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Canaccord Genuity Maintains a 'Hold' on Novatel (NVTL) Solid Q4/11; Product Transition Uncertainty Leads to Soft Guidance

February 23, 2012 9:45 AM EST Send to a Friend
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Canaccord Genuity maintains a 'Hold' on Novatel (NASDAQ: NVTL) price target of $4.00.

Analsyt, T. Michael Walkley, said, "Novatel reported Q4/11 sales of $110M and pro forma EPS of $0.05 versus our $113M/($0.05) estimates. Improved operating expenses led to the stronger EPS results. Q1/12 sales guidance of $85M-$110M was below our $112M estimate with the wide range reflecting the uncertain timing of a key MiFi product launch for Verizon (NYSE: VZ). While we anticipate steadily improving sales for mobile computing during 2012 and a strong H2/12 ramp for M2M sales, we maintain our rating."

"...we are lowering our pro forma 2012 EPS estimate from $0.33 to $0.14 due to our lowered mobile computing estimates. We believe Novatel should post solid earnings growth exiting 2012, and we introduce our 2013 estimate of $0.30."

For an analyst ratings summary and ratings history on Novatel click here. For more ratings news on Novatel click here.

Shares of Novatel closed at $3.27 yesterday.




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