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Entries in Earnings Report (7)

Wednesday
Jul252012

iPhone 5 Speculation Drives Apple Earnings Down

DON EMMERT/AFP/Getty Images(NEW YORK) -- Apple's third quarter earnings, released Tuesday afternoon, were below analysts' predictions.  While the quarter is usually one of the slower ones for the tech giant, Apple CEO Tim Cook and CFO Peter Oppenheimer admitted that speculation surrounding the next iPhone -- what many are calling the iPhone 5 -- has affected sales of current iPhones.

Apple said it sold 26 million iPhones, down from 35.1 million in the previous quarter.  Presumably, people put off purchases of phones, waiting for a newer model.

"We're reading the same speculation about a new iPhone as you are, and we think this has caused some delay in purchasing," Oppenheimer said.

The CFO was referring to the flood of rumors about the next iPhone, including the ones that say the next version will have a larger and thinner display, a new dock connector, and a faster processor and graphics.

The topic of the rumors came up numerous times on the earnings call with analysts.  But no matter how hard analysts pushed, Cook and Oppenheimer would not talk about their product plans for the remainder of the year.

Oppenheimer added later in the call, "The fall transition is driving most of the decline in gross margin, it's not something we are going to talk about in any level of detail."

When Cook was asked about a new feature of iOS 6 called Passbook, which puts all tickets or coupons into one app, he wouldn't elaborate on what Apple might do down the road.

"We try very hard to keep our product roadmap secret and confidential.  We go to extreme activities to try and do that," Cook said.  "That, however, doesn't stop people from speculating and wondering."

Apple is also rumored to be planning a smaller version of its iPad before the year is up, which would compete with Google's recently-announced Nexus 7.  Cook wouldn't comment on that and mentioned the $399 version of the iPad 2.

"I think most customers feel that they are not looking for a tablet, they are looking for an iPad," Cook said.  "We are going to keep innovating in the space and make new products."

Again, he wouldn't elaborate on those products, which ultimately hit the company's bottom line this past quarter, but he was clear about how Apple intends to keep making those products.

"Our North Star is to maniacally focus on making the world's best products," Cook said.  He repeated that word "maniacally" twice during the call.

Copyright 2012 ABC News Radio

Thursday
Feb162012

GM Posts Record $7.6 Billion Profit

Bill Pugliano/Getty Images(LAKE ORION, Mich.) -- General Motors earned a record $7.6 billion profit last year, the highest profit in the company’s 103-year history. It sold 640,000 more cars and trucks in 2011 than it did in 2010 and took in a total of $105 billion.

Jeremy Anwyl, vice chairman of Edmunds.com, said while he is buying GM’s immediate success, he is not sold on the company’s future.

“The question for me about General Motors really is: Are they going to be able to sustain this momentum over the long haul?” Anwyl told ABC News. “If we are going to step back and say, ‘Was the bankruptcy a success or was it a failure?’ it’s really too early to say. We need to let a few more years pass to see if the new GM really is a new GM.”

To date, GM has paid back $26 billion of the $49.5 billion bailout and U.S. taxpayers still own 30 percent of the company in stock.

For the workers at GM’s plant in Lake Orion, Mich., this GM is much better than the GM that halted production there in 2009. Today, the plant is up and running, turning out 800 cars a day and employing 2,200 people.

GM says 47,500 blue collar workers, many of whom took pay cuts of up to 40 percent and cuts in benefits as part of the bailout, learned Thursday that they are receiving profit-sharing checks of up to $7,000.

GM employee Doreen Stover said her check is already spent.

“We get caught up on some bills -- and get my new GM vehicle,” she said.

The company’s turnaround is because of increased sales in North America and China. In China, GM’s Buick Excelle is the most popular car on the market and one GM car or truck is sold in the country every 12 seconds.

Despite all the success, Anwyl said, the road ahead for GM will not be easy:

“GM is going to find a much more competitive market environment than they have during the last couple of years, and that is going to test their ability…to continue to sell vehicles and be able to control costs, particularly incentive costs.”

Copyright 2012 ABC News Radio

Thursday
Oct132011

JPMorgan Profit Falls as Bank Earnings Season Opens

Chris Hondros/Getty Images(NEW YORK) -- As the Occupy Wall Street protest approaches its one-month anniversary, third-quarter earnings season opened with lower profit from JPMorgan Chase, the first of the major U.S. banks to report.

JPMorgan Chase said third-quarter profit fell 4 percent to $4.26 billion, or $1.02 a share, from $4.42 billion, or $1.01, a year earlier.  The bank was the most profitable in the U.S. last year, so its earnings are considered a barometer for the industry, which received a massive government bailout during the financial crisis that began in 2008.

"All things considered, we believe the firm's returns were reasonable given the current environment," Chief Executive Jamie Dimon said in a statement.

It is unclear how the Volcker rule, which proposes to ban banks with insured deposits from "high-risk," short-term trading with its own funds, will affect banks' financial results.  David Hilder, analyst with Susquehanna International Group, said Goldman Sachs and Morgan Stanley may exit the banking business if compliance regulations of the Volcker rule are implemented.  The rule is expected to be implemented next year.

Hilder said those two banks are less dependent on deposits as a source of funding than other banks.

"Once the Volcker Rule implementation regulations are final, we would expect both [Goldman Sachs and Morgan Stanley] to examine the feasibility, as well as benefits and costs, of exiting the banking system," he wrote in a research note on Tuesday.  "We would also expect to see more capital attracted to market-makers who are already outside the banking system."

Investment banking client activity may have slowed due to uncertainty in the global economy, especially in Europe; that slowdown has led to lower profit expectations for banks more heavily invested in the capital markets. Some analysts expect Goldman Sachs to report its first loss.  If the forecast is accurate, it would be Goldman Sachs' second quarterly loss since its initial public offering in 1999.

Copyright 2011 ABC News Radio

Friday
Jun102011

Toyota Announces Profit Forecast for 2012

PRNewsFoto/Toyota Media Relations(TOKYO) -- On Friday, Japanese carmaker Toyota announced that it expected lower profits for the upcoming fiscal year ending in March 2012.

In a statement, the company forecast a 31 percent drop in annual profits from last year’s $5 billion to a projected $3.5 billion. They attributed the anticipated drop to the March earthquake in Japan which slowed production and the strength of the yen.

The company stated that they expect the emerging economies specifically China and India, to continue expanding while the developed economies like the United States and Europe will continue their recovery at a moderate pace.

“The Japanese economy is expected to pick up gradually as well, backed by recovering economies overseas and the various effects of government policies. However, the damage by the Great East Japan Earthquake was widespread and serious, and will continue to significantly affect the Japanese economy, and the momentum of Japan’s economic recovery will weaken for the time being,” said the company.

Copyright 2011 ABC News Radio

Monday
May232011

Sony Revises Earnings Report, Predicts $3.2 Billion Loss

Comstock Images/Thinkstock(TOKYO) -- Sony has revised its forecast for the fiscal year ended March 31, announcing Monday that it now expects to report a loss of 260 billion yen, or $3.2 billion.

The company had previously expected to make a profit of 70 billion yen, or $860 million.  Its official earnings report is scheduled to be released on Thursday.

Sony attributed their negative projections to the March 11 earthquake and tsunami that rocked Japan, causing 10 of its factories and two of its research centers in the country to shut down.

Nine out of the 10 factories resumed production at the end of April.  The last one, which produces Blu-Ray discs, is expected to be back up and running by the end of this month.

Furthermore, Sony has been in the hotseat lately, dealing with a massive security breach to its PlayStation Network that jeopardized the personal information of 100 million users. 

Copyright 2011 ABC News Radio

Wednesday
Apr272011

Top Five Oil Companies Have High Expectations for Earnings

JIM WATSON/AFP/Getty Images(WASHINGTON) -- BP and ConocoPhillips announced their first quarter earnings on Wednesday, continuing the week when the biggest oil companies begin to release their 2011 profits. With rising gas and oil prices, analysts expect the five biggest oil companies to announce that they are swimming in revenue.

ConocoPhillips announced that its first quarter earnings increased 43 percent to $3 billion from $2.1 billion in the same period last year. BP's first quarter earnings were down this year -- $5.48 billion compared with $5.60 billion during the first quarter a year ago -- including a charge of $384 million related to oil spill in the Gulf of Mexico.

Valero Energy, based in San Antonio, Texas and the largest independent U.S. refiner, announced on Tuesday a first quarter profit of $98 million "primarily due to higher margins for diesel and jet fuel" compared to a first quarter loss last year of $113 million.

Energy behemoth Exxon Mobil is scheduled for Thursday while Chevron is slated for Friday. Marathon Oil, based in Houston Texas, will announce its earnings next week on May 3.

On Tuesday, the price of light, sweet, crude oil futures settled at $112.21 a barrel. Many analysts are waiting to see if oil prices will break the most recent high of Sept. 22, 2008, when oil settled at $120.92 a barrel.

The national average for regular gas is $3.88 a gallon, the highest since August 2008, according to the Department of Energy this week.

Copyright 2011 ABC News Radio

Thursday
Jan132011

Intel Earnings Report: 2010 Most Profitable Year in Company's History

Photo Courtesy - Intel Corporation(SAN FRANCISCO) -- Intel predicts that 2011 will be a good financial year after reporting a record-setting 2010.

"2010 was the best year in Intel's history.  We believe that 2011 will be even better," Intel CEO Paul Otellini said in a statement.

Intel Corporation netted $11.7 billion last year, up 167 percent from 2009.  But despite being the world's largest provider of PC processors, the company has yet to gain a competitive advantage in smartphones and tablets -- a trend growing increasingly popular with consumers who desire a more portable means for computing.

The technology company's outlook is optimistic though.  Intel expects to earn revenues of around $11.5 billion in the first quarter alone.

Copyright 2011 ABC News Radio







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