For Immediate Release
Chicago, IL – November 11, 2009 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: TRW Automotive (TRW), Dish Network Corp. (DISH), TiVo Inc. (TIVO), DirecTV (DTV) and AT&T (T).
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Here are highlights from Tuesday’s Analyst Blog:
TRW Posts Robust Profit
TRW Automotive (TRW) has revealed a staggering rise in profits to $76 million or 68 cents per share in the third quarter ended Oct. 2, 2009, from a net loss of $22 million or 22 cents per share in the prior-year quarter.
The profit was also significantly higher than the Zacks Consensus Estimate of 14 cents per share. The Michigan-based manufacturer of advanced technology products and services for the automotive markets commended its restructuring and cost containment actions for its impressive rise in profit.
Operating income for the quarter went up to $165 million from $44 million in the prior-year period. Apart from restructuring and cost containment actions, this was driven by lower raw material prices and favorable non-recurring supplier and customer settlements.
During the quarter, TRW continued to reduce its salaried workforce by an additional 200 employees, which brings the total salaried reductions to about 3,000 since the commencement of programs last year.
Dish Network’s Q3 Disappoints
Satellite TV major Dish Network Corp.’s (DISH) third-quarter earnings slipped 12.3% on higher subscriber-related costs and litigation expenses associated with TiVo Inc. (TIVO). The company reported earnings of $80.6 million, or 18 cents per share, compared to $91.9 million, or 20 cents in the year-ago quarter and well behind the Zacks Consensus Estimate of 43 cents.
The Englewood, Colorado-based company said total revenue declined 1.5% to $2.89 billion, from $2.94 billion in the year-ago period. The decrease was caused by a 0.8% contraction in subscriber related revenue to $2.86 billion as average monthly revenue per subscriber (ARPU) reduced by $0.31 to $69.51.
The lower ARPU was the result of discounts on programming to new subscribers, retention efforts and reduced premium movie revenue, partially offset by price increases on popular programming packages, changes in the sales mix towards high-definition (HD) packages and advanced hardware offerings. Equipment sales and other revenue plunged 44.2% year over year to $23.4 million, due to lower sales of non-subsidized direct broadcast satellite (DBS) accessories and digital converter boxes.
Dish added 241,000 new subscribers during the quarter, while average monthly subscriber churn rate (turnover rate) decreased 45 basis points (bps) to 1.57%. The growth in subscribers was driven by sales and marketing promotions as well as improved churn. The company’s churn rate reduced due to the recent completion of the security access device replacement program and increased new subscriber commitment period.
However, growth in subscribers continued to be adversely affected by sluggish economic conditions, intense competition from rivals, such as DirecTV (DTV), fiber- and Internet-based pay TV operators and signal theft. Dish Network, which focuses on the lower-end of the market, was also affected by the termination of distribution relationship with AT&T (T) in January of this year.
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