Wedbush Cuts Price Target on Polycom (PLCM), Good Buying Opp for Long-Term Investors
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Price: $12.47 --0%
Rating Summary:
2 Buy, 12 Hold, 3 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
2 Buy, 12 Hold, 3 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Wedbush is reaffirming its Outperform rating on shares of Polycom (NASDAQ: PLCM), but is reducing its price target from $28 to $23 due to poor Q3 results and weak Q4 guidance.
The company reported EPS of $0.26 with $379 million in revenue for the quarter, below the firm's estimates of $0.27 and $388 million. Sales also came in below guidance of $387-$391 million. The firm notes that the miss was due to the macro and execution issues in North America.
Management released its Q4 sales guidance at $398-$402 million, below the consensus of $417 million and the firm's original estimate of $418 million. Wedbush is cutting its Q4 EPS and revenue estimates from $0.33 and $417.9 million to $0.29 and $400.1 million.
Due to weaker than expected quarterly results and a poor outlook, Wedbush is lowering its FY11 and FY12 EPS estimates from $1.11 and $1.40 to $1.05 and $1.25. Revenue for both years is now forecasted to be $1.49 billion and $1.67 billion.
An analyst at Wedbush comments, "We continue to believe Mr. Miller will deliver improvement over time but, in the interim, management will have the opportunity to restore confidence with investors at their analyst day on November 7th. The bottom line, in our view, is that the miss, a reset of expectations and attractive valuation creates an opportunity for long-term investors to own a solid company which continues to transform itself to capture new communications opportunities."
For more ratings news on Polycom click here and for the rating history of Polycom click here.
Shares of Polycom closed at $21.83 yesterday.
The company reported EPS of $0.26 with $379 million in revenue for the quarter, below the firm's estimates of $0.27 and $388 million. Sales also came in below guidance of $387-$391 million. The firm notes that the miss was due to the macro and execution issues in North America.
Management released its Q4 sales guidance at $398-$402 million, below the consensus of $417 million and the firm's original estimate of $418 million. Wedbush is cutting its Q4 EPS and revenue estimates from $0.33 and $417.9 million to $0.29 and $400.1 million.
Due to weaker than expected quarterly results and a poor outlook, Wedbush is lowering its FY11 and FY12 EPS estimates from $1.11 and $1.40 to $1.05 and $1.25. Revenue for both years is now forecasted to be $1.49 billion and $1.67 billion.
An analyst at Wedbush comments, "We continue to believe Mr. Miller will deliver improvement over time but, in the interim, management will have the opportunity to restore confidence with investors at their analyst day on November 7th. The bottom line, in our view, is that the miss, a reset of expectations and attractive valuation creates an opportunity for long-term investors to own a solid company which continues to transform itself to capture new communications opportunities."
For more ratings news on Polycom click here and for the rating history of Polycom click here.
Shares of Polycom closed at $21.83 yesterday.
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