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Zacks Analyst Blog Highlights: Hewlett Packard Company, 3Com Corporation, Cisco Systems Inc., Wal-Mart Stores Inc. and GlaxoSmit

Posted on: Fri, 13 Nov 2009 17:00:00 EST

Symbols: GSK, HPQ, WMT, CSCO, COMS

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Here are highlights from Thursday's Analyst Blog:

Hewlett-Packard to Acquire 3Com

HP's current networking products, sold under the ProCurve brand,
generate around $1 billion in annual sales (less than 1% of the
company's total revenue). The product line lacks competitive data
center switches, which makes it hard to take market share from
well-entrenched Cisco.

3Com's expertise is in networking products for data centers, which
supports HP's ProCurve networking equipment. Although the company has
seen better times, it has been beefing up its portfolio
by utilizing its design capabilities in low-cost China. The company is,
therefore, in a position to compete aggressively on price. 3Com's
challenges include its poor brand value in American and European markets
and its weak position in these geographies.

The HP-3Com combination is therefore an ideal fit, in our opinion. If
the deal closes, HP will acquire a new capability overnight, strengthen
its position in China and grow at its competitor's expense. 3Com will
benefit from HP's superior brand value and find a broader market for its
new products.

Wal-Mart Sales Up in U.S., Europe

Wal-Mart Stores Inc. (NYSE: WMT | Quote | Chart | News | PowerRating)
reported strong fiscal third-quarter earnings of 84 cents
per share, which surpassed the Zacks Consensus Estimate of 81 cents.
Earnings grew 9.1% year over year from 77 cents recorded in the year-ago
quarter, and exceeded management's guidance of 78 cents to 82 cents per
share.

Wal-Mart's net sales recorded a growth of 1.1% year over year to $98.7
billion, as a 1.2% expansion in Wal-Mart's U.S. segment coupled with a
1.6% increase in the International segment was partially offset by 0.7%
decline in the Sam's Club segment. The growth in International sales was
driven by robust performance in the U.K., Mexico and Brazil, but was
limited by unfavorable currency fluctuations.

The retailing behemoth, widely considered as a barometer of the
country's economy, said U.S. same-store sales dipped 0.5%
year-over-year, while that for Sam's Club rose by 0.1%.

Glaxo Reports Higher Revenues

GlaxoSmithKline, plc (NYSE: GSK | Quote | Chart | News | PowerRating)
reported third quarter income of 92 cents per American Depository Share
(ADS), 3 cents below the Zacks Consensus Estimate. The company reported earnings
of 94 cents in the year-ago period.

Third quarter 2009 revenue increased 3%, with growth
being driven by strong performances in emerging markets (up 25%), Japan
(up 19%) and Consumer Healthcare (up 8%). We were pleased to see growth
in Consumer Healthcare revenue despite the global slowdown.

Meanwhile, US sales continued to be impacted by generic competition with
revenue declining 12%. Sales of products like Imigran (down 74%),
Lamictal (down 21%) and Requip (down 30%) and Wellbutrin XL (down 81%)
kept declining.

Pharmaceutical product revenue increased 2% with sales being driven by
Advair/Seretide (up 5%) and Relenza. Relenza benefited from continued
orders from several governments for stockpiling.

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For full details on GlaxoSmithKline (GSK) GSK. GlaxoSmithKline (GSK) has Short Term PowerRatings at TradingMarkets. Details on GlaxoSmithKline (GSK) Short Term PowerRatings is available at This Link.

For full details on Hewlett-Packard Co (HPQ) HPQ. Hewlett-Packard Co (HPQ) has Short Term PowerRatings at TradingMarkets. Details on Hewlett-Packard Co (HPQ) Short Term PowerRatings is available at This Link.

For full details on Wal-Mart Stores Inc (WMT) WMT. Wal-Mart Stores Inc (WMT) has Short Term PowerRatings at TradingMarkets. Details on Wal-Mart Stores Inc (WMT) Short Term PowerRatings is available at This Link.

For full details on Cisco Systems Inc (CSCO) CSCO. Cisco Systems Inc (CSCO) has Short Term PowerRatings at TradingMarkets. Details on Cisco Systems Inc (CSCO) Short Term PowerRatings is available at This Link.

For full details on 3Com Corp (COMS) COMS. 3Com Corp (COMS) has Short Term PowerRatings at TradingMarkets. Details on 3Com Corp (COMS) Short Term PowerRatings is available at This Link.

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