Needham & Company on Acme Packet (APKT); Uncertain Growth and Anemic Near-Term Earnings Keep Us Sidelined
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Price: $29.24 --0%
Rating Summary:
3 Buy, 15 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 33 | Down: 45 | New: 4
Rating Summary:
3 Buy, 15 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 33 | Down: 45 | New: 4
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Needham & Company maintains a 'Hold' on Acme Packet (NASDAQ: APKT).
Analyst, Richard Valera, said, "The near-term Acme story continued to unravel on its 2Q call as the company slashed its 2012 guidance—now looking for revenue down 11-12% vs. a prior heavily 2H-weighted expectation for 10% growth. The main culprit appears to be significant pause from NA service providers (namely AT&T (NYSE: T) and Verizon (NYSE: VZ)), but the company’s enterprise growth forecast was also cut in half to 20% from 40%. For its part, management is convinced the pause is temporary and that an enormous opportunity lies ahead in VoLTE and IMS after carriers eventually work out their architectural decisions and start implementing. Accordingly, rather than cut expenses, they are increasing investment. Given the lack of visibility to this turn and with shares trading at ~15x our cash-adjusted ’13 EPS, we retain our Hold."
FY12 EPS estimate cut from $0.70 to $0.47 and FY13 from $0.97 to $0.57. FY12 revs lowered from $300M to $272M and FY13 from $356.6M to $311M.
For an analyst ratings summary and ratings history on Acme Packet click here. For more ratings news on Acme Packet click here.
Shares of Acme Packet closed at $16.19 yesterday.
Analyst, Richard Valera, said, "The near-term Acme story continued to unravel on its 2Q call as the company slashed its 2012 guidance—now looking for revenue down 11-12% vs. a prior heavily 2H-weighted expectation for 10% growth. The main culprit appears to be significant pause from NA service providers (namely AT&T (NYSE: T) and Verizon (NYSE: VZ)), but the company’s enterprise growth forecast was also cut in half to 20% from 40%. For its part, management is convinced the pause is temporary and that an enormous opportunity lies ahead in VoLTE and IMS after carriers eventually work out their architectural decisions and start implementing. Accordingly, rather than cut expenses, they are increasing investment. Given the lack of visibility to this turn and with shares trading at ~15x our cash-adjusted ’13 EPS, we retain our Hold."
FY12 EPS estimate cut from $0.70 to $0.47 and FY13 from $0.97 to $0.57. FY12 revs lowered from $300M to $272M and FY13 from $356.6M to $311M.
For an analyst ratings summary and ratings history on Acme Packet click here. For more ratings news on Acme Packet click here.
Shares of Acme Packet closed at $16.19 yesterday.
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