3 Consumer Electronics-Related Stocks

NEW YORK (TheStreet) -- The Consumer Electronics Association predicts that global consumer electronics spending this year will top $1 trillion for the first time ever.

Spending was $993 billion in 2011, according to the CEA and GfK Boutique Research.

Although the overall number continues to rise, growth in many categories is slowing or beginning to contract, according to Steve Bambridge, global business director at GfK.

The two exceptions are smartphones and tablets. Tablets will account for about 5% of global electronics sales, up from 4% in 2011, while smartphones will account for 22%, up from 18% in 2011, according to CEA and GfK projections.

Tablets will see particularly strong growth, with 96 million new tablets expected to be sold in 2012, says Steve Bambridge, global business director at GfK.

Although consumers electronic sales are expected to be flat in North America this year, they'll see significant growth in emerging-market regions, such as Latin America, where CEA and GfK predict 11% growth.

Though the unit sales of TV will be flat, about 262 million worldwide in 2011, up by 1% over the 260 million units sold in 2011, LCDs will continue to see healthy growth. Mobile handset unit growth is seen at 12% in 2012. The CEA also predicts a 56% bounce in connected TV sales in 2012, and 122% growth in 3D sets.

Analysts surveyed by Bloomberg predict that on average, the following consumer electronics-related stocks could rise 14% to 91% over the next 12 months.

The stocks are listed in ascending order of upside potential, based on consensus analyst stock price targets.

3. Plantronics ( PLT) designs and manufactures lightweight communication and telephone headsets under its own brand. It also makes telephone products under the Clarity Brand. The stock has a market cap in excess of $1.6 billion.

Of the nine analysts covering the stock, six rate it a buy and three rate it a hold. On average, analysts polled by Bloomberg expect the stock to gain 13.6% to $40.71 in the coming 12 months.

In the second quarter of fiscal 2012, Plantronics reported net revenue of $176.9 million, up from $158.3 million a year earlier.

Net Income for the quarter was $27.5 million. GAAP diluted earnings per share were 60 cents, up from 52 cents a year before. The company paid a quarterly dividend of 5 cents per share.

For the third quarter of fiscal 2012, Plantronics expects net revenue of $175 million to $185 million. GAAP operating income is estimated between $31 million and $37 million, while diluted EPS is pegged at 53 cents to 63 cents.

2. Universal Electronics ( UEIC) is a global leader in wireless control technology for connected homes. It creates systems that enable consumers to control entertainment devices and digital media in the home. It has a market cap of more than $252 million.

Of the seven analysts covering the stock, four rate it a buy and three rate it a hold. Analysts polled by Bloomberg on average expect the stock to gain 23.3% to $21.10 in the coming 12 months.

For the third quarter of 2011, the company reported net sales of $123.5 million, vs. $79 million a year earlier. Adjusted pro forma net income was $8.0 million, or 53 cents per diluted share, compared with net income of $4.7 million, or 34 cents per diluted share, a year earlier.

Business Category revenue was $111.3 million, compared with $66.2 million a year earlier, contributing 90% of total net sales, vs. 84%. Consumer Category revenue was $12.2 million, compared with $12.8 million a year earlier, contributing 10% of total net sales.

For the fourth quarter, the company expects net sales to range between $115 million and $121 million, compared with $102.5 million in the fourth quarter of 2010. Adjusted pro forma earnings per diluted share for the fourth quarter are expected to range from 33 cents to 43 cents, compared with adjusted pro forma earnings per diluted share of 45 cents in the fourth quarter of 2010.

For full-year 2011, the company expects net sales in the range of $466 million to $472 million, which compares with $331.8 million in 2010. Adjusted pro forma earnings per diluted share for 2011 are expected to range from $1.47 to $1.57, vs. adjusted pro forma earnings per diluted share of $1.27 in 2010.

Recently, the company announced that it has partnered with a fabless semiconductor company Ozmo Devices to make available the company's ultra-low power, low-cost Wi-Fi Direct technologies in UEI's connected remote control platforms.

1. RealD ( RLD) licenses 3D technologies used in movie theaters and in some consumer electronics.

It has a market cap of more than $457 million.

Of the 11 analysts covering the stock, 64% rate it a buy and 36% rate it a hold. On average, analysts polled by Bloomberg foresee the stock gaining an average of 90.5% to $16.00 in the coming 12 months.

For the second quarter of fiscal 2012, RealD reported revenue of $88 million, an increase of 35% from $65.3 million in the second quarter of fiscal 2011.

Net license revenue was $52.0 million, an increase of 119%. GAAP net income attributable to common stockholders was $18.9 million, or 33 cents per diluted share, from a net loss of $5.1 million, or 12 cents per share.

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