Apple Profit Tumbles as iPhone Sales Decline; Comcast Net Falls

Mukesh Buch
27 Jul, 2016
New York City

Apple net tumbled 27% as iPhone sales declined 15% but managed to sell more cheaper version of the recently launched phone model. Coca-Cola net surged 11% lifted revenue forecast. Comcast profit dropped 5%. General Dynamics net rose 1%. Hilton net soared 48%. Northrop Grumman net fell 3%.

[R]12:45 PM New York – Apple net tumbled 27% as iPhone sales declined 15% but managed to sell more cheaper version of the recently launched phone model. Coca-Cola net surged 11% lifted revenue forecast. Comcast profit dropped 5%. General Dynamics net rose 1%. Hilton net soared 48%. Northrop Grumman net fell 3%.[/R]

Tollbooth Index fell 23.24 or 0.2% to 11,004.46.

Earnings Review

Apple Inc ((AAPL)) soared 6.6% or $6.36 to $103 after the mobile phones and computer maker reported net sales in the third-quarter ending in June plunged 14.6% from a year ago to $42.36 billion.

Net income in the quarter tumbled 26.9% to $7.80 billion or $1.42 per diluted share compared to $10.68 billion or $1.85 per share from the same quarter last year.

Apple said iPhone sales declined 15% to 40.4 million and sold fewer iPad units, Mac computers and Apple Watches in the last quarter from the same period a year ago.

However, the mobile phone maker sold better-than-expected cheaper iPhone SE model, lifting the company stock. Apple in the latest quarter sold more SE model than the 6 or 6s models.

The Coca-Cola Company ((KO)) declined 3.3% or $1.50 to $43.37 after the non-alcoholic beverages maker said net revenues in the in the second-quarter ending in June dropped 5% from a year ago to $11.54 billion.

Net income in the quarter surged 11% to $3.45 billion or 79 cents per diluted share compared to $3.11 billion or 71 cents per share from the same quarter last year.

The beverages maker forecasted revenues in the year to increase about 3% and earnings per share to drop in the range of 4% to 7% from $2 reported in the same period a year ago.

Comcast Corporation ((CMCSA)) gained 1.2% or 78 cents to $67.97 after the broadcasting services provider reported revenues in the in the second-quarter ending in June rose 2.8% from a year ago to $19.27 billion.

Net income in the quarter slumped 5.1% to $2.03 billion or 83 cents per diluted share compared to $2.14 billion or 84 cents per share from the same quarter last year.

In the quarter, Comcast lost 4,000 video customers but performance improved from subscriber loss of 69,000 in the year-ago period and the best second-quarter performance in a decade.

Broadband revenue jumped 8.6% to $3.37 billion, as it added 220,000 broadband customers in the quarter compared to 180,000 a year earlier.

General Dynamics Corporation ((GD)) rose 56 cents to $145.07 after the aerospace and defense services provider stated revenues in the in the second-quarter ending in June slipped 2.8% from a year ago to $7.67 billion.

Net income in the quarter edged up 0.8% to $758 million or $2.44 per diluted share compared to $752 million or $2.27 per share from the same quarter last year.

Hilton Worldwide Holdings Inc ((HLT)) slumped 2.6% or 62 cents to $23.25 after the hotels and resorts operator said total revenues in the second-quarter ending in June jumped 4.5% from a year ago to $3.05 billion.

Net income in the quarter soared 48.4% to $239 million or 24 cents per diluted share compared to $161 million or 16 cents per share from the same quarter last year.

Northrop Grumman Corporation ((NOC)) fell 38 cents to $217.97 after the defense contractor stated revenues in the in the second-quarter ending in June rose 2% from a year ago to $6 billion.

Net income in the quarter slumped 2.6% to $517 million or $2.85 per diluted share compared to $531 million or $2.74 per share from the same quarter last year.

Northrop forecasted earnings per share in the year in the range of $10.75 to $11.