Apple Sales Miss Target; Microsoft, Yahoo Net Swing to Loss

Mukesh Buch
22 Jul, 2015
New York City

Apple revenues and profit surged above 33%. Boeing net plunged 33% but revenues jumped 11%. Illinois Tool net tumbled 68%. Microsoft net swung to a loss. Whirlpool net fell 1% while sales climbed 11%. Yahoo net swung to a loss.

[R]12:35 PM New York – Apple revenues and profit surged above 33%. Boeing net plunged 33% but revenues jumped 11%. Illinois Tool net tumbled 68%. Microsoft net swung to a loss. Whirlpool net fell 1% while sales climbed 11%. Yahoo net swung to a loss.[/R]

Tollbooth Index fell 0.3% or 35.93 to 10,860.57.

Earnings Review

Abbott Laboratories ((ABT)) gained 1.4% or 69 cents to $50.46 after the health care products maker reported revenues in the revenue in the second-quarter ending in June increased 2.2% to $5.17 billion from a year ago period.

Net income in the quarter soared 68.3% to $784 million or 52 cents per diluted share compared to $466 million or 30 cents from the same quarter last year.

Abbott lifted GAAP earnings per share forecast for the year between $1.50 and $1.60 compared to earlier estimated range in April between $1.33 and $1.43.

Apple Inc ((AAPL)) declined 5.8% or $7.61 to $123.16 after the mobile, computers and media devices maker reported revenue in the third-quarter ending in June soared 33% to $49.61 billion from a year ago period.

Net income in the quarter climbed 39% to $10.7 billion or $1.85 per diluted share compared to $7.7 billion or $1.28 from the same quarter last year.

Apple said sales in Macs in the quarter increased 9% to 4.80 million but sales in iPad business tumbled 18% to 10.9 million units.

The company’s iPhones sales in the quarter climbed 35% to 47.5 million from 35.2 million in the same period a year ago.

For the quarter, revenues in America climbed 15% year-over-year to $20.2 billion and Europe revenue jumped 19% to $10.3 billion. Revenues in Greater China surged 112% to $13.2 billion and revenues in Japan advanced by 9%.

Apple forecasted revenues for the fourth-quarter in the range of $49 billion to $51 billion and gross margin between 38.5% and 39.5%.

Boeing Co ((BA)) gained 1.5% or $2.22 to $147.22 after the aerospace company said sales in the second-quarter ending in June jumped 11% to $24.54 billion from a year ago period.

Net income in the quarter plunged 33% to $1.11 billion or $1.59 per diluted share compared to $1.65 billion or $2.24 from the same quarter last year.

For the year, Boeing forecasted revenues in the range of $94.5 billion to $96.5 billion but diluted earnings per share to drop between $7.60 and $7.80 compared to previous guidance of $8.10 to $8.30.

The Coca-Cola Co ((KO)) rose 15 cents to $41.34 after the beverages maker said net revenues in the second-quarter ending in June dropped 3% to $12.16 billion from a year ago period.

Net income in the quarter soared 20% to $3.11 billion or 71 cents per diluted share compared to $2.60 billion or 58 cents from the same quarter last year.

Illinois Tool Works Inc ((ITW)) slipped 1.6% or $1.56 to $90.64 after the industrial products and equipment maker said revenues in the second-quarter ending in June declined 7.8% to $3.43 billion from a year ago period.

Net income in the quarter tumbled 67.7% to $480 million or $1.30 per diluted share compared to $1.49 billion or $3.66 from the same quarter last year.

Microsoft Corporation ((MSFT)) slumped 2.8% or $1.33 to $45.94 after the software products and services reported revenues in the fourth-quarter ending in June declined 5% to $22.18 billion from a year ago period.

Net in the quarter swung to a loss of $3.20 billion or 40 cents per diluted share compared profit of to $4.61 billion or 55 cents from the same quarter last year.

For the quarter, the company recorded impairment charge of about $7.5 billion related to write-down of Nokia Devices and Services acquisition and $780 million restructuring charge due to job cuts.

Microsoft said devices and consumer segment revenue plummeted 13% to $8.7 billion and total Xbox revenue climbed 27% but surface revenue soared 117% to $888 million. Cloud revenues surged 88% and while phone hardware revenue plunged 38%.

Whirlpool Corporation ((WHR)) soared 5.6% or $9.26 to $175.48 after the home appliances maker net sales in the second-quarter ending in the June jumped 11.2% to $5.21 billion from a year ago period.

Net income in the quarter fell 1% to $177 million or $2.21 per diluted share compared to $179 million or $2.25 from the same quarter last year.

Whirlpool forecasted net earnings per share for the year in the range of $9.50 to $10.50.

Yahoo! Inc ((YHOO)) decreased 1.3% or 37 cents to $39.36 after the internet search services provider said revenues in the second-quarter ending in the June soared 14.8% to $1.24 billion from a year ago period.

Net in the quarter swung to a loss to $21.6 million or 2 cents per diluted share compared to profit of $269.7 million or 26 cents from the same quarter last year.