Both Ford (F) and Boeing (BA) are all revved up this morning on strong earnings. Ford stock is up almost 3% after reporting earnings of 45-cents a share. Expectations were for 37-cents. Revenue also beat, topping $36-billion. As for Boeing, it's up more than 2% to an all-time high after posting earnings of $1.67 excluding items, 9-cents better than estimates. Revenue also climbed higher than expectations. Equipment-maker Caterpillar (CAT) seems stuck in the mud. It missed earnings estimates by a quarter on revenue that also fell short of hopes. Also reporting this morning was Pepsi (PEP), which had a nice beat: earnings of $1.31 a share compared to estimates of $1.19. Revenue was also slightly above consensus.
Apple (AAPL) is looking more delicious this morning. The stock has been trading up more than 4% in early trading here. The move follows the company's earnings report which was released after yesterday’s closing bell. Apple made $7.47 a share beating estimates of $7.32. Revenue also topped expectations at $35.3 billion. But compare the numbers to last year when earnings were nearly $2 more a share on similar sales. So, what exactly is going on? And how badly does the company need the next big thing? Yahoo! Finance Senior Columnist Mike Santoli has more in the video above.
AT&T (T) broke a common pattern we've been seeing this earnings season. It missed on earnings but beat on revenue. The company reported after the closing bell, posting profits of 67-cents a share, a penny under estimates. Revenue however surprised coming in on the north side of $32-billion. Bottom line: revenue benefited from growth in the wireless and enterprise businesses. But profits were hurt by subsidies of smartphones. Shares of AT&T are up an underwhelming 2% so far this year.
There are a number of other significant headlines this morning, Dell (DELL) has postponed a vote that was supposed to take place today on a leveraged buyout offer. That's because founder Michael Dell and Silver Lake Management are now proposing changes to the voting process. They want abstentions excluded form the tally instead of counted against their effort. In addition Dell and Silver Lake have increased their offer to $13.75 a share from $13.65. The vote is now set to take place August 2nd.
In other news, there are multiple reports the feds are preparing to announce criminal charges against hedge fund SAC. The word is that founder Steven A Cohen will not be charged personally. Also today, underwear maker Hanesbrands (HBI) is buying lingerie company Maidenform (MFB) for $575-million. Finally, the Washington Post reports that Larry Summers is now the frontrunner to replace Ben Bernanke as Fed Chairman.
STOCKS TO WATCH
Facebook (FB) reports earnings after the closing bell. The company stock has done well of late, up 9% over the last month. However it's still down about 7% year-to-date as it searches for ways to monetize its billion-plus user base. Over the weekend the company announced it now has 100-million people using its mobile app, an encouraging sign in the larger shift away from desktops to mobile. The challenge remains integrating ads on smaller screens. Facebook is expected to post earnings of 14-cents a share up from 12-cents a year ago on $1.62 billion in revenue which would be more than a-third higher than last year's figure of $1.1.8 billion.
Motorola Solutions (MSI) reported this morning and is now trading almost 2% lower. The company missed on both the top and bottom lines. Earnings were 94-cents a share, a dime below estimates. and revenue was $2.1 billion, about $30-million short. Motorola shares are up a relatively modest 7% this year. That's largely because they took a 14% plunge after last quarter's report.
Broadcom (BRCM) has been down more than 5% since yesterday's close on top of a 4% drop during the regular trading day. The chipmaker beat earnings estimates with its quarterly report, posting 70-cents a share excluding items. Revenue missed slightly at $2.09 billion. Of more importance, the company lowered guidance for the current period. Prior to the report Broadcom shares were down about 8%. They're up about 3% since this time last year.
VMWare (VMW) is up 12% this morning. The software company just edged past estimates with its quarterly report, posting profits of 79-cents a share on revenue of $1.24 billion. But it also upped its guidance for the quarter now underway. Shares are down 24% year-to-date largely on a 21% plunge after the company issued its first quarter results.