Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

Why Palm's First-Quarter Beat Isn't Enough


It still lost. And what about next year?


There was a new guy on my commuter bus and I swear he looked just like Danny Bonaduce from the Patridge Family. I better stop right there -- I'm dating myself.

Asian stocks ended in negative territory. The Hang Seng and the Nikkei were down 0.67% and 0.7%, respectively. European stocks, however, were in positive territory earlier this morning. And here in the US, we're currently trading higher.

Here's what I'm seeing on this fine Friday morning:

Palm, Inc (PALM):
Excluding items, the company known for its Pre smartphones lost a dime a share in its first quarter. That was much better than the $0.25 loss analysts had been looking for.

Some thoughts:

1. The beat is good. But a dime-a-share loss isn't something I'll break out the fancy china for.

2. This line in the release caught my eye:

"Due to the timing and scale of expected product launches in Palm's second fiscal quarter compared to those which took place in Palm's first fiscal quarter, and due to lower anticipated demand for legacy products, the company expects non-GAAP Adjusted Revenues for its second quarter of fiscal year 2010 to be between $240 million and $270 million."

The estimate I'm seeing is for a smidge over $346.8 million.

3. That's a huge profit it's expected to generate next year. (Note sarcasm: Next year's estimate is $0.42.)

4. The firm intends to sell 16 million of its shares. That suggests that management thinks the stock is pretty fairly valued.

Texas Instruments (TXN):
The company announced last night after the close that it intends to up its quarterly dividend from $0.11 to $0.12.

My thoughts:

1. I realize that sounds like the same amount of change you can find under your couch cushion, but it's actually big coin. If you really think about it, the company could have saved that dough or used it in any number of other ways. It's a good sign that it's willing to return it to shareholders.

2. Even beyond that, I continue to like this company. After all, estimates have been on the rise and, as I pointed out in Ticker Shock: Why Texas Instruments Shouldn't Be Ignored, it upped its third-quarter outlook, too.

3. I don't know how many folks will be paying attention given that we're headed into a weekend. But I feel the shares deserve a little goose.

< Previous
No positions in stocks mentioned.

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.

Featured Videos