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Factors Responsible For Our $95 SAP Price Estimate
- 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
- 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
- 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
- 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
- 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
- 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
- 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
- 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
- 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
- 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
- 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
- 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
- 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
- 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
- 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
- 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?
- 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
- 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.
Yahoo Eyes Big Bucks As Alibaba Files For IPO
- Yahoo's stock has performed exceedingly well over the past two years, primarily due to its investment in Alibaba.
- We conservatively estimate the value of Alibaba at $95 billion.
- In this article, we will briefly discuss Alibaba's business and the potential upside for Yahoo's investment.
Higher ARPU And Customer Base Growth Prospects Boost Valuation To $31 For Constant Contact
- Compared to previous quarters on a sequential basis, Constant Contact's revenue growth rate in Q1 2014 was higher.
- Gross margins expanded significantly for the quarter, reaching 72.5% compared to 70.8% in Q1 2013.
- Various drivers contributed to the company's strong Q1 performance.
First Solar Earnings Driven By Campo Verde Project, Lower Costs
- First Solar's latest results were aided by revenue recognition on its large-scale solar power plants in North America as well as lower balance of system and panel manufacturing costs.
- This quarter's strong performance also was partly attributable to the fact that the company recognized 100% of the project revenue from its 139 megawatt Campo Verde project in southern California.
- First Solar indicated that it has been able to expand its pipeline of potential business opportunities to around 12.2 gigawatts, with around 1.25 GW of the deals in the mid-to-late stages.
EA And Activision Beat Expectations As Digital Revolution Continues
- EA and Activision beat market expectations for the March quarter with strong performances from core franchises and expansion into the digital domain.
- Digital expansion is a priority for both Electronic Arts and Activision as they head into the new era of gaming.
- The popularity of new consoles suggests that a sales revival is likely around the corner, and both EA and Activision have strong lineups to capitalize on that trend.
- Akamai's Solid Q1 Performance Offset By Near-Term Margin Concerns
- Q1 Earnings Preview: Dish Network's Pay-TV Subscriber Trend In Focus
- Nvidia's Earnings Preview: PC Gaming, Tesla And Tegra Processors Will Drive Growth
- Market Is Valuing LinkedIn More Realistically Now
- Electronic Arts And Activision Earnings Preview: Digital Streams Should Lead To Margin Expansion
- First Solar Earnings Preview: Large U.S. Projects To Drive Results
- AOL Earnings Preview: Growth In Ad Tech Platform To Take Center Stage
- Motorola Posts Disappointing Q1 On Government Slowdown, Narrowbanding Impact
- Tesla Expands Into China, But Should Only Be A Small Player In The Luxury Segment
- Samsung's Profits Stagnate As Smartphone Saturation More Than Offsets Chipset Recovery