Morgan Keegan Expects Strong Q4 Earnings By NOK, QCOM, GRMN, MOT

Morgan Keegan expects companies covered in its research universe and catering to the consumer and enterprise end markets to post strong Q4 results. While the PC and smartphone cycles remained intact in Q4, Morgan Keegan believes that the quarter was driven by huge pent up demand. Normal seasonal weakness is expected across the board in March and the absence of help from foreign currency may limit gross margin upside in US-based companies.

Nokia (NYSE: NOK) is expected to post its revenues short and non-IFRS EPS ahead of the consensus. NOK may post its unit shipment ahead of the estimates, as Q4 tends to be seasonally strong and the company had launched several new smartphones and touch screens.

Qualcomm (NASDAQ: QCOM) may post revenues of $2.71 billion, reflecting a 7.6% Y/Y gain, and a non-GAAP EPS of $0.57. There is a very low probability of downside risk to the estimates, as QCOM had given guidance effectively at mid quarter. With QCOM’s shares climbing 20% since November, Morgan Keegan thinks that there is possibility of a correction when the company reports results.

The top and bottom line of Garmin (NASDAQ: GRMN) are expected to exceed the consensus. PND trends at GRMN are tracking as expected.

Motorola (NYSE: MOT) is expected to post its revenues and non-GAAP EPS at $6.02 billion and $0.09, respectively, exceeding the consensus expectations. Morgan Keegan thinks that the sales of MOT’s first Android-based smartphone may exceed the estimates of 1.3 million.