This page is temporarily not available. Please check later as it should be available shortly. If you have any questions, please email customer support at firstname.lastname@example.org or call 800-767-3771 ext. 9339.
For Immediate Release
Chicago, IL – September 25, 2012 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include AT&T Inc. ( T - Analyst Report ) , Apple Inc. ( AAPL - Analyst Report ) , Verizon Communications Inc. ( VZ - Analyst Report ) , Sprint Nextel Corp. ( S - Analyst Report ) and Vodafone Plc ( VOD - Analyst Report ) .
Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=5513
Here are highlights from Monday’s Analyst Blog:
AT&T Leads iPhone 5 Sales
The second-largest U.S. mobile service provider AT&T Inc. (
- Analyst Report
is dominating the market for Apple Inc.’s (
- Analyst Report
iPhone 5 sales. The company saw an astounding demand for the new iPhone, despite two of its rival carriers also offering the product.
According to the latest study from ComScore, AT&T leads the pre-orders for the hot iconic device with about 68% of total online sales in the first three days. This records the best order ever received by AT&T for the iPhones. The other two major rivals – Verizon Communications Inc. ( VZ - Analyst Report ) and Sprint Nextel Corp. ( S - Analyst Report ) – accounted for just 24% and 8% share of iPhone 5 sales, respectively.
AT&T had been the exclusive provider since 2007, when the first iPhone was launched. However, this uniqueness was lost to the wireless kingpin Verizon Wireless, a joint venture between Verizon Communications and Vodafone Plc ( VOD - Analyst Report ) , in February last year. Despite this loss, AT&T made a new record for the iPhone 4S in October last year and received more than 200,000 preorders within 12 hours of the start of booking.
When compared to the aforementioned 68% share of iPhone 5 sales, AT&T received merely 48% of pre-orders for iPhone 4S in the first three days and was followed by 35% for Verizon and 17% for Sprint. This suggests that though AT&T is behind Verizon in deploying 4G LTE services needed for iPhone 5, the existing customers, who are eligible for upgrades, are boosting demand for the new product.
Going by the iPhones’ track record, we expect AT&T to gain more subscribers from the new iPhone 5 and consequently will be raking in higher revenues. While iPhones are offering a strong growth momentum, the related high-marketing cost is hurting AT&T’s earnings. The company now has to pay $100 extra per phone to Apple, when compared to previous iPhone 4S, in the form of subsidy. Thereby, this lofty subsidy of $400 per iPhone 5 will be dilutive to the company’s earnings for the next several quarters.
According to several analysts, AT&T’s wireless EBITDA margin would decline from 45% in the second quarter to 40.8% in the third and then 35.7% in the fourth quarter. As a result, 3 out of 27 analysts have revised the third quarter estimates downward over the last week. The Zacks Consensus Estimate fell by a penny to 63 cents, representing only 4.01% year-over-year growth.
We are maintaining our long-term Neutral recommendation on AT&T. The company retains the Zacks # 3 (Hold) Rank for the short term (1–3 months).
Want more from Zacks Equity Research? Subscribe to the free Profit from the Pros newsletter: http://at.zacks.com/?id=5515.
About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today: http://at.zacks.com/?id=5517
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leon Zacks. As a PhD from MIT Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at http://at.zacks.com/?id=5518.
Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Follow us on Twitter: http://twitter.com/zacksresearch
Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts
Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.
Zacks Investment Research
800-767-3771 ext. 9339
Please login to Zacks.com or register to post a comment.