FBN
Securities lifted its price target on Polycom Inc. (NASDAQ:PLCM) to $25
from $22, after the provider of telepresence and video services posted
better-than-expected quarterly numbers.
Shebly Seyrafi, an analyst at FBN, said the company's quarterly beat
was due to strong opex management and better service revenue. He retains
his "Outperform" rating on the stock.
Seyrafi said though the company continues its reorganization of N.
America, it is growing very well internationally. In CH2 2012 N. America
should drive much better growth, he wrote in a note.
The posted fourth-quarter non-GAAP earnings per share of 41 cents
that topped consensus of 29 cents. Revenue rose to $407 million from
$340 million, also beating consensus of $401.3 million. Operating margin
grew to 18.7 percent from 16.2 percent in the third quarter.
Seyrafi said his new first quarter EPS estimate for the company is 31 cents, above prior consensus of 29 cents.
The Pleasanton, California-based Polycom offers communications
services to enterprise, government, education, and healthcare customers
to enable voice, video, and content communications.
PLCM shares, which have been trading in the 52-week range between
$14.45 and $34.30, is currently up 15 percent to trade at $21.1 in early
trade on Tuesday.
