VMware EYES EMC Corp. and 4 Chip and Big Data Stocks on the Move
Intel Corporation (NASDAQ:INTC) shares see a boost following its earnings report which minimized fears of a more serious downturn, but a few analysts still believe the company is too optimistic. The shares traded up $0.82 (3.23%) recently at $26.20.
Broadcom Corp. (NASDAQ:BRCM), Irvine, Calif., was assigned a patent (8,225,087), which was developed by Mark L. Buer, Gilbert, Ariz., for a “system and method for control of security configurations.” The shares traded up $0.94 (3.18%) recently at $30.54.
QUALCOMM Incorporated (NASDAQ:QCOM) is expected to report Q3 earnings following market close on Wednesday, July 18, via a conference call at 4:45 pm ET. The consensus estimate is 86c for EPS and $4.68 billion for revenue, according to First Call. The anticipated earnings announcement will be an opportunity to build upon positive earnings momentum over the past three quarters. The guidance for Qualcomm was for an EPS of 83c-90c on $4.45-$4.85 billion in revenue. ThinkEquity anticipates that Qualcomm will beat June quarter estimates and stays comfortable with its 88c/$4.75 billion estimates. The firm’s forecast assumes QTL royalty sales totaling $1.5 billion based on a $45.9 billion royalty base, or an 11 percent quarter-over-quarter decrease, pushed by the March industry sell-in of 221 million units at a $208 ASP, CT sales of $3.0B driven by 148M chip units at ~$20 ASP and 19% QCT EBIT margins, which the firm sees as depressed due to the company’s increased 28nm spend. The iPhone 5, 28nm loosening, and Windows 8 are expected to be positive multi-quarter catalysts for December an more. The shares traded up $1.44 (2.65%) recently at $55.90.
EMC Corporation (NYSE:EMC): VMware (NYSE:VMW) who provides virtualization-based cloud infrastructure solutions, is moving after EMC (NYSE:EMC) named COO Pat Gelsinger as new CEO, beginning September 1, 2012. The current CEO of VMware will remain as “technology strategist” and board member. Gelsinger was at Intel for 30 years before joining EMC, and possesses “unique expertise in the x86 architecture and ecosystem underpinning the vast majority of virtualized environments today,” VMware said. EMC holds a majority stake in VMware, and it a not earlier today, Wells Fargo claimed that the new CEO appointment paves the way for a merger between the EMC and Intel. The firm predicts that the progression toward such a merger will help the stock advance, and it keeps an Outperform rating on the shares. Also, the VMware reported a preliminary second quarter revenue of $1.12 billion, compared to analysts’ consensus estimate totaling $1.1 billion, and it announced a 32 percent preliminary second quarter operating margin guidance, compared to its previous 30.25 percent to 31.25 percent. During mid-morning trading VMware saw a 9.38 percent increase, or$7.53. The shares traded up $2.16 (9.42%) recently at $25.08.
VMware, Inc. (NYSE:VMW) (VMW +10.4%) and EMC (EMC +9.3%) kept rallying following the early announcement of its Q2 results (I,II), to add to their management shuffle news. ThinkEquity believes that shakeup is evidence that VMware has a pivotal role in molding the future of EMC. Derrick Harris of GigaOm mentions that new VMware CEO Pat Gelsinger seems more focused with nuts-and-bolts cloud infrastructure solutions than the leaving chief Paul Maritz, who was interested in applications and led some to think the company had lost its roots. The shares traded up $9.69 (12.07%) recently at $89.98.
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