Tech Earnings, Analysts' Take, Apple in China

Brian.oco 0 Tallied Votes 268 Views Share

It’s earnings week in Silicon Valley, even as the world is focused on the historic events in Washington today. Some heavyweights are on the financial reporting docket, including Google Inc., eBay Inc., Apple Inc. and Advanced Micro Devices Inc.

Here is a quick run-down of what we can expect this week . . .

Apple (AAPL): Apple, with a new sheriff in town, should report earnings of $1.38 a share on $9.76 billion in revenue.

eBay (EBAY): eBay, which did relatively well in the holiday season, should report earnings of 39 cents a share on $2.12 billion in revenue.

Advanced Micro Devices (AMD): AMD is set to cut another 900-1,000 jobs, and as I mentioned yesterday, is cutting prices left and right. Analysts expect AMD to report a loss of 54 cents a share on $1.23 billion in revenue.

Google (GOOG): With rumors of more takeover activity involving Google, Microsoft, and Yahoo, Google is expected to report earnings that same day of $4.96 a share on $4.12 billion in revenue.

Another victim of the economy is Logitech International, which came out yesterday with news that it plans to cut 600 jobs. That after a lousy third-quarter and a bleak 2009 forecast. According to company statements, Logitech plans most of its job cuts in the fiscal fourth quarter, sells a lot of its computer peripheral components to big-box retailers, so the collapse of Circuit City isn’t going to help the company in the short term.

Elsewhere, Wall Street analysts have awoken from their long-weekend slumber and have come out with some analysis on key technology stocks. Let’s have a look:

Motorola (MOT)) – Has been upgraded at Goldman Sachs to buy from neutral based on valuation. Expect weak Q1 guidance when company reports in early February. Price target raised to $7 from $4.50.

Palm (PALM) -- Has been downgraded to neutral at JP Morgan and price target increased to $7.50 from $7.

Research in Motion (RIMM) – Has been upgraded at RBC to outperform from sector Perform. $75 price target.

Teradyne (TER) – Has been downgraded at Oppenheimer to perform. $5 price target.

MEMC Electronic (WFR) – Has been downgraded at UBS to Sell from Neutral. Lowered target price to $14.50 from $20.

More news on Apple, as well. With Steve Jobs on the sideline, Apple is reporting that it’s going into China to sell second-hand products. Now, I’m Apple to the core (sorry) but when I go into my local dealer, you just can’t get used iPods or laptops. You have to go on eBay or some other online trading site to get used Apple products, and you really can’t be absolutely sure what you’re getting.

But the China deals are pretty good. According to Reuters, Apple has a new store in China that is offering discounts of up to 22 percent on various refurbished products. Apple said on its Web site that the products had been previously sold, then returned, and had undergone quality tests, Reuters reported.

Reportedly, Apple was featuring such items as an iPod shuffle for 308 yuan ($45) and an iMac for 14,000 yuan.

Not bad - if you want to fly across the world for a cheaper iPod.