Two tech titans are tumbling and taking world markets with them. They're Microsoft(MSFT) and Google (GOOG) which both missed their earnings estimates. Microsoft has been down as much as 7%, and Google has shed well over 3% the companies reported after yesterday's closing bell. Microsoft made 66-cents a share when estimates were for 75-cents. Revenue was $19.9 billion short of the consensus for $20.73 billion. Google made $9.56 a share versus estimates of $10.78. Revenue was $300 million short at $14.1 billion.
Now we look at some of the biggest companies to come out with earnings this morning. First is Schlumberger (SLB) which absolutely blew away estimates making $1.57 a share when consensus was for $1.10. That stock is currently up about 4%. Also out this morning is GE (GE) which beat on the bottom line, posting 36-cents a share, a penny above estimates. It did however, miss on revenue. And it's a similar story with Honeywell (HON). That company also beat on earnings with $1.28 a share versus estimates for $1.21 though it missed ever so slightly on revenue.
Motown's latest record is about the blues. The motor city has become the largest U-S municipality ever to file for Chapter 9 bankruptcy protection. While the big three automakers have been enjoying a bit of a revival, Detroit itself has fallen into crippling debt. There's no exact tally yet on the shortfall, but it's said to be at least 18-billion dollars. Part of the problem: the city spent $100 million dollars more than it took in every year since 2008. It has reached an agreement with some creditors to pay 75-cents on the dollar, but other negotiations have stalled. By the way, in a related story, Moody's has raised its outlook on the U-S to stable from negative, and is affirming the nation's triple-A rating.
There's new talk of a cable hookup. Bloomberg reports that Charter Communications(CHTR) is readying another bid for its bigger rival Time Warner Cable(TWC) Bloomberg says Charter has been working with Goldman Sachs to put together a proposal. Charter previously approached TWC about a takeover two months ago, but was rebuffed. Time Warner Cable leapt more than 5% in after-hours trading on the report, adding to a yearly gain of 33%.
STOCKS TO WATCH
Whirlpool (WHR) has climbed nearly 4% in early trading after releasing quarterly earnings. The company missed estimates posting $2.37 a share excluding items. Expectations had been for $2.42. The appliance maker did however beat on revenue with $4.7 billion versus $4.67 billion. The story beyond the numbers here: Profits were up 75% from a year ago and Whirlpool is raising its full-year outlook, citing a rebound in sales worldwide. Shares of Whirlpool have underperformed the market in 2013 up 11%. But they're up about 75% since this time last year.
AMD (AMD) has been down more than 5% in early trading. The company actually beat estimates when it reported earnings after the bell. But it lost 9-cents a share when expectations were for a loss of 12-cents. Revenue was also better than expected at $1.16 billion. Like its larger competitor Intel, the company is suffering from a slump in PC sales. Nevertheless AMD is projecting revenue will rise 22% in the period now underway. Not counting the losses we're seeing this morning, shares of AMD are actually up 83% so far this year.
Chipotle (CMG) has been trading 5% higher on its quarterly report. Chipotle matched on earnings with $2.82 a share. But revenue was stronger than expected at $816.8 million. Perhaps of more importance was the improvement over last year when sales had yet to hit $700 million. The chain credits the increase to both an addition of locations and a boost in same-store sales. The move up puts Chipotle back in reach of $400-dollars a share where it was a year ago. The stock is also closing-in on its all-time high, set back in April of 2012.
Intuitive Surgical (ISRG) has been down 13% in the premarket. We highlighted this company earlier in the month when it warned of weak sales for its Da Vinci surgical robots. Now Intuitive also says it has gotten a warning letter from the FDA relating to inspection problems with the equipment. The news came as the company released earnings after yesterday's closing bell. It posted $3.90 a share when consensus was for $4.04. Revenue was also well under $600 million when it was supposed to be substantially above that. Even prior to this morning's losses shares were down 17% in the past month.
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