MORGAN KEEGAN RAISES ESTIMATE FOR RESEARCH IN MOTION
Morgan Keegan analyst Tavis McCourt says Research In Motion's (RIMM) third quarter results were at high end of pre-released ranges, with revenues rising 66% year-over-year to $2.78 billion, $0.83 non-GAAP EPS.
McCourt says fourth quarter guidance is slightly better than he anticipated with EPS at $0.87 (midpoint) on much higher revenue growth, albeit with much lower gross margins than expected.
He raises $3.25 fiscal year fiscal year 2009 (February) operating EPS estimate to $3.37 to reflect higher-than-expected third quarter and increased fourth quarter estimate; he keeps $3.61 fiscal year 2010 forecast. He notes RIMM trades (pre-open) at 11 times forward p-e as the company expects to grow EPS, take share, and begins a product upgrade cycle. He keeps outperform opinion on the stock.
PACIFIC CREST KEEPS OUTPERFORM ON ORACLE
Pacific Crest analyst Brendan Barnicle says Oracle's (ORCL) second quarter maintenance revenue is adversely affected by forex; as a result, maintenance revenue down sequentially, but up 21% on constant-currency basis.
Barnicle finds the company's third quarter guidance credible, but he's taking a more conservative approach to the fourth quarter. He cuts $1.49 fiscal year 2009 (May) EPS estimate to $1.45, $1.67 fiscal year 2010 to $1.66.
He says despite the tremendously challenging economic and currency environments and results, guidance is largely in line with estimates. He says now that the risk of its second quarter is behind us, ORCL seems like one of best stocks in software. He has a $30 12-month price target.