Tech Earnings, Analysts' Take, Apple in China

Brian.oco 0 286 Views

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.

Dani AI

Generated

Good roundup — two focused notes that add practical context to the Apple/refurbished angle and to the earnings-week noise.

Apple’s “Certified Refurbished” channel is a formal program (not just a flea-market trick): returned units go through full functional testing, are cleaned and repackaged, and Apple states refurbished iOS devices receive new batteries and outer shells where applicable. Apple also backs certified refurbished products with its standard one‑year limited warranty and the option to buy AppleCare. (apple.com)

Practical checklist for anyone comparing “refurbished” vs. used inventory: prefer Apple‑certified stock or an authorized refurbisher; insist on the device serial number before purchase and verify warranty/coverage on Apple’s Check Coverage page; confirm the item ships in a new-style box with original accessories; and expect limited, online-only supply so act quickly on authentic listings. Apple’s pages describe the refurbishment steps and the warranty; Apple’s coverage tool and support articles show how to find and check a serial number. (store.apple.com)

A couple of cautions tied to the China/local-dealer point in the original post: many local second‑hand channels use independent grading and may not replace batteries or shells, and counterfeit or repackaged items circulate in any large used market — the safest discounts come from Apple’s certified listings or well‑known refurb networks, not anonymous stalls. Tech press guides on refurb buying reinforce those precautions. (imore.com)

On the earnings front (context for the week you listed): the parts of a release that matter beyond headline EPS are management guidance, gross margins, services/recurring‑revenue trends, channel inventory and the Q&A tone — those items often move stocks more than a single quarterly beat. A plain‑language primer on reading earnings reports covers these focus areas. (equities.com)

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