant growth opportunities in the region.
    • Broadcom has been focusing on building relationships with low-cost smartphone makers in China.
  • NetApp Earnings Preview: Slowdown In Storage Hardware Sales Could Weigh On Results
    Tue, May. 20 NTAP Comment!

    Summary

    • Storage hardware product sales declined by 3% across the industry in 2013.
    • EMC reported a decline in its storage products revenues - a trend which is likely to be seen in NetApp's earnings as well.
    • On the other hand, NetApp's maintenance revenues (both software and hardware) could continue to grow on the back of a solid customer base.
  • Demand For Higher-Generation Glass Substrates Will Drive Corning's Display Volumes
    Tue, May. 20 GLW 1 Comment

    Summary

    • Since 2011, declining LCD prices for Corning have taken a toll on the segment's revenues, which dropped to $2.54 billion in 2013.
    • In coming years, Corning will benefit from the growing demand for higher-Generation (larger-sized) glass substrates from device manufacturers.
    • Additionally, demand for LCD TVs, PC monitors, mobiles and tablets, especially with larger screen sizes, will continue to drive display volumes at Corning.
  • Best Buy Earnings Preview: Key Initiatives That Will Drive Growth
    Tue, May. 20 BBY 3 Comments

    Summary

    • After witnessing a significant decline in its top line in fiscal 2013, the company saw its growth re-accelerate in fiscal 2014 as it benefited from its restructuring initiative.
    • Accelerating growth in its online segment remains one of the main focuses for the company.
    • The company also is emphasizing dedicated selling space For Microsoft, Apple and Samsung products.
  • Xiaomi Launches World's First Tablet Based On Nvidia's Tegra K1
    Tue, May. 20 NVDA Comment!

    Summary

    • Nvidia believes that Tegra K1 will help the company set new mobile standards by supporting the latest PC-class gaming technologies on the mobile platform.
    • The Xiaomi MiPad will be available in China starting in June as an open beta.
    • Nvidia will benefit from Xiaomi's dominance in the Chinese smartphone market as well as its potential growth in the tablet market.
  • Lexmark Set To Acquire Swedish Company ReadSoft
    Mon, May. 19 LXK Comment!

    Summary

    • ReadSoft will be integrated with Perceptive Software, and this will give Lexmark a foothold in the fast growing content and business process management market in Europe.
    • The Perceptive Software division is the company's second biggest business unit and makes up over 10% of Lexmark's estimated value.
    • Perceptive experienced annual growth of 53% in 2013 and reported $239 million in revenues for FY13.
  • Rising Weibo Monetization Bodes Well For Sina's Advertising Business
    Mon, May. 19 SINA Comment!

    Summary

    • According to a pre-announcement from Sina, net revenues for Q1 should come in at about $171 million.
    • The figures include $135 million from advertising and $36 million from non-advertising, representing an annual increase of 36%.
    • We believe Weibo will continue to be the biggest contributor to Sina's growth, at least in the near-term.
  • Cisco Continues To Face Top Line Challenges But Upbeat Order Growth A Good Sign
    Fri, May. 16 CSCO 7 Comments

    Summary

    • Cisco saw revenues drop year-over-year by 5.5% as sustained weakness in emerging markets and sluggish spending by service providers weighed on results.
    • The company was able to offset some of the pressure with a strong showing in the U.S., where both commercial as well as enterprise orders grew by over 10% y-o-y.
    • Cisco seems well positioned to reclaim some of its lost market share as the strong order flow translates into revenues, possibly toward the back half of the year.
  • Salesforce.com Pre-Earnings: Expect Top Line Acceleration, Margin Contraction
    Fri, May. 16 CRM Comment!

    Summary

    • Revenues for the company have seen tremendous growth, registering an annualized growth rate exceeding 30% since 2008.
    • This high growth $4 billion software company also is aggressively investing in its business.
    • Salesforce.com recently announced a strategic shift to offer specific solutions across industry verticals, a move that may depress operating profit margins.
  • Higher Semiconductor And Display Spending Drives Applied Materials' Growth In Q2
    Fri, May. 16 AMAT 1 Comment

    Summary

    • Operating profit exceeded 20% of revenue for the first time in nearly three years and earnings per share increased 75%, significantly outpacing revenue growth.
    • The company generated orders of $2.63 billion in the quarter, up 15% from Q1 2014, led by growth in display and silicon systems.
    • Growing TV demand and mobile investments are two key factors driving growth in the company's display segment.
  • Microsoft's Office For iPad Gains Traction
    Thu, May. 15 MSFT 10 Comments

    Summary

    • The Office For iPad suite, which includes Word, Excel and Power Point, has hit the 27 million download mark.
    • The Office productivity suite is Microsoft's biggest revenue driver and makes up 40% of its estimated value.
    • We think Microsoft can boost its revenues by seamlessly integrating its other products with Office and offering these bundled services to iPad users.
  • F5 Networks: Increased Focus On Security Solutions To Drive Growth
    Thu, May. 15 FFIV 1 Comment

    Summary

    • F5′s security and service provider business was an important growth driver behind its strong performance in Q2 2014.
    • The company's partnership with VMware will enhance its network and security program.
    • F5 claims that is has started to see sales wins for its Versafe services, a business it acquired in 2013.
  • How AMD's Market Share Can Rise To 30% After The MacPro Deal
    Thu, May. 15 AMD 24 Comments

    Summary

    • Competitive pricing and improving hardware has helped increase AMD’s professional graphics market share.
    • In December last year, Apple announced that it is using AMD’s dual FirePro professional graphics solutions in its new Mac Pro.
    • The deal could increase AMD’s professional GPU market share to 30% by the end of 2014.
  • Factors Responsible For Our $95 SAP Price Estimate
    Thu, May. 15 SAP Comment!

    Summary

    • We believe the company's management team has the capability to drive revenue growth and execute margin expansion through fiscal 2017.
    • Subscription-based deployments, including software solutions such as Business Suite and Business Warehouse, and the HANA in-memory database module, should resonate well with customers.
    • Margin targets are expected to be met thanks to lower cost of revenues and a realigned business structure to accommodate the shift to cloud offerings.
  • Netflix: The Impact Of The Recent Price Rise
    Wed, May. 14 NFLX 8 Comments

    Summary

    • Netflix recently raised the monthly price for its streaming service in the U.S. by $1.
    • We believe that, unlike in 2011, when abrupt price changes led to a loss of customers, the price increase won't impact the company’s subscriber growth.
    • Our analysis shows that Netflix can add roughly $500 million in annual incremental revenues in the U.S. alone by 2017 with this move.
  • Oracle Aims To Expand Cloud Footprint Through 'Customer 2 Cloud' Program
    Wed, May. 14 ORCL Comment!

    Summary

    • In its recently concluded Q3FY14, Oracle reported a 24% increase in quarterly revenues from its cloud business.
    • However, the company has lagged behind rival SAP AG in terms of cloud revenue growth.
    • Through its "Customer 2 Cloud" program, the company aims to accelerate customer migration from on-premise applications to its Oracle Cloud applications.
  • Texas Instruments: Here's Why The Company's Gross Margin Will Improve In The Future
    Wed, May. 14 TXN Comment!

    Summary

    • Higher revenues, combined with an improving product mix and better factory utilization, increased gross margin to 52.1% in 2013.
    • In Q1 2014, gross margin further improved to 53.9%.
    • The company believes that the analog and embedded segments offer long-term growth and less volatility compared to the past.
  • DISH Adds 40,000 Pay-TV Subscribers In The First Quarter
    Wed, May. 14 DISH Comment!

    Summary

    • The satellite TV company once again managed to post subscriber gains in an environment in which the pay-TV industry is losing subscribers.
    • DISH has benefited from its promotional offers, AutoHop DVR and the ongoing migration of subscribers from cable to satellite.
    • We believe these initiatives will continue to drive DISH's pay-TV operations in the near term.
  • China And India Crucial For Land Rover Growth
    Wed, May. 14 TTM Comment!

    Summary

    • China is the largest market for Tata's Land Rover unit, constituting one-fourth of net volumes.
    • Although the luxury business targeted by Tata represents a tiny portion of India's passenger vehicle market, the segment grew 15% last year.
    • We expect Land Rover to cross annual sales of 700,000 units by the end of the decade.
  • CBS Earnings Grow 7% Due To Higher Non-Advertising Income
    Wed, May. 14 CBS Comment!

    Summary

    • Content licensing and distribution revenues increased 6% to $1.07 billion compared to the prior year period. International content licensing grew by 22%.
    • Affiliate and subscription fees increased by 9% to $567 million compared to the prior year period, thanks to 19% growth in retransmission revenues and network affiliation fees.
    • CBS will see solid growth especially in the second half of 2014 driven by Thursday Night Football and higher advertising revenues due to the midterm elections.
  • Cisco: Another Challenging Quarter Due To Product Transitions, Emerging Market Weakness
    Mon, May. 12 CSCO 5 Comments

    Summary

    • Revenues are predicted to decline by 6-8% over the same period last year due to weakness in emerging markets and reduced spending by service providers.
    • Cisco faces a significant long-term threat from software-defined networking (SDN) gradually gaining in prominence and cutting into its margins.
    • However, we are encouraged by the strong initial bookings Cisco is seeing for new products.
  • Symantec's FY14: Expense Management Compensates Weak Revenue
    Mon, May. 12 SYMC Comment!

    Summary

    • For FY14, revenues declined 3.3% compared to FY13, primarily impacted by a sizable 19% reduction in license sales.
    • Despite the weak performance on the top line, the company managed to contain costs significantly.
    • Symantec has a plan in place to arrest declining sales and turn around its business performance.
  • Reviewing Adobe's Digital Marketing Offering
    Mon, May. 12 ADBE Comment!

    Summary

    • The digital marketing cloud makes up 20% of Adobe's estimated value and generated around $1 billion in annual revenues in 2013.
    • Adobe's marketing platform should continue to lead the digital marketing solutions market in the short term, where it enjoys strong brand recognition.
    • Adobe is aiming to increase its revenues from cloud-based marketing solutions by expanding in new geographies and vertical markets where it has a strong presence.
  • Why We Increased Our Price Estimate For Monster
    Fri, May. 9 MWW 2 Comments

    Summary

    • Although Monster's business has suffered over the last few years, recent developments suggests that it may have bottomed out, especially in the U.S.
    • Monster's buyout of Goazaik and TalentBin can help it become more data-centric, run efficient algorithms, and redesign its user interface to capture the talent acquisition market.
    • Our current price estimate for the company stands at $7.92, implying a premium of about 40% to the market price.
  • Professional Graphics, PC Gaming And Tegra Drive Nvidia's Growth During Its Latest Fiscal Quarter
    Fri, May. 9 NVDA Comment!

    Summary

    • PC gaming (both desktops and notebooks) grew at a robust rate in the quarter as gamers continued to buy high-end GPUs to play the latest PC games.
    • Accounting for 80% of the market, Nvidia remains the dominant player in professional GPUs.
    • With IBM, Dell and HP now selling Nvidia GPUs in their high-volume servers, the company expects large-scale data centers to be a significant source of growth.
  • Despite A Disappointing Performance, Pfizer Pins Its Hope On These Drugs
    Fri, May. 9 PFE 16 Comments

    Summary

    • The loss of patent exclusivity for major drugs continued to weigh on the company's overall revenue growth during the last reporting period.
    • Pfizer expects drugs such as Eliquis and Duavee, as well as the expected launch of an OTC version of Nexium, to add to incremental revenues this year.
    • With no significant competition in the market, Prevnar has the potential to make up for the company's previous revenue losses due to the expiration of several patents.
  • Why Cree Can Manage To Increase Its Gross Margins
    Fri, May. 9 CREE 1 Comment

    Summary

    • Higher LED volumes combined with lower-cost products, cost reductions and higher factory utilization will help increase Cree's overall gross margin.
    • LED penetration is expected to increase in the future and being one of the leading global LED manufacturers, Cree will benefit from the trend.
    • The company has a strong balance sheet, which gives it the ability to invest in growing its business and respond to new market opportunities.
  • DirecTV Continues To Add Pay-TV Subscribers In The U.S. And Latin America
    Thu, May. 8 DTV Comment!

    Summary

    • DirecTV posted good numbers for the first quarter, including 6% growth in revenues.
    • The macroeconomic situation in Latin America will impact the company's performance in the near term. However, U.S. operations will remain stable.
    • The company added 361,000 video subscribers in Latin America while it added 12,000 in the U.S.
  • AOL Earnings: Restructuring Lowers Profitability Even As Ad Revenues Soar
    Thu, May. 8 AOL Comment!

    Summary

    • AOL posted 8% year-over-year growth in total revenues for the quarter to $583.3 million.
    • Its net income declined by 64% year over year to $9.3 million due to restructuring and asset impairment charges.
    • As expected, much of the revenue growth for AOL came from the growth of programmatic platform across the third-party network.
  • Can Intel Gain Additional Share In The Mobile Market?
    Thu, May. 8 INTC 31 Comments

    Summary

    • Intel announced that it shipped 5 million tablet chips in the first quarter and is on track to reach a goal of shipping 40 million tablet chips in 2014.
    • If Intel meets its target of shipping 40 million tablet chips by the end of 2014, its market share would increase to approximately 15%.
    • LTE integration will enable Intel to make a deeper foray in the smartphone market.
  • TripAdvisor Posts Strong Results On Meta Improvements, Ups Guidance
    Thu, May. 8 TRIP 1 Comment

    Summary

    • The company's click-based advertising revenue increased by 16% year-on-year and accounted for 74% of total revenues in Q1.
    • Better quality leads have allowed TripAdvisor to increase its advertising rates.
    • The company's instant booking feature is expected to reach 100% of smartphone users in its most important markets by the end of this quarter.