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August 2019

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The Country Caller discusses recent quarter earnings forecasts of Qualcomm and AT&T before their respective announcements later in the evening today

After the market closes on Wednesday, January 25, QUALCOMM, Inc. (NASDAQ:QCOM) and AT&T Inc. (NYSE:T) will announce their earnings for the first quarter of fiscal year 2017 (1QFY17) and 4QFY16, respectively. While the companies have published mixed financial results in the previous quarters, forecasts suggest that both QCOM and T are likely to exceed analysts’ predictions on the top line whereas QCOM is also expected to outperform on bottom line.

Qualcomm, Inc.

Wall Street analysts have given Qualcomm consensus earnings per share (EPS) projection of $1.19. While this is expected to result in a decline of 7% quarter-over-quarter, it will also lead to growth of about 23% on the bottom line. On the other hand, Earningswhispers.com expects the company to exceed both Street expectations and QCOM’s 1Q EPS outlook of $1.12-1.22, with its EPS estimate of $1.24.

Reportedly, Qualcomm’s previous quarter revenues were published at $6.2 billion. Interestingly, this is similar to what Estimize.com predicts to be announced during the upcoming quarterly announcements. Moreover, Street analysts also expect the $70.93 billion business to report $6.12 billion net sales, well within QCOM’s Q1 revenue guidance of $5.7-6.5 billion. The California-based company also witnessed about $5.8 billion net sales for the prior year quarter.

AT&T Inc.

The analysts have also upheld AT&T’s consensus EPS estimate at 66 cents. This is consistent with the expectations held by analysts at Earningswhispers.com. However, the number suggests a decline of about 11% QoQ on bottom line as T reported 74 cents in EPS during the last quarter. Additionally, the company’s 4QFY15 EPS came in at 63 cents.

The $257.36 billion company is also expected by Wall Street to publish $42.1 billion revenue this season, consistent with 4QFY15. This is slightly lower than Estimize.com’s top line estimate of $42.17 billion. Furthermore, the Texas-based company reported $40.9 billion revenue for 3Q.

Tesla Motors Inc is refreshing Model S nosecone and adding a new design, as it prepares to increase the vehicle’s price for the first time

Tesla Motors Inc. (NASDAQ:TSLA) has kept the price of its best-selling luxury sedan, the Model S, unchanged since it hit the roads in 2012. The vehicle, which is headed into its fourth production cycle, is expected to see its first price hike shortly.

While experts have been anticipating the electric vehicle (EV) maker to offer some updates in return, CNET has confirmed that the company is indeed bringing in a series of updates to the premium sedan as early as this week. Tesla insiders told CNET that the company aims to both add some more luxurious features and simplify the vehicle’s manufacturing process.

It is essential for the company to make its vehicle’s complicated processes easier, as it plans to become a large-scale original equipment manufacturer (OEM). Meanwhile, it also needs to maintain its strong hold in the American and European markets, amid increasing popularity of its mass-market model, the Model 3. Morgan Stanley’s Adam Jonas has claimed that the mass-market sedan could outshine its predecessor, eventually leading to cannibalization of the world’s most successful EV.

The reports stated that the Model S’s front-end design would be refreshed. The nosecone has been altered and it is not that of the Model 3 or the Model X, although it will make the vehicle’s frontal appearance similar to them. New LED headlights will also be added to give it a cleaner look and new paint colors will be included in the Model S design studio.

Additionally, similar to the premium SUV, the Model S will have ventilated front seats and it will get some additional compartments for interior storage, such as door pockets. Additionally, the automaker is eliminating the production parts of all the previous Model S versions now. With these offers, the sources said that Tesla will increase the prices of its award-winning vehicle, but they didn’t mention by how much.

Last week, a TMC member posted an image of Model Ss with protective tape on the front and rear bumpers, parked outside the Fremont factory. Although the image is not clear, one could tell the nose has been altered.

The level of Tesla’s innovation cannot be overstated. The new design and features could give a new life to the Model S and bring on a degree of separation from its mass-market successor.

Budding fitness startup KFit acquires Groupon’s Indonesian unit, in a bid to expand its global reach

The provider of online deals, Groupon Inc. (NASDAQ:GRPN), has faced increasing pressure from its shareholders in the past three months, as the company witnessed a 26% decline in its share price, right after its first quarter earnings call. The ecommerce company has disclosed its intention of selling its Indonesian business to a budding fitness startup, KFit. While much of the deal’s financial implications remain a secret for now, under the deal Groupon will become a shareholder of the company.

KFit was founded by Joel Neoh back in April 2015 to provide customers unlimited access to fitness studios and gyms for a pre-defined monthly fee. The 1-year-old startup plans to expand its reach in the Indonesian market with the aforementioned acquisition and make use of Groupon’s strong local platform which is home to over thousands of merchants and a million subscribers. Furthermore, Groupon expects the entire acquisition to close by the end of the third quarter of 2016.

KFit CEO Joel Neoh shared his thoughts on the strategic merger with the online deal platform as he quoted: “Indonesia represents an untapped opportunity for us and serves as a natural expansion of our regional footprint in Southeast Asia. The combination of Groupon Indonesia’s established presence and KFit’s experience in building a mobile-first platform will propel us in a high-growth local commerce market, further accelerated by increasing mobile penetration.”

Groupon posted mixed financial results for its first quarter of 2016 in April. The company reported adjusted loss per share of one cent, compared to a consensus estimate of two cents. Revenues came in at $732 million, surpassing the Street’s expectations of $718.3 million. Groupon’s gross billings also slumped 5% to $1.47 billion, compared to same period last year.

Following its weak quarterly performance, analysts at RBC Capital cut their rating on the stock from Sector Perform to Underperform, highlighting the “deteriorating fundamentals” in the March quarter. The research firm also lowered its 12-month price target on the stock from $4 to $3. Groupon stock has now slipped more than 42% over the last 12 months, compared to the NASDAQ Composite Index which fell nearly 2.5% through the same period.