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Stocks in Focus: Southern Copper, Logitech, and Tech Giants

Strategic Insights

— 1 min read

Zacks Equity Research analyzes the recent earnings performance of Southern Copper Corporation (PCU) and the acquisition of LifeSize Communications by Logitech International (LOGI). The company's net earnings jumped 78.6% quarter-over-quarter, driven by lower costs and higher productivity. Logitech's acquisition of LifeSize Communications is expected to enable the company to extend its leadership in video communication beyond the desktop. In the realm of tech giants, Cisco Systems Inc. (CSCO) and Microsoft Corp. (MSFT) are making significant moves in the videoconferencing market.

Key Takeaways:

  • Southern Copper Corporation (PCU) posted net earnings of 37 cents in the third quarter of 2009, outperforming the Zacks Consensus Estimate of 31 cents.
  • Earnings jumped 78.6% from 21 cents sequentially, driven by lower costs and higher productivity.
  • Copper production in the quarter improved 1.3% to 120,240 tons, driven by higher production at the La Caridad mine in Mexico and the Peruvian mines.
  • Logitech International (LOGI) acquired LifeSize Communications for $405 million in cash, expanding its leadership in video communication beyond the desktop.
  • LifeSize is a global leader in high-definition video communication solutions, with more than 9,000 video conferencing customers across 80 countries.
  • The acquisition is expected to be neutral to slightly positive to Logitech's operating income (excluding acquisition-related charges) in FY 2011.

Statistics:

  • Southern Copper Corporation's (PCU) net earnings increased by 78.6% quarter-over-quarter.
  • Copper production in the quarter improved 1.3% to 120,240 tons.
  • Molybdenum production increased 14.3% to 5,191 tons compared to the year-ago quarter.
  • LifeSize Communications is expected to generate $90 million in revenues in CY 2009, with CY 2010 revenues expected to grow between 40% and 60%.
  • Logitech expects the acquisition to be neutral to slightly positive to its operating income (excluding acquisition-related charges) in FY 2011.

Sources:

  • Zacks Equity Research
  • Zacks.com: Southern Copper Corporation (PCU)
  • Zacks.com: Logitech International (LOGI)
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