Wedbush: Plantronics UC Momentum Tampered by Weakening Core Business

Wedbush published a research report earlier today maintaining its Neutral rating on Plantronics PLT given signs that the business is being negatively impacted by the spending environment and intensifying competition. According to the report, “The company delivered an EPS beat and in-line revenue in FQ3 due to solid UC product sales offset by weakness in North America, weak performance in mobile, and a decline in the core OCC business. The company cited slower US enterprise and a product transition in wireless leading to below-seasonal non-UC revenue growth. Results were surprisingly strong in EMEA, but an overall increase in mix of consumer and UC products negatively impacted margins.” Wedbush reiterates its $34 PT on Plantronics, which closed yesterday at $37.57.