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Entries in Earnings (28)

Thursday
Oct252012

Apple Sold 27 Million iPhones in 4th Quarter; Earnings Lower Than Expected

Feng Li/Getty Images(NEW YORK) -- Apple Inc. (NASDAQ: AAPL), the world's most valuable company, reported lower-than-expected fourth-quarter earnings Thursday because it's having trouble keeping up with demand for its market-leading products.

Inventory issues have reportedly affected iPhone 5 sales, struggling to keep up with orders.

The company sold 26.9 million iPhones in the last three months, up 58 percent in the same period a year ago. The company sold 14 million iPads, up 26 percent, and 4.9 million Macs, a one-percent unit increase. The company sold 5.3 million iPods, a 19-percent decline from a year ago.

"We're very proud to end a fantastic fiscal year with record September quarter results," Tim Cook, Apple's CEO, said in a statement. "We're entering this holiday season with the best iPhone, iPad, Mac and iPod products ever, and we remain very confident in our new product pipeline."

Apple's "pipeline" of manufacturing and distribution will be key in the next coming months during the holiday season, which is traditionally the best quarter for the tech company and many other retail companies.

Apple earned $35.97 billion in revenue, slightly higher than the $35.80 billion some analysts expected. Meanwhile, its earnings were $8.2 billion, lower than expected.

Shares of Apple closed down 1.14 percent to $609.80 a share at the end of regular trading.

Tavis McCourt, analyst with investment firm Raymond James, said he expected slower growth in the next few quarters than in previous years.

Raymond James expects Apple's stock to reach $730 in a year.

"Apple is doing very well. They are taking market share across all their product categories, but the economy is slowing as well," he said.

On Tuesday, Apple announced the new iPad Mini, which is slightly cheaper at $329 compared to the $399 iPad 2, a fourth-generation iPad and several new Mac computers, including a 13-inch Macbook Pro.

Overall, McCourt said he was "pleased" with Thursday's product announcement, though Apple's main revenue driver is the iPhone.

"The iPad, though successful, is still only in the early stages of its growth," he said.

On Tuesday, Apple said it sold its 100 millionth iPad two weeks ago.

Apple had 3.2 million iPads in its channel at the end of June and may have bled the previous iPad inventory ahead of the fourth-generation iPad launch, negatively impacting the number of products available to the public, McCourt notes.

In July, Apple reported lower-than-expected third-quarter revenue of $35 billion, while analysts had expected $37 billion. The company reported higher profit of $8.8 billion for the third quarter, up from $7.3 billion the previous year. The company had sold 17 million iPads in that quarter.

Copyright 2012 ABC News Radio

Tuesday
Oct232012

Facebook Celebrates Positive Third-Quarter Earnings

Peter Foley/Bloomberg via Getty Images(MENLO PARK, Calif.) -- Facebook stock has disappointed lots of investors, but now its earnings have some smiling.

With a revenue of $1.3 billion, Facebook reported better-than-expected third-quarter earnings Tuesday, apparently because they're making money from ads on mobile devices. The social networking company's earnings were up 32 percent from a year ago.

Facebook founder and CEO Mark Zuckerberg celebrated the good news on a conference call with investors.
 
"We have a lot going on right now and I'm excited about the progress we're making," he said Tuesday.

Zuckerberg said that in years to come, he expects billions more smartphones to be in use than desktop computers.

"We already reach more than a billion people" each month, he added. Currently more than 600 million people share and connect monthly on the social networking site using mobile devices, he said in a company statement.

Zuckerberg noted the importance of finding ways to generate ad revenue on mobile devices. Eighty-six percent of Facebook's revenue came from advertising.

Copyright 2012 ABC News Radio

Friday
Oct122012

Wall Street Report: Stocks Have a Difficult Week and Earnings Due Out Next Week 

Hemera/Thinkstock(NEW YORK) -- The markets open Monday after what was a mostly a rough week for stocks.

The Dow was up two points at the Friday's closing bell, the Nasdaq was down five and the S&P off four.

Lots of earnings reports will be released next week, starting with Citgroup's 3rd quarter numbers on Monday, as well as the latest retail sales figures.

On Wednesday, earnings for Bank of America, eBay, Halliburton, American Express, PepsiCo and U.S. Bancorp will also be released.

The weekly jobless numbers are due out on Thursday, as well as Microsoft’s and Nokia's third quarter numbers.

Copyright 2012 ABC News Radio

Thursday
Jul262012

Facebook: New Mobile Products Coming, No Facebook Phone

Justin Sullivan/Getty Images(NEW YORK) -- While Facebook’s earnings call was full of revenue generating strategies, including an increase in sponsored stories, Facebook COO Sheryl Sandberg and CEO Mark Zuckerberg stressed the company’s upcoming mobile products and integration.

“We will develop new products, particularly in mobile,” Sandberg said as she was listing other product and revenue plans.

Facebook’s earnings barely matched analysts’ expectations Thursday, and its stock dropped to an all-time low of $25.50 per share in after-hours trading.

Zuckerberg jumped in later to discuss mobile app products. “We want to support an ecosystem where other apps can build on top of Facebook,” he said. Zuckerberg pointed to the forthcoming Facebook integration coming to Apple’s iOS 6 for the iPhone and iPad.

Zuckerberg also shot down rumors about a Facebook smartphone.  "There are a lot of things you can build in other operating systems as well that aren’t really taking, that aren’t really like building out a whole phone, which wouldn’t make much sense for us to do,” he said.

Rumors of a dedicated Facebook phone based on Android have sprung up over the last couple of months.

Facebook has been criticized on Wall Street for not having a strong enough revenue-generating mobile strategy.  It has recently launched a dedicated Facebook camera app and acquired mobile app companies, including Instagram and Glancee. The Instagram deal has not yet closed, Zuckerberg said on the call.

Copyright 2012 ABC News Radio

Thursday
Jul262012

FB Earnings: Facebook Beats Sales Estimates; Shares Rise

Facebook(NEW YORK) -- Facebook (Nasdaq: FB), after its disastrous initial share offer in May, issued its first earnings report as a public company today, topping analyst expectations for sales at $1.184 billion and meeting profit estimates.

"Our goal is to help every person stay connected and every product they use be a great social experience," Mark Zuckerberg, Facebook founder and CEO, said in a statement. "That's why we're so focused on investing in our priorities of mobile, platform and social ads to help people have these experiences with their friends."

The company's shares closed Thursday at $26.84, down 8.5 percent and some 26 percent below its offer price back in May. They surged in aftermarket trading to more than $29.

Facebook said profit was 12 cents a share after certain costs including a large payout to insiders from its IPO.

During Facebook's earnings conference call, which will include comments from Zuckerberg, investor attention will focus on how much the social network made in advertising revenue and whether users are sticking despite cutthroat competition from sites like Twitter and Pinterest.

Zuckerberg's net worth sunk about $5 billion from a peak of about $19 billion after Facebook went public.

The company reported 955 million monthly active users as of June 30, an increase of 29 percent, year-over-year.

At the end of March 2012, there were 901 million monthly active Facebook users with 526 million daily active users on average.

Before the highly publicized and blundered IPO on May 18, Facebook revealed it made $1.058 billion in revenue for the first quarter of 2012, up from $731 billion last year. Its net income had dropped to $205 million from $233 million last year.  

Copyright 2012 ABC News Radio

Thursday
Jul262012

Facebook to Announce Second-Quarter Results

Justin Sullivan/Getty Images(NEW YORK) -- Facebook (Nasdaq: FB), after its disastrous initial share offer in May, will issue its first earnings report today when the markets close. Investor attention will focus on how much the social network made in advertising revenue and whether users are sticking despite cutthroat competition for online engagement.

Chief Executive Officer Mark Zuckerberg will hold an earnings conference call at 5 P.M. ET, which will be available via live webcast on Facebook's investor relations page. The Harvard dropout's net worth sunk about $5 billion from a peak of about $19 billion after Facebook went public.

Before the highly publicized and blundered IPO on May 18, Facebook revealed it made $1.058 billion in revenue for the first quarter of 2012, up from $731 billion last year. Its net income had dropped to $205 million from $233 million last year.

The company's shares traded today at $27, some 26 percent below its offer price back in May.

At the end of March 2012, there were 901 million monthly active Facebook users with 526 million daily active users on average.

Aaron Kessler, an analyst with investment firm Raymond James, estimates second-quarter revenue of $1.11 billion, slightly below consensus of $1.16 billion. Kessler estimates about 561 million daily active users in the second quarter, which would indicate growth of 35 percent year-over-year.

Overall, analysts expect revenue to expand 9 percent to $1.15 billion and earnings per share to be 12 cents.  

Copyright 2012 ABC News Radio

Monday
Jul232012

CEO of Lenovo Gives $3 Million in Bonuses to Employees

Lenovo(NEW YORK) -- Lenovo CEO Yang Yuanqing has decided to use a $3 million bonus he received for the company’s record-setting year to reward thousands of the company’s rank-and-file employees.

The 47-year-old gave around 10,000 employees worldwide bonus checks for their hard work, Lenovo spokesman Jeffrey Shafer said.

The computer company announced its fourth quarter earnings in May. According to a press release, net profit for the company rose 73 percent year over year. The brand’s global PC sales rose by 35 percent year over year.

The employees, who worked in different areas of the company -- from manufacturing to administration to other non-management positions, each received around $300 as a part of Yuanqing’s generosity.

“We ended the year as the number two PC maker,” Shafer said. “Yuanqing felt that he was rewarded well simply as the owner of the company," said Shafer, who noted Yuanqing owns about 8 percent of the company.

Shafer said the CEO felt like it was the right thing to do to, “redirect [the money] to the employees as a real tangible gesture” for their efforts.

Copyright 2012 ABC News Radio

Thursday
May102012

Want More Money? Move to the Mid-Atlantic or New England

Nick M Do/Getty Images(NEW YORK) -- Want to get richer during your lifetime? Live in New York, New Jersey or Maryland, according to a groundbreaking study released Thursday by the Pew Center on the States. People living in the Mid-Atlantic and New England states tend to be the most economically mobile, while those in the South are the least mobile, the study found.

The best places to climb the economic ladder are Connecticut, Pennsylvania, Maryland, Massachusetts, Michigan, New Jersey, New York, and Utah, while the worst states include Alabama, Florida, Kentucky, Louisiana, Mississippi, North Carolina, Oklahoma, South Carolina and Texas.

And just the act of moving could also could also help you attain the American dream, the study found. One-third of Americans who live in a different state from where they were born are more likely to be upwardly mobile, according to the data.

"Where you live matters for your economic mobility prospects," study author Erin Currier told ABC News. This is the first time economic mobility has been analyzed on a state-by-state level. And while the study did not look at why the states performed the way they did, past research suggests that higher education, savings and assets, and neighborhood prosperity or poverty during childhood drive economic advancement, said Currier.

Drawing U.S. Census and Social Security data from nearly 65,000 individuals in all 50 states over a 10-year period, the study analyzed three measures of economic mobility: individuals' earnings growth; individuals' earnings growth relative to others in their state, and state-wide economic mobility compared to national averages.  

Copyright 2012 ABC News Radio

Tuesday
Apr242012

Apple Reports Blowout Profits Again on iPads, iPhones

Kevork Djansezian/Getty Images(NEW YORK) -- Apple announced strong second-quarter earnings Tuesday, beating Wall Street estimates and easing worries that the tech giant may be losing steam.

Apple said that profit nearly doubled to $11.6 billion, or $12.30 a share, on sales of $39.2 billion compared with a year earlier.

Apple sold 11.8 million iPads last quarter and 35 million iPhones, in line with analyst expectations.

Michael Holt, senior equity analyst with investment firm Morningstar, said Apple's product gross margin was the most impressive figure in the earnings report.

Describing the profit from each device beyond what it costs to manufacture it, the gross margin percentage for the iPhone grew to 47.4 percent from 41.4 percent a year ago.

"The important thing about that is they are not having to compromise on their pricing to have product sold," Holt said. Coupled with "strong" sales of the iPhone, Holt said Apple has been able to sustain their premium pricing and still ship a large number of units.

Tim Cook became CEO in August 2011 before founder Steve Jobs passed away in October 2011.

"We're thrilled with sales of over 35 million iPhones and almost 12 million iPads in the March quarter," said Cook. "The new iPad is off to a great start, and across the year you're going to see a lot more of the kind of innovation that only Apple can deliver."

Shares of Apple stock had slipped in trading on Tuesday after AT&T Inc., the largest seller of iPhones in the U.S., announced a sharp drop in first-quarter iPhone sales. Apple's stock has been on a recent decline from its 52-week high of $644 a share.

The majority of Apple's profit comes from iPhone sales, with the three of the four national U.S. wireless carriers -- AT&T, Sprint, and Verizon -- selling the popular smartphone.

Copyright 2012 ABC News Radio

Thursday
Feb092012

Groupon Shares Plunge After Fourth-Qtr. Loss

Scott Olson/Getty Images(CHICAGO) -- Shares of deal site Groupon plunged Thursday morning after the firm reported another quarterly loss when analysts had expected a profit.

Groupon, which first sold shares to the public Nov. 4 at $20 each, said after the markets closed Wednesday that the fourth-quarter loss was 2 cents per share, compared with a loss of 53 cents a year earlier. Sales, though, soared to $506.5 million from $172.2 million.

The firm spent $156.5 million to attract users of its coupons, which offer discounts on goods and services through local retailers. Costs to set up a new international headquarters in Switzerland led to an extra $34.8 million in taxes, wiping out any chance of a profit for the quarter.

Groupon says it has over 33 million active users as of the fourth quarter.  The company launched in November 2008 and despite its popularity, has never made a profit.

Its shares fell 10 percent to $22 in trading at the market open.

Copyright 2012 ABC News Radio







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