Technology Sector Review: Apple Built in Brazil, Facebook Files IPO Paperwork
Apple Inc. (NASDAQ:AAPL): Foxconn is looking to build five more factories in Brazil to produce liquid crystal displays for future products from Apple (NASDAQ:AAPL), the Boy Genius Report says, citing Brazilian news outlet Folha. Each new factory could employ about 1,000 workers. In addition to building Apple products, the factories will also manufacture notebooks and batteries.
The shares closed at $456.19, down $0.29, or 0.06%, on the day. Its market capitalization is $425.34 billion.
Microsoft Corporation (NASDAQ:MSFT): By filing its IPO paperwork today, the regulatory review on Facebook’s offering will be over and shares will likely begin trading before the end of June, meaning the six-month lock-up period will expire before the end of the year, when the capital gains tax may grow to as high as 25% from its current 15%, the New York Post noted.
The shares closed at $29.89, up $0.36, or 1.22%, on the day. Its market capitalization is $250.80 billion.
QUALCOMM, Inc. (NASDAQ:QCOM) is expected to report Q1 earnings after the market close on Wednesday, February 1, with a conference call scheduled for 4:45 pm ET. The consensus estimate is 90c for EPS and $4.58B for revenue, according to First Call. Guidance for Q2 will be watched closely, given that results for the December quarter are largely priced into the shares. On Nov. 11, management reaffirmed prior Q1/FY12 guidance. Guidance for Q1: EPS 86c-92c on $4.35B-$4.75B in revenue. For FY12: EPS $3.42-$3.62, on $18B-$19B in revenue. FY12 non-GAAP R&D & SG&A expenses were guided to be up 15% sequentially. CLSA expects slight upside to Qualcomm’s Q1 and outlook. The firm believes chipset strength at Apple (NASDAQ:AAPL) more than offset weaker trends at Research in Motion (NASDAQ:RIMM) and HTC — both are Snapdragon customers — as well as slower Windows phone sell-through at Nokia (NYSE:NOK). Looking into the next few quarters, Qualcomm should benefit from accelerating LTE adoption in the U.S., strong smartphone growth in China, and potential gains in WiFi. Consensus for Q2: 89c on $4.51B in revenue. Consensus for FY12: $3.59 on $18.48B in revenue. Most of the analysts on the Street prefer to remain on the sidelines as they contend that most of the positives on Qualcomm’s stock have already been reflected in the current valuation — thus leaving little scope for an upside.
The shares closed at $59.56, up $0.74, or 1.26%, on the day. Its market capitalization is $100.52 billion.
IXYS Corporation (NASDAQ:IXYS) reported Q3 revenue of $80M and the one analyst estimate for Q4 is $96.5M.
The shares closed at $11.76, down $1.98, or 14.41%, on the day. Its market capitalization is $366.67 million.
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