Frank Burch was good enough to put together an extensive chart outlining what the different analysts are expecting from Nortel’s Q2 results, which come out on Friday.
We can clearly see that there is no real science to projecting Nortel's qtrs as they come.
The numbers for Q2 are quite varied among the analysts who are covering Nortel,in fact $268 million in revenue diffference or about 10 percent seperates the lowest revenue estimate to the highest.
If analysts covering NT do industry checks and supposedly have good insight to back up their estimates,then what gives for a 10 percent variance among their revenue estimates?
With the average 2nd qtr OM pegged at 2.7 percent,this means that NT has to average 9.3 percent operating margins for the second half of 2008,quite a hefty jump from the first half.
I guess Gus Papageorgiou's math has taken this breakdown into consideration- not too much of a stretch considering that Nortel hit close to 10 percent OM for Q4/07 .
Works fine for me.
BeenThereDunnThat
Please remember…these are the same analyst that blew lots of hot air into the tech bubble (with help from the industry leaders of course). I would rather trust cow-pie-bingo to predict the stock direction. Till Friday morning…when the Canadian media will take the results and use the lovely phrases “Beleaguered Nortel…still recovering from an Accounting Scandal…”. Mike Z could cow-pie pure gold and the Canadian media would still complain about the irregular shape.
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Siemens enterprise, Enterasys in $550M joint venture Enterasys reaches its billion-dollar goal, gains VoIP leadership
By Jim Duffy , Network World , 07/29/2008 Sponsored by: Enterasys has found its billion-dollar buy. The company will be combined with Siemens' Enterprise Communications group, of which a controlling interest was acquired this week by The Gores Group, the private equity firm that owns Enterasys. Gores will also include its SER Solutions call center software company in the joint venture.
The result will be a $5 billion firm with more than 1 million customers, 15,000 employees and a presence in 80 countries, according to a fact sheet on the Siemens Enterprise Communications site. Gores will own a 51% stake in the joint venture while Siemens retains 49% ownership.
Enterasys made no bones about a desire to grow significantly — $1 billion in revenue had been mentioned — in order to better compete with Ethernet switch market leader Cisco and new entrant Juniper.
Gores and Siemens invested approximately $550 million in the joint venture. The transaction is expected to close Sept. 30, pending regulatory approval.
The deal gives Enterasys, a maker of security-enabled LAN switches, a wealth of unified communications and VoIP infrastructure and applications. Siemens' HiPath and OpenScape unified communications offerings are among the leaders in that market, according to Enterasys CEO Mike Fabiaschi.
“This makes us a No. 3 or 4 player in VoIP,” Fabiaschi says. “Thirty-five percent of the time, if somebody's looking at a data network infrastructure, they're also looking at a VoIP or a video application.”
“Scale and brand were a big deal to a company like ours,” he adds. “Clearly, this accomplishes the scale and the brand. Siemens is considered a top 50 brand in the world. This is a home run for us.”
exnt
Predicting Nortel's quarters is like rolling dice. With so much deferred revenue, Sarbox accounting, and market changes, revenue is highly variable and may have little to do with current market conditions.
less
“A little more competition just got added to Nortel's markets.
…a $5 billion firm with more than 1 million customers, 15,000 employees and a presence in 80 countries…“
And here I was just enlightened to the fact that global corps were de facto history.
less
The downtrodden masses are responding to the vast global KKKongloms' “NT results” “leaked” to the “press” the morinng.
Stocks were down almost 17% in opening trading.
more
Oh Magic 8 ball, what doth thy foresee?
As for Analyst Bingo, who's our winner now that the results are in? Of 20 professionals, all armed with CFA and MBA titles and fancy Wall & Bay Street addresses to boot, we have a whopping…drumroll please…0.00% accuracy rate in projecting Nortel's earning. Round of applause for our expert financial prognosticators! Award for nearest miss is a tie between the Bear/Citi team and Merrill, who only missed the real EPS by 44%. As for the overall herd, they were only off by a factor of 8.
And what exactly is one expected to do with these projections?
puddintane
In the end much of a company's' fortune can still very well be influenced by the shallow stock-buying masses mad for cash; its not all secret society run shadow governments disguised as for-profit global corps.
He's never going to hurt financially, but Mike Z's ego must be smarting a bit.
What’s Ahead for Q2
Frank Burch was good enough to put together an extensive chart outlining what the different analysts are expecting from Nortel’s Q2 results, which come out on Friday.
Technorati Tags: Nortel