In what may be its last report as an independent company, digital map czar Navteq (NYSE:NVT) will report third-quarter earnings results Wednesday. To help get a read on where the company is going, let's backtrack a little.
What analysts say:
- Buy, sell, or waffle? With the company due to be acquired by Nokia (NYSE:NOK), only 17 analysts still post ratings on Navteq. Five still have a buy on shares, while 12 say hold.
- Revenues. On average, analysts estimate a 36% jump in sales, to $194 million.
- Earnings. Profits are predicted to rise 4% to $0.29 per share.
What management says:
With the Nokia purchase pending, numerous concerns have been voiced about the ongoing availability of maps to Navteq customers, such as potential Nokia competitor and GPS maker Garmin (NASDAQ:GRMN). But Nokia and Navteq management have reassured the market that they intend to continue support for all Navteq customers, such as a recent deal to be the primary supplier of location data for wireless service provider Helio, a partnership between Earthlink (NASDAQ:ELNK) and SK Telecom (NYSE:SKM). Navteq CEO Judson Green has stated that Navteq will remain an independent operating company under Nokia, with the ability to serve all customers.
What management does:
Several nonrecurring items including a stronger euro helped boost Navteq's margins earlier this year, but management has cautioned that the balance of the year might not see similar benefits.
|
4/06 |
7/06 |
10/06 |
12/06 |
4/07 |
7/07 | |
|---|---|---|---|---|---|---|
|
Gross |
51.7% |
51.3% |
51.5% |
52.6% |
53.7% |
54% |
|
Operating |
25.3% |
23.9% |
24.2% |
26.4% |
27.7% |
28% |
|
Net |
33.1% |
32% |
17.3% |
18.9% |
20% |
20.6% |
One Fool says:
With Nokia's purchase of Navteq expected to go through, there may not be much more of a public story to follow with the company. But with many investors and analysts believing Nokia's $8.1 billion offer was way too much for Navteq, it may be interesting to check back in a year or so and see if the pairing has gone well, or more the way of eBay's (NASDAQ:EBAY) deceptively non-cash $1.4 billion dollar write-off for Skype. Either way, the investing public will be missing out on a great growth story in the digital mapping space.
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