NII Holdings, Inc. (NIHD) - Bear of the Day

By Zacks Equity Research,

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We have downgraded our recommendation on NII Holdings, Inc. ( NIHD ) to Underperform backed by our assessment that the company s nightmare will continue in the near future. NII Holdings reported dismal financial results for the third quarter of 2011. Both the top line and bottom line were well below the Zacks Consensus Estimates.

Management has slashed its fiscal 2011 financial outlook, mainly driven by the volatile macro-economic condition coupled with significant depreciation of several Latin American currencies in comparison with U.S. dollars. Moreover, stiff competitive scenarios in Latin American markets are other impediments for such a reduced outlook.

We believe intensifying competition and increased promotional expenses may reduce the company's near-term growth opportunities. We do not find any immediate catalysts and expect NII Holdings to report weak financial results for the company's 4th quarter.
NII HLDGS-CL B ( NIHD ): Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing , Investing Ideas , Stocks
Referenced Stocks: NIHD

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