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TD’s Take on Q4, 2007
By Mark Evans | March 19, 2007
In a research note written before Nortel’s conference call this morning, TD Newcrest analyst Chris Umiastowski said Nortel’s guidance for 2007 will likely disappoint some investors because it is below consensus. Given TD’s outlook was already below consensus, Umiastowski said TD will not be making any changes to its financial model until after the conference call. In terms of Q4, he said gross margins of 39.8% instead of “slightly over 40%” as previously estimated translate into a gross profit miss of $8-million. The EPS of $0.04 was far below TD’s $0.20 estimate, mostly because the company took a charge of $58 million from “minority interests” (probably arising from LG’s portion of the profit from the LG-Nortel joint venture).
Topics: Analyst Coverage |