Back to top

Analyst Blog

On Feb 13, 2014, we issued an updated research report on Polycom, Inc. (PLCM - Analyst Report). The company continues to show strong signs of improvements as its Unified Communications Personal Devices segment (62% of total revenue) reported solid global growth.

Polycom has delivered positive earnings surprise in three quarters last year, with an average beat of 141.67%. The company reported improved financial results for the fourth quarter of fiscal 2013 with both the top and the bottom line beating the respective Zacks Consensus Estimate.

Moreover, the company’s cost-control policy in fiscal 2014 is likely to improve margins. Polycom is currently undergoing a transition from a hardware-centric to a cloud and software-centric business model. It has also made several product enhancements for its popular RealPresence platform, which we believe will act as tailwinds for the company going forward.

Polycom extended its video conferencing technology agreement with Microsoft, primarily targeting the enterprise unified collaboration market. The company is one of the most vital business partners of Microsoft and provides hardware for Microsoft’s video chat and VoIP software, Lync, which can be used to replace traditional phone systems. Lync-compatible voice devices, with double-digit growth rate, have become a major growth driver for Polycom.

Polycom had a low debt-to-capitalization ratio of 0.20 at the end of 2013. Moreover, Polycom purchased $400 million shares under its buy-back program by the end of fourth-quarter 2013.

Polycom currently carries a Zacks Rank #3 (Hold).

Stocks That Warrant a Look

Other stocks worth considering in this sector include ShoreTel, Inc. (SHOR - Snapshot Report), Harris Corp. (HRS - Analyst Report) and Nokia Corp. (NOK - Analyst Report). ShoreTel currently carries a Zacks Rank #1 (Strong Buy) while Harris and Nokia have a Zacks Rank #2 (Buy).

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
SYNAPTICS I… SYNA 78.11 +8.14%
CENTURY ALU… CENX 19.88 +5.74%
GREEN PLAIN… GPRE 39.41 +5.12%
PILGRIM'S P… PPC 28.82 +3.08%
THE PANTRY… PTRY 18.41 +2.79%