Digital Daily » Sanford Bernstein

Comcast Not Really Feeling All That “Comcastic” Right Now

John Paczkowski — Fri, 29 May 2009 19:13:46 +0000

The econalypse and the job losses and lower housing starts it’s brought with it are having a nasty effect on Comcast’s bottom line. And according to CEO Brian Roberts, that’s not going to change any time soon. “It’s still a scary time,” he said in remarks at Sanford Bernstein’s 25th annual Strategic Decisions Conference in New York. “Everybody wants to say this thing is over, but we’re not out of the woods yet.”

While Comcast (CMCSA) had forecast a slowing of subscriber growth in its second quarter, the decline it’s now seeing is far worse than expected. “It is across all units,” said Roberts. We’re really not seeing a surging of disconnects. We’re just not seeing a surging of orders.”

Is that entirely econalypse-related? Or might it be due to competitive pressure from telcos? Roberts conceded that the market is an “intensely competitive one, but said Comcast has really just been dragged down by the souring economy. “I think there’s a general slowing of consumer expectations….” he said. “There are fewer opportunities to sell things.”

Time Warner on AOL: We Ought to Have That Removed…

John Paczkowski — Mon, 06 Apr 2009 21:30:01 +0000

Here’s further confirmation that Time Warner (TWX) is looking to spin off AOL. In an SEC filing Monday, the company said it is seeking to amend debt agreements that restrict it from unloading the struggling business. Coming as it does after the hire of Tim Armstrong, a former Google (GOOG) executive, as AOL CEO and chairman, the move would seem to suggest that Time Warner CEO Jeff Bewkes has given up on the idea of an AOL merger with Yahoo (YHOO) and is pushing ahead full-bore with a spinoff that, frankly, always seemed like the most likely option. “We view this announcement as significant as it clears a major hurdle to spin AOL to Time Warner shareholders,” Michael Nathanson of Sanford Bernstein wrote in a note to clients Monday. “This potential move, along with the recent hiring of Tim Armstrong, suggests that the spinning of AOL could likely be announced in the next few months.”

NY Post Downgrades Apple CEO's Weight to Underperform from Neutral

John Paczkowski — Mon, 21 Jul 2008 17:47:36 +0000

If Apple CFO Peter Oppenheimer’s April forecast was correct, Apple will report earnings of $1 per share on revenue of $7.2 billion when it posts third-quarter earnings later this afternoon. Of course, the company is known for low-balling expectations and being conservative with its fiscal outlooks, so if its results surpass this forecast, no one will be much surprised. And, indeed, most analysts seem to feel it will. Those surveyed by FactSet Research expect Apple (AAPL) will earn $1.07 per share on revenue of $7.36 billion. Others, like Toni Sacconaghi, who covers Apple for Sanford Bernstein, and RBC Capital Market’s Mike Abramsky, are betting on the company to top consensus estimates with revenues well above $7.5 billion. An impressive number if Apple manages to hit it, especially since the company is deferring recognition of iPhone sales during the quarter.

Given all this then, why are Apple shares trading down this morning? Seems concerns about CEO Steve Jobs’s gaunt appearance at Apple’s World Wide Developers Conference in June have not subsided, nor will they, now that The New York Post is questioning his health. “Apple’s hedge fund investors are very worried,” said a Wall Street source who has spoken with some of the company’s stakeholders,” the Post reports. ” … Multiple sources who have met with–and in some cases even dined with–Jobs in the weeks surrounding the introduction of the iPhone 3G on July 11, said they came away troubled by his thin appearance.”