On a geographic basis, revenue rose 7% year over year in Russia, 4% in Uzbekistan, 35% in Turkmenistan and 3% in Armenia, while sales declined 8% in Ukraine.

Mobile TeleSystems added approximately 2.8 million customers in the quarter (up sequentially), primarily driven by a 2.3 million net subscriber growth in Russia. This was marginally offset by 155,000 subscriber losses in Ukraine. At the end of the second quarter, the company served approximately 99.5 million subscribers (67.4 million in Russia), up 9.4% year over year.

In Russia, quarterly churn (customer switch) fell to 6.9% sequentially, while increasing on a year-over-year basis. Russian ARPU (average revenue per user) climbed sequentially while decreasing from the year-ago quarter. Churn in Ukraine declined both sequentially and on a year-over-year basis but rose in Uzbekistan. ARPU in Ukraine grew sequentially despite falling from the year-earlier period.

Mobile TeleSystems maintained its leadership in most markets during the quarter. On a sequential basis, its market share in Russia and Armenia remained stable at 34% and 81%, respectively. The company gained market share in Ukraine (up 1% to 33%) while losing in Uzbekistan (down 1% to 45%) and Turkmenistan (down 2% to 85%).

During the first half of 2009, the company generated free cash flow of $109.2 million, down significantly from the $1 billion registered a year ago, due to higher capital expenditure. Mobile TeleSystems exited the quarter with approximately $1.6 billion in cash and cash equivalents and $4.6 billion in total debt.

Mobile TeleSystems is expanding its 3G network footprint through commercial service launches in selected cities of Russia and surrounding countries. It has launched 3G services in the three biggest Armenian cities and recently deployed the first phase of its 3G network in Moscow.

The company plans to spend up to $1.6 billion for upgrading 3G networks in Russia through 2011 to provide high-speed data transfer services to its customers. In order to meet the financing requirements associated with its aggressive network rollout plan, Mobile TeleSystems has secured a loan of €413 million ($578.2 million) from three international lenders. It expects to earn an additional $2.5 billion in sales from 3G services by 2011, including $2 billion from Russia alone.

Moreover, the company is aggressively pursuing acquisitions and strategic partnerships to strengthen its “mono-brand" mobile retail network while implementing cost optimization programs to lower operating expenses. To strengthen its retail distribution network, Mobile TeleSystems bought Russia-based retail chains Eldorado and Telefon.Ru. The mono-brand retail initiative is expected to provide the company with a competitive edge over rival VimpelCom (VIP), which has acquired approximately 50% of the multi-brand mobile retailer Euroset.

While we see expansion of the 3G network as a key growth driver, related costs to support network deployments and promotional initiatives may tighten free cash flow and margins in 2009. Moreover, increasing competition, foreign exchange exposure, regulatory challenges and market risk in Russia warrant a cautious view on the stock.

Cyberonics, Inc. (CYBX) gained 22.3% for the week ended Dec 5, which made this medical technology company a top-performing Zacks #1 Rank. Earnings estimates for the fiscal years ending April 2009 and April 2010 advanced 28% and 9.3%, respectively, over the past month. In addition, analysts currently expect profit for next fiscal year to jump approximately 44% from this fiscal year. CYBX develops and markets the VNS Therapy System, which is used for the treatments of epilepsy and depression.

CYBX announced a strong fiscal second-quarter performance last month, helped by growth from its core U.S. epilepsy business. Earnings per share of 14 cents easily surpassed the year-ago loss of 15 cents, while also eclipsing the consensus by as much as 133%. Net sales advanced 24% to $36 million. CYBX increased its sales guidance for fiscal 2009 to between $136 million and $140 million. The company believes that U.S. and international epilepsy markets represent opportunities for consistent growth in sales and earnings moving forward.

Shanda Interactive Entertainment Ltd. (SNDA), a Chinese interactive entertainment media company, fought off the global economic malaise and reported a strong third-quarter performance last week. Diluted earnings per ADS reached US68 cents, which topped the consensus by more than 23%. The result also improved upon the year-earlier performance. Consolidated net revenues reached US$137.3 million, marking a year-over-year jump of 42.7%.

SNDA made the Zacks #1 Rank Top Performers List for last week as shares increased 21.6%. The company was also recently featured as a Value Stock of the Day at Zacks.com. Earnings estimates for this year are up 4.1% over the past 2 months, including a gain of 2.7% in 7 days. Expectations for next year advanced 3.8% and 2.3%, respectively, in those timeframes. Analysts now expect 18.3% profit growth for next year over this year. The company is confident that the online entertainment industry will be more resilient in this economic cycle, and believes it is in a good position to take advantage.

Deckers Outdoor Corporation (DECK) is holding up better than most retailers in this difficult environment. The footwear company, which markets the popular UGG brand of shoes, made the Zacks #1 Rank Top Performers List for last week as shares moved higher 15.5%. Analysts' earnings estimates are also on the rise, gaining 4.9% for this year and 2.8% for next year over the past 2 months. Next year's profit is expected to advance almost 17% from this year; a positive sign for the future.

DECK has an excellent record of beating Wall Street's quarterly earnings expectations. In the past 4 quarters, the company has put together an average surprise of approximately 26%. Most recently, it announced earnings per share of $1.97 for the third quarter, compared to $1.47 a year earlier. That result beat the consensus by about 8.2%. Net sales improved 52.5% year over year to $197.3 million from $129.4 million. Sales for the UGG brand jumped 57.1%. Thanks to the strong third-quarter report, DECK also raised its fourth-quarter and full-year outlook.

Thoratec Corporation (THOR) announced last Thursday that analysis from its HeartMate II pivotal trial showed that patients displayed statistically superior outcomes when implanted with the device, compared to a control group implanted with an existing device. The medical devices company was a top-performing Zacks #1 Rank company for the week ended Dec 5, as shares increased 12.6%. Over the past 2 months, earnings estimates for this year advanced approximately 21%.

THOR was featured as a Momentum Stock of the Day at Zacks.com on Dec 4. During its third-quarter report from late October, THOR announced earnings per share that easily eclipsed the consensus and year-ago result, while revenues jumped 44% year over year to $80.8 million from $56.1 million.

Zhongpin Inc. (HOGS) made the Zacks #1 Rank Top Performers List for last week as shares increased 9.8%. Over the past month, earnings estimates for this year and next are up approximately 5.3% and 3.5%, respectively. Analysts currently see next year's profit improving about 25% over this year's. On Dec 1, the company announced an agreement to lease a pork production facility in Shenzhou city, beginning from early December 2008. HOGS is a leading meat and food processing company in China.

The company's third-quarter results including earnings per share of 34 cents that beat the consensus by 13.3%. Revenues surged 116% to $153.8 million. HOGS attributed the quarter's results to strong demand for its products and the additional capacity added by the Luoyang plant. The company believes it is poised to capitalize from increased capacity, strong demand and its expanding retail distribution network.

"CYBX" Free Stock Analysis: Buy? Sell? Hold?
"SNDA" Free Stock Analysis: Buy? Sell? Hold?
"DECK" Free Stock Analysis: Buy? Sell? Hold?
"THO2" Free Stock Analysis: Buy? Sell? Hold?
"ZHNP" Free Stock Analysis: Buy? Sell? Hold?
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