Wall Street Brief: Samsung to Beat Forecasts, Zynga Sell-Off Continues
Samsung (SSNLF.PK) anticipates its third quarter earnings will exceed forecasts as its operating profit increased 91 percent to a record 8.1 trillion won ($7.09 billion) and sales rose to 51 trillion-53 trillion won, up from 41.27 trillion won in the previous year. Earnings jumped thanks to Samsung’s mobile phone division, whose profit likely doubled to 5 trillion won as smartphone shipments moved passed 58 million. High-end TVs also saw strong sales.
Sprint’s (NYSE:S) board has scheduled a noon phone meeting on Friday and will talk about potentially renewing its pursuit of MetroPCS (NYSE:PCS), reported The Wall Street Journal. In February, the board had rejected what appeared as a done deal for MetroPCS. Sprint’s stock was only $2 a share, but after rallying to $5, movement on its the network upgrade, and its iPhone (NASDAQ:AAPL) investment reaping benefits, directors may now be singing a different tune.
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Zynga (NASDAQ:ZNGA) shares are off more than 17 percent after warning on Thursday that it expected 2012 bookings of $1.085 billion-$1.1 billion, coming in on its previously cut $1.15 billion-$1.225 billion guidance. The company also sees third quarter revenue of $300 million-$305 million higher than estimates but forecast that bookings will come to $250 million-$255 million. Zynga attributed the lower numbers to a weakness in its web games “invest and express” category such as FarmVille and CityVille.
The Senkaku-Diaoyu islands dispute between Japan and China affected Japanese car makers in September, with Mitsubishi’s Chinese sales plummeting 63 percent on the year while Mazda (MZDAF.PK) fell 35 percent and Toyota’s (NYSE:TM) sales dropped 40 percent reported the Financial Times. In addition, Toyota will slash production in China by more than half and postpone exports of the Lexus.
Cisco (NASDAQ:CSCO) is shaking up its management; worldwide sales chief Rob Lloyd will take over as President and head of development and sales. COO Gary Moore being has also been named a president while Americas sales chief Chuck Robbins takes over Lloyd’s previous role. The moves come after CEO John Chambers previously said he may retire in two to four years, and named Moore, Lloyd, and Robbins (among others) as possible successors.
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