In its first quarterly report under new CEO Tim Cook, Apple posted fourth quarter earnings of $6.62 billion or $7.05 a share, up from $4.31 billion or $4.64 a share in the same period a year ago.  Despite the strong earnings growth, the result fell short of analyst estimates for earnings of $7.28 a share.

Revenue rose 39 percent in the quarter to $28.3 billion, but fell roughly a billion short of the $29.4 billion analysts had estimated.

iPhone sales, the most watched item in Apple’s product line, totaled 17.1 million units.  The figure fell well below the 20.3 million units analysts had forecasted.  The iPhone 4S became available shortly after the fourth quarter ended, which may have led to customers delaying purchases.

“Customer response to iPhone 4S has been fantastic, we have strong momentum going into the holiday season, and we remain really enthusiastic about our product pipeline,” said CEO Tim Cook.  In its first weekend, iPhone 4S sales topped 4 million, which marks a new record for the debut of any iPhone.

Apple’s iPad and Mac sales continued to build momentum in the fourth quarter.  iPad sales jumped 166 percent to 11.2 million, while Mac sales totaled 4.89 million, a 26 percent rise from a year ago.

Looking ahead, Apple said it expects first quarter earnings of $9.30 a share on $37 billion in revenue.  Both numbers topped analysts’ first quarter estimates for $9 a share on revenue of $36.7 billion

Shares of Apple were sold off aggressively in after hours trading, down 6 percent to $396.50.

Apple (AAPL) Fiscal Q4 Profit, Revenue Fall Short Of Estimates is a post from: Localized USA: Your Local News Source

The tech bellwether reported third quarter earnings of $3.84 billion or $3.19 a share, up from $3.59 billion or $2.82 a share in the same period a year ago.  Excluding onetime items, IBM earned $3.28 a share, which topped average estimates of analysts for $3.20 a share.

Revenue grew 8 percent to $26.2 billion in the quarter, from $24.3 billion last year.  The result was roughly in-line with estimates for $26.3 billion.   Signings, a widely watched metric at IBM were $12.3 billion, falling in the lower end of the $12 billion to $13 billion range analysts had expected.  Contract signings for services make up roughly 60 percent of IBM’s revenue.

IBM saw revenue growth decelerate in all three its business lines, with hardware sales posting the biggest slowdown as sales were up just 4 percent compared to the 17 percent rise a year ago.  Services revenue grew 8 percent compared to 10 percent growth last year. The company’s software business saw sales growth of 13 percent, down from the 17 percent growth posted a year ago.

IBM did report strong revenue growth in foreign markets, such as Brazil, India and China, which posted 19 percent growth.  Revenue in the U.S. posted a much more modest 1.3 percent rise, but was higher than the 0.4 percent gain seen in the third quarter last year.

Following the strong earnings, IBM raised its full-year 2011 earnings guidance to atleast $13.35 a share compared to earlier estimates for $13.25 a share.

Despite the bump, shares of IBM were sold off in after hours trading, down 3.8 percent to $179.30.

IBM (IBM) Q3 Profit Tops Estimates, Revenue Fails To Impress is a post from: Localized USA: Your Local News Source

The world’s largest internet search engine said third quarter net income totaled $2.73 billion or $8.33 a share, up from $2.17 billion or $6.72 a share in the same period a year ago.  Excluding items, such as stock options and tax benefits, the company posted adjusted earnings of $9.72 a share, easily topping estimates for $8.74 a share.  Analyst estimates generally exclude such one-time items.

Revenue totaled $9.72 billion in the quarter, up 33 percent from $7.29 billion last year.  After subtracting payments to ad partners, Google’s net revenue totaled $7.51 billion, compared to $5.48 billion in the prior year.  The result topped estimates for net revenue of $7.2 billion.

Google reported that more than half its revenue came from outside the U.S. as international business made up 55 percent of total revenue.  Google owned sites generated $6.74 billion or 69 percent of total revenue, while network revenue from Google’s partners totaled $2.6 billion or 27 percent of revenue.

Paid clicks, a widely watch metric for Google, rose 28 percent compared to the third quarter a year ago. Paid clicks relate to ads served on Google sites or those of its partners.

The amount Google paid for each click rose in the quarter with average cost-per-click increasing 5 percent from last year.

“We had a great quarter,” said Larry Page, CEO of Google.  “Google+ is now open to everyone and we just passed the 40 million user mark. People are flocking into Google+ at an incredible rate and we are just getting started!”

Google also continued it torrid hiring pace adding 2,585 employees in the quarter, bringing its total staff to 31,353.

Shares of the company are trading 6 percent higher in afterhours action to $591.25.

Google (GOOG) Q3 Profit Tops Estimates As Revenue Soars is a post from: Localized USA: Your Local News Source

The fast food conglomerate reported third quarter earnings of $383 million or 80 cents a share, up from $357 million or 74 cents a share in the same period a year ago.  Excluding one-time items, the company earned 83 cents a share, topping average analyst estimates for 82 cents a share.  Analysts generally exclude one-time items from estimates.

Revenue grew to $3.27 billion in the quarter, from $2.86 billion last year.  The increase was driven by robust growth in China where sales jumped 29 percent as the company continues to expand in the country.  Existing locations also did well, with same-store sales up 19 percent in China.

The U.S. did not fare nearly as well for Yum! as sales declined 3 percent in the period.  Same-store sales were also down 3 percent in the U.S., which was slightly steeper than the 2.9 percent decline analysts had predicted.

Yum! said it opened 331 new restaurants in the third quarter, with 138 of those locations being in China.  The company plans to have 600 new locations by the end of the year as it continues to aggressively expand internationally.  Worldwide, Yum! has 37,900 locations, 19,000 of which are in the U.S.

Looking ahead, the company reaffirmed its targeted earnings growth of 12 percent or more.

Shares of Yum! are trading 1.6 percent lower in after-hours action after closing 2 percent higher for Tuesday’s session.

Yum! Brands (YUM) Q3 Profit Tops Estimates On Strong Growth In China is a post from: Localized USA: Your Local News Source

The memory chipmaker reported a net loss of $135 million or 35 cents a share in the fourth quarter, compared to a net profit of $342 million or 32 cents a share in the same period a year earlier.  The result was well short of analyst estimates, which called for a profit of 1 cent a share.

Revenue dipped 14 percent in the period to $2.14 billion, down from $2.49 billion last year.  The decline was slightly less than expected as analysts estimated sales of $2.11 billion for the quarter.

Sales of DRAM products were the main drag on revenue, down 12 percent in the period.  However, NAND Flash products posted 11 percent sale growth as a 40 percent jump in volume offset a declining average selling price.

Micron reported a decline in consolidated gross margins to 15 percent in the fourth quarter, from 22 percent in the third quarter.  The contracting margin was due to significant declines in average selling prices of DRAM, according to the company.

For fiscal 2011, Micron reported net income of $167 million or 17 cents a share, well off from the $1.85 billion or $1.85 a share in fiscal 2010.  Revenue totaled $8.8 billion in 2011, up slightly from $8.5 billion in 2010.

Micron also gave an update on its Rambus (RMBS) antitrust case, stating the trial phase that was heard in the San Francisco Superior Court ended on September 21 and the jury is still deliberating the verdict.  The company is unable to predict the outcome of this suit and the impact on financial results if an unfavorable outcome is reached.

Shares of Micron are trading 2.7 percent lower in after-hours action to $5.71.  Shares finished Thursday’s session down 4 percent.

Micron Technology (MU) Posts Fiscal Q4 Loss On Falling Revenue, Margins is a post from: Localized USA: Your Local News Source

The company reported fourth quarter earnings of $792 million or 87 cents a share, up from $470 million or 49 cents a share in the same period a year earlier.  Excluding one-time gains, earnings were 57 cents a share.  The result topped analyst estimates for 55 cents a share.  Estimates normally exclude one-time items.

Revenue grew to $18 billion in the period, finishing slightly ahead of analyst estimates for $17.9 billion.  Sales were helped by a 1.6 percent increase in overall store traffic in the fourth quarter.

Same-store sales rose 4.4 percent in the fourth quarter, while same-store prescriptions were up 3.4 percent.  The prescriptions figure could be hurt in coming quarters as Walgreens plans to end its partnership with Express Scripts, which helps it generate about $5.3 billion in sales annually.

Walgreens has previously said it would end its deal with Express Scripts once the contract expires at the end of the year.  However, they have remained in communication with the company, though no real progress on a new contract has been made.

Currently, Walgreens fills one in five prescriptions in America, filling 819 million in prescriptions in fiscal 2011.  That marks a 5.3 percent increase compared to the year earlier.

“Walgreens delivered strong performance and growth for the quarter and the year by continuing our relentless focus on providing convenience and value to consumers, and cost-effective pharmacy, health and wellness solutions to the millions of patients we serve every day,” said Walgreens President and CEO Greg Wasson.

For fiscal 2011, the company reported earnings of $2.94 a share on revenue of $72.2 billion.  Revenue increased 7.1 percent year-over-year.

Walgreens (WAG) Fiscal Q4 Profit Tops Estimates, Shares Dip On Express Scripts Contract Talks is a post from: Localized USA: Your Local News Source

The August result marked an annual sales pace of 295,000 homes, which was basically in-line with average economist estimates.  However, it did mark the fourth consecutive month of sales decline.

According to the report sales fell in three U.S. regions.  The Midwest was able to buck the trend posting an increase of 8.2 percent.  The Northeast saw the largest decline, down 13.6 percent, followed by the West and South with a 6.3 percent and 2.4 percent drop, respectively.

Despite being lower from a month ago sales did finish 6.1 percent higher year-over-year; August 2010 sales totaled 278,000.

Based on the August sales pace and current inventory, a 6.6 month supply of new homes exists in the market.

Average sales price continued its downward trend settling at $209,100 for the month, marking a 7.7 percent drop from a year ago.  Selling prices for new homes have been pressured lower as builders try to complete with lower prices from existing homes, which are generally lower due to foreclosure properties.

KB Home (KBH) announced fiscal third quarter results last week that showed a 26.7 percent revenue decline to $367.3 million.  Revenue has declined the past four quarters for the homebuilder.

The outlook for the housing market and homebuilders has not improved as many had hoped with historically low mortgage rates doing little to motivate buyers.

The rate on a 30-year fixed mortgage fell below 4 percent last week after the Federal Reserve said it would use proceeds from its mortgage bond holdings to make additional purchases.

U.S. New Home Sales Continue Slide In August is a post from: Localized USA: Your Local News Source

The shoe and apparel giant said first quarter earnings were $645 million or $1.36 a share, up from $559 million or $1.14 a share in the same period a year ago.  The result easily topped analyst estimates for $1.21 a share.

Revenue totaled $6.08 billion in the period, up 18 percent from 5.1 billion last year.  Excluding impacts from currency translation, Nike said revenue grew 12 percent.  The result topped analyst estimates for revenue of $5.75 billion.

Nike’s equipment sales were particularly strong, up 24 percent to $342 million.  Footwear, the company’s main sales driver, rose 19 percent to $3.34 billion.  Sales of apparel grew 16 percent to $1.59 billion in the period.

The company said revenue grew in every region of the world except Western Europe where sales were flat as they faced tough comparisons due to the World Cup last year.

Worldwide futures orders, a key metric tracked by analysts, scheduled for delivery between September 2011 and January 2012 totaled $8.5 billion, up 16 percent from the same timeframe a year earlier.

 “We’re off to a strong start in fiscal year 2012. We have a powerful and diverse portfolio of brands and businesses, and we’re focused on leveraging them to drive growth and create value for our shareholders,” said Mark Parker, Nike President and CEO.

Nike did see a dip in first quarter gross margin to 44.3 percent from 47 percent last year due to higher production costs and product discounting.

Shares of Nike are trading 5 percent higher in after-hours action to $88.45.

Nike (NKE) Fiscal Q1 Profit Tops Estimates On Strong Global Sales is a post from: Localized USA: Your Local News Source

The home furnishings retailer said second quarter earnings were $229.4 million or 93 cents a share, up 33 percent from $181.8 million or 70 cents a share in the same period a year earlier.  Analysts had been calling for 84 cents a share.

Bed Bath & Beyond has seen profit grow by double digit percentage points for three straight quarters now.

Revenue grew to $2.31 billion in the period, which was in-line with analyst estimates.  Same-store sales rose 5.6 percent from last year.

Bed Bath & Beyond saw a marginal increase in gross margin as expenses were 8 percent higher in the period.

The company said sales for the first half of the year were up 9 percent to $4.4 billion from $4.1 billion

Looking ahead, the company expects fiscal third quarter earnings in a range of 82 cents to 87 cents a share, which is up from previous guidance of 77 cents to 82 cents a share.  Average estimates are calling for 86 cents a share.

As of August 27, 2011, the Company had a total of 1,155 stores, including 986 Bed Bath & Beyond stores, 70 Christmas Tree Shops and 54 buybuy Baby stores.  Three new Bed Bath & Beyond locations were opened in the second quarter, while one was closed. Seven Christmas Tree Shops and four buybuy Baby stores were closed in the period.

Shares of Bed Bath & Beyond are trading 1.9 percent higher in after-hours action to $58.69.

Bed Bath & Beyond (BBBY) Fiscal Q2 Profit Tops Estimates, Raises Guidance is a post from: Localized USA: Your Local News Source

The business software giant said first quarter earnings were $1.8 billion or 36 cents a share, up from $1.35 billion or 27 cents a share in the same period a year ago.  Excluding one-time items, the company earned $2.5 billion or 48 cents a share.  The result topped estimates as analysts were expecting 46 cents a share. Estimates generally exclude one-time items.

Revenue grew 12 percent in the period to $8.37 billion, topping estimates for $8.35 billion.  New software licenses were the main driver as sales rose 17 percent to $1.5 billion.  Hardware was a laggard as sales declined 5 percent in the period to $1 billion.

“Our high-end server business – Exadata, Exalogic, and SPARC M-Series – delivered solid double digit revenue growth in Q1,” said Oracle President Mark Hurd. “In contrast, revenue declined in our low-end server business”

The company was able to increase its gross margin on hardware sales to 54 percent from 48 percent, despite the dip in sales.

Oracle’s sales have held up well in recent quarters considering many of its corporate customers have slashed their IT budgets.  However, the economic turmoil in Europe could become problematic if conditions continue to deteriorate.  Roughly 30 percent of Oracle’s sales are in Europe.

Oracle also announced that its Board of Directors approved a quarterly cash dividend of 6 cents a share.  The dividend will be paid to shareholders as of October 12 with a payment date of November 2.

Shares of Oracle are trading 1.4 percent higher to $28.74 in after-hours action after falling 2.3 percent during Monday’s session.

Oracle (ORCL) Fiscal Q1 Profit Tops Estimates On Licensing Sales is a post from: Localized USA: Your Local News Source

The soup and snack company said fourth quarter profit totaled $100 million or 31 cents a share, down from $113 million or 33 cents a share in the same period a year earlier.  The company said excluding one-time costs for planned restructuring, earnings were 43 cents a share, which topped analyst estimates for 38 cents a share.  Analysts generally exclude one-time charges from estimates.

Revenue totaled $1.61 billion in the period as Campbell’s Global Baking and Snacking unit saw sales rise 17 percent to $559 million.  Sales of Pepperidge Farm products helped pushed the unit.

Sales were also strong for the International Simple Meals and Beverages unit, rising 12 percent to $316 million.  The U.S. Simple Meals unit did not fare as well with sales slipping 8 percent to $431 million.  Sales of “Campbell’s” condensed soup were the real drag for the U.S. unit, down 10 percent in the period.

U.S. beverage sales held up a bit better, but were down 1 percent to $176 million.  The unit actually saw a 3 percent rise in volume and mix, however, increased promotional spending offset those gains.  Campbell’s launch of “V-Fusion + Tea” helped push beverage volumes.

“Significant cost inflation and increased promotional spending depressed beverage profits in the quarter,” said President and CEO Denise Morrison.

Earnings for fiscal 2011 totaled $805 million or $2.42 a share.  Excluding restructuring costs, earnings were $846 million or $2.54 a share.  Both adjusted and unadjusted results were down from 2010.

Sales for the year rose 1 percent to $7.72 billion.  Volume and mix were down 1 percent, while price allowances coupled with promotional spending reduced sales by 2 percent. Campbell’s saw a 2 percent benefit from currency translation.

“We’re pleased to be finishing a very difficult fiscal year with some positive momentum and a new strategic direction. Fiscal 2012 will be a year of transition, as we build the foundation for a new Campbell with a renewed focus on meeting consumers’ needs,” said Morrison.

The company plans to debut 27 soup products in fiscal 2012, up from 3 in the prior year.

Campbell Soup (CPB) Q4 Profit Tops Estimates On Strong Sales Overseas is a post from: Localized USA: Your Local News Source

The impact of the news spread throughout the financial sector as investors worried regulators would ask other big banks to review their foreclosure processes; a topic that is already sour with the public following the robo-signing scandal.

The financial sector, which has led stock higher the previous four sessions, finished Thursday 2.3 percent lower, making it the largest S&P 500 laggard on the session.

According to the Federal Reserve’s orders, Goldman Sachs is required to hire an independent consultant to review foreclosures at the Litton Loan Servicing; a unit that Goldman is currently selling. 

Goldman reached an agreement Thursday with the New York Financial Services Superintendent that will allow the $264 million sale of the business to Ocwen Financial Corp go through.   However, this agreement does not free Goldman of investigations of past actions at Litton Loan Servicing.

The Fed stated that monetary penalties would be handed down if wrongful foreclosures were found by the consultant and occurred between 2009 and 2010.

Additionally, any borrower wrongfully foreclosed on would have to be reimbursed by the bank.

The investigation and potential penalties comes just a year after Goldman Sachs paid $550 million to settle charges from the Securities and Exchange Commission of civil fraud.

Elsewhere, Goldman Sachs cut its forecast for new jobs in August to just 25,000.  The Labor Department is set to release nonfarm payrolls for August along with the unemployment rate on Friday morning.

Goldman Sachs (GS), BofA (BAC), Citigroup (C) Fall More Than 3 Percent On Foreclosure Worries is a post from: Localized USA: Your Local News Source