Financial News from Tech Trader Daily-Barron’s from 7/31/2009

“… SONY’s (SNE) American Depository Receipts rose 68 cents, or 2.5%, to $27.96 today after the company reported lower sales than expected in its fiscal Q1 but a slightly better than expected net losss per share. Maxim Group analyst Mark Harding reiterated a “Buy” rating on the shares and a $34 price target. To recap, SONY said sales in the June-ended quarter fell 19%, year over year, to $16.7 billion, below the average $19.2 billion estimate, while the net loss of 39 cents per share was better than the 69 cents forecasted, thanks to continued cost-cutting measures. Sales of video game hardware and software were …” …more details…

“… 3.7 million a year earlier, the company said. Sales of televisions and other consumer electronics were boosted by tight inventory, which helped lift SONY’s average selling prices, but the company said it did not expect this to continue. The company was able, however, to eke out an operating income when excluding effects of restructuring charges and contribution of losses recorded from its SONY-Ericsson mobile phone join-venture, which is struggling. On that basis, the company recorded a 25.7 billion Yen operating profit. That’s down 67% from the prior-year period, but would have been higher were it not from a 68-billion Yen hit from the rise in the Yen versus 2008. SONY reiterated a forecast for this fiscal year ending in 2010 that it gave back in May, given that “there continue to be many uncertainties in the business.” Harding thinks the company can actually do better than its forecast. “we believe that SONY has more room for operational efficiency improvements that should drive profitability above management’s guidance for fiscal 2009.” In particular, Harding thinks the company’s forecast for 300 billion Yen worth of savings in its television group may be conservative. Overall, “aggressive …” …more details…

“… In a note to clients this morning entitled, “Out Come the Wolves,” DEUTSCHE BANK analyst Jonathan Goldberg reiterates a “Buy” rating on shares of Palm (PALM), raises his price target to $17 from $16, and writes that hand-wringing about the company’s “Pre” smartphone are wrong. “We think market fears about return rates, weekly order trends and applications …” …more details…

“… of the phone, and he expects Palm to show progress with its applications catalog by September. Component suppliers, furthermore, indicate Palm is up’ING its orders from them, which he takes as a positive sign for Pre sales down the road. Although Palm stock has attracted quite a bit of volatility, he’s confident the August fiscal Q1 is on track to beat his estimate for a 68-cent-per-share net loss. “We think the Street is still underestimating …” …more details…

“… Shares of MOTOROLA (MOT) are up fractionally this morning, rising 5 cents, or .8%, to $7.24, after the company yesterday rose 9% on better-than-expected profit despite slightly missing revenue estimates. The stock was upgraded by Broadpoint/Amtech analyst Mark McKechnie from “Neutral” to “Buy,” and set a …” …more details…

“… quarter over quarter, to $253 million, despite a 45% drop in sales. For handsets, it’s all about the company’s plans for selling phones based on GOOGLE’s (GOOG) Android operating system, which will start in Q4, the company said. McKechnie believes Moto will sell about 900,000 units in this quarter and next, and 6.5 million next year. McKechnie believes the carriers in North America will be Verizon Communications (VZ) and Deutsche Telekom’s (DT) …” …more details…

“… Moto will sell about 900,000 units in this quarter and next, and 6.5 million next year. McKechnie believes the carriers in North America will be VERIZON COMMUNICATIONS (VZ) and Deutsche Telekom’s (DT) T-Mobile. He expects Moto’s average selling prices can rise from last quarter’s $126 to $276 with the Android devices. The only question then becomes how long it takes for the lower-priced, musty-old Moto handsets to go away. Moto sold 14.8 …” …more details…

“… units in this quarter and next, and 6.5 million next year. McKechnie believes the carriers in North America will be Verizon Communications (VZ) and DEUTSCHE TELEKOM’s (DT) T-Mobile. He expects Moto’s average selling prices can rise from last quarter’s $126 to $276 with the Android devices. The only question then becomes how long it takes for the lower-priced, musty-old Moto handsets to go away. Moto sold 14.8 million handsets last …” …more details…