Sat, May 26, 2012, 11:37 AM EDT - U.S. Markets closed

A look at recent tech-industry earnings

What recent tech industry earnings reveal about the state of spending and the economy

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Here is a summary of recent earnings and reports for selected technology companies and what they reveal about the state of spending and the overall economy:

April 6: Samsung Electronics Co. says it is expecting a record operating profit of $5.1 billion for the first quarter. It says the result would be a 97 percent rise from its operating profit a year earlier. Samsung estimated that its first quarter sales rose 21.6 percent from a year earlier. More details will come when Samsung releases its full quarterly results.

April 12: Google Inc. reports adjusted earnings and adjusted revenue that beat expectations. Google's revenue was helped by a 39 percent increase in "paid clicks," but the prices of its search-driven text ads continued to decline. CEO Larry Page called the first quarter "very strong," but acknowledged there's more work to do.

April 17: Yahoo Inc.'s first-quarter earnings show signs of modest progress under recently hired CEO Scott Thompson. Net income grew 28 percent from the same time last year and exceeded expectations. Revenue grew less than 1 percent, but represented a breakthrough because the company's revenue has been steadily falling for years.

IBM Corp. says first-quarter net income grew 7 percent, helped by strong profit margins in its services business and strong revenue growth across its software and services businesses. Revenue was flat overall because of declines in the hardware and financing segments, and revenue fell short of analysts' expectations. IBM increases its full-year guidance to at least $15 per share, above the $14.93 expected by analysts.

Intel Corp. says its net income in the first quarter fell 13 percent as spending on research and marketing rose while sales were flat.

April 18: EBay Inc. says its first-quarter net income grew 20 percent thanks to higher revenue from its PayPal business and brisk sales at its e-commerce websites. The results beat Wall Street's expectations.

Mobile phone chipmaker Qualcomm Inc. says its quarterly profit more than doubled as strong demand for smartphones boosted its sales; but it expects costs to increase as it makes more chips.

April 19: Microsoft Corp. fares better than analysts anticipated in its latest quarter, boosted by a surprising rise in sales of its Windows operating system for personal computers

Chipmaker Advanced Micro Devices Inc. reports adjusted earnings and revenue that beat Wall Street's expectations. AMD's revenue forecast for the current quarter was at $1.59 billion to $1.68 billion, while analysts surveyed by FactSet were expecting $1.59 billion.

Nokia Corp. reports a huge net loss, one of the company's worst ever quarters, and blames tougher-than-expected competition. It has faced stiff competition from the likes of Apple Inc.'s iPhone and handset makers using Google Inc.'s popular Android software.

April 23: Netflix Inc. says it suffered its first quarterly loss in seven years, but the setback was far smaller than analysts expected. Netflix had rising licensing fees and a bill for an international expansion. Netflix predicted that it would make money during the current quarter. Still, Wall Street was worried about tougher competition. Skittish investors keyed on a second-quarter forecast that calls for a slowdown in subscriber growth during the spring and early summer.

Chipmaker Texas Instruments Inc. says first-quarter net income fell 60 percent from a year ago as revenue shrank. But the results still beat analysts' expectations.

Xerox Corp. says first-quarter net income fell 4 percent as the company spent more on building its services business, which now makes up more than half the company's revenue. The company says it's investing in new offerings and long-term contracts in order to increase growth. In the short term, that has hurt profitability.

April 24: Apple Inc. reported blowout iPhone sales — 35 million in the latest quarter, almost twice as many as it sold a year ago and above analyst expectations. Net income nearly doubled to $11.6 billion, and revenue was up 59 percent at $39.2 billion. IPad sales came in below analyst expectations, at 11.8 million units. But that was still two and a half times as many as it sold in the same quarter a year ago.

April 25: Motorola Solutions Inc., which sells communications equipment to government and corporate customers, says first-quarter net income declined from a year ago, when the company recorded a large tax-related gain. Revenue grew thanks to strong demand from the company's government customers.

April 26: Amazon.com Inc. reports strong quarterly earnings and says its Kindle Fire tablet computer remains its best-selling item. However, its outlook for revenue growth was slower than expected.

Online games company Zynga Inc. reports adjusted earnings of 6 cents a share, a penny better than what Wall Street expected. Revenue grew 32 percent.

April 27: A surge in Galaxy smartphone sales fueled earnings at Samsung Electronics to a record high in the first quarter, usually a tough season for the global consumer-electronics industry. The South Korean company outshined handset rivals such as Nokia Corp. Strong demand for high-end smartphones, such as the Galaxy Note and the Galaxy S2 introduced last year, helped mask lower profit from memory chips, another Samsung flagship business.

May 1: Mobile phone maker Motorola Mobility Holdings Inc. reports a slightly larger net loss in the first quarter as expenses grew more than revenue. Motorola says it still expects its acquisition by Google to close by the end of June. The deal still needs to be approved by authorities in China.

May 3: LinkedIn Corp. says its first-quarter net income more than doubled, and its revenue doubled from a year ago. Adjusted profit and revenue beat expectations. During the quarter, revenue grew across the company's divisions. The business-networking company also announces plans to buy presentation-sharing website SlideShare for $118.8 million.

May 9: Cisco Systems Inc. says its quarterly earnings surged 20 percent in the latest sign that a recently completed overhaul is paying off for the world's largest maker of computer-networking equipment. However, Cisco raised the specter of a sharp slowdown in technology spending, rattling investors already fretting about the economy's fragile condition. Cisco made a sobering forecast for the current quarter and traced it to skittish customers who are waiting longer to close deals and spending less money because of growing uncertainty about the economy, particularly in Europe and India.

May 14: Online deals company Groupon Inc. says it had a smaller net loss and sharply higher revenue in the first quarter, helped by increased demand from a growing customer base.

May 17: Salesforce.com Inc., which makes Web-based business software, says it had a net loss in the first quarter, but adjusted profit and revenue beat expectations. It raises its forecast for full-year results.

Tuesday: Dell Inc. reports disappointing first-quarter results and forecasts weak sales in the current quarter. The computer maker says sales to big businesses, consumers and the public sector decreased.

Wednesday: Hewlett-Packard Co. says it will cut 27,000 workers, or 8 percent of its work force, by October 2014. News of the cutbacks overshadowed the release of HP's latest quarterly results. The company's earnings and revenue were both better than analysts projected.

Coming up:

June 19: Adobe Systems Inc.

June 28: Research in Motion Ltd.

Not yet known: Oracle Corp. (June).

 

14 comments

  • Erik  •  1 month 4 days ago
    tewt
    • Erik 1 month 4 days ago
      That went right over your head and still you have nothing. Shocker.
    • Erik 1 month 4 days ago
      your empty excuse
    • Erik 1 month 4 days ago
      test
  • Randy  •  Massillon, Ohio  •  2 months ago
    Sector rotation is starting. Tech stocks getting sold. SELL before hedge funds do. Take money off the table. Sell AAPL. Asia cut growth forecasts today.
  • James  •  Toronto, Canada  •  3 months ago
    America has abandoned the inferior and cost-ineffective Research In Motion. Rim is trying to be a cheap third world dumbphone manufacturer competing with Hwawei and ZTE, and Rim will lose out within a few quarters. Rim will go out of business soon.
  • D  •  3 months ago
    maybe if the pompous CEO of Netflix wouldn't insult Americans by saying "they don't care if I increase the price" and not increase the price outside of the US (like he said it wouldn't do to Canada), then he may not have ended up looking like a fool. Jackbutt....he needs to feel the pain.
    • Oracle 3 months ago
      I'll never subscribe to Netflix.
  • MPJ  •  Newark, New Jersey  •  3 months ago
    Keep your eye on IBM stock prices.

    IBM has some hidden baggage - the IBM PONZI RICO trial !

    Details and links --

    www.ibmTheWidowMaker.com

    Twitter -- www.Twitter.com/ibmMourningDay
  • James  •  Toronto, Canada  •  3 months ago
    Research In Motion is mainly a keyboard for texting, email with some security. Blackberrys are technologies from the 1990s unable to meet needs of this century. QNX BB 10 is from technologies from the 1980s. This is the reason why QNX BB 10 cannot compete against iOS, Android and Windows Phone which are technologies from the 2010s.

    Rimm share price should drop to the low single digits accordingly as Research In Motion is really a company stuck in the 1990s.
  • James  •  Toronto, Canada  •  3 months ago
    Apple Siri is developed on C/C++ limiting its ability to learn as an artificial intelligent being, Apple needs to use Lisp or Prolog instead. Siri beta is exhibiting limited intelligence but even that is a lot more intelligent than most robots in factory and laboratory settings. Apple is enhancing Siri's intelligence whereas Google is improving its Voice app which is command processing, rather like a compiler language syntax checker instead of intelligence. Comparison between Siri and Google Voice is comparing a person to a dictionary, they cannot compare. Siri is an active learner using dictionaries whereas a dictionary can be edited but a dictionary does not perform any learning activities. People dialog with persons, but people do not dialog with dictionaries, people search dictionaries only.
  • James  •  Toronto, Canada  •  4 months ago
    Apple Siri is the foundational game changer to the entire world in the human/machine relationship. No longer will machines behave in the unnatural ways through monitor screens, keyboards, mice, and touchscreens, instead, the way humans communicate with machines, namely Apple machines, will be through our very own mother tongues such as English, French, German, Chinese (Mandarin or Cantonese), Italian, Russian, etc. and the symbols we use will be our very own cultural or scientific symbols and idioms.

    Apple is the only company in the universe who can enable this foundational change in the human/machine relationship, and in doing so, all the new technologies from Apple will completely displace what are currently in use in very fundamental ways. This is a significant event that I am calling it 'The Sixth Generation', by Apple Inc.
    • A Yahoo! User 3 months ago
      Apple is garbage and over valued....siri is a joke and even the heads of apple say it is getting even dumber and can't do things it used to. Google voice is way more accurate and their phones are far superior I. Terms of specs performance and hardware
    • James 3 months ago
      Are you still using DOS version 6.2.2? Only garbage call what they do not understand garbage, you are just as dumb as whoever you claim to say that Apple Siri is a joke, cause it is not a joke at all, Apple Siri is the immediate future of the computing world, is that a joke to you also? I guess so.
    • Rick 29 days ago
      Hey Springfield...if you like Google Voice, Great keep buying those phones! For me I agree with James. SIRI will get better and wil be the basis for all Apple platforms. I can't wait to tell my TV to do something and have SIRI tell me ok! You don't yet appreciate what the brilliance is behind SIRI and where she is going! As Jobs said he figuired it out before he died and Siri is it!
  • James  •  Toronto, Canada  •  4 months ago
    Rim foretelling its own sharp drop in sales will not save itself from being ditched much much further.
  • James  •  Toronto, Canada  •  4 months ago
    Big drops in tech and consumer spending coupled with gargantuan competition pressures will force Rim out of business this year.
    • Gambrinus 4 months ago
      you must be infothathelps ... RIM makes money, so get prepared, buy your 2012 stash of Prozac
  • Nick  •  5 months ago
    ADBE will get smashed next quarter..don't get get too excited...anyhow..the results are not great....and given the next harshed quarter, not a buy right now,,,just hold...
  • Jon E  •  5 months ago
    Netflix may again gain 1 more subscriber this year but will lose millions after their Starz contract expires next month.
  • M.S.  •  5 months ago
    AMD did better and also cut its workforce recently which means margins for them will GREATLY improve.... Intel is doing fine, IBM and Apple of course are doing well and Yahoo will probably et bought within a year. Nothing wrong with buying some of all these stocks and I would just buy INTEL AND AMD out of the chip stocks. AMD is only 5.50!!!!! It wont be there in 2 years -for sure....
  • fauxscot  •  5 months ago
    Apple exceeded its forecast, which is not a failure or a miss. Clearly report this as "Apple analysts, most of whom reliably underestimate Apple earnings and revenues, over-estimated both earnings and revenues. This is probably due to 12 quarters of increasingly embarrassing analyst performance."

    Frankly, I'm pretty tired of reading lies in the press. I expect it in politics, not business.

    Shameful.
    • James 4 months ago
      Apple's undercover Siri development is a major disruption to the current computing model still using the archaic keyboard and mouse user interface. Siri 2.0 should be vast displacements of keyboard/mouse computing and mobile devices entirely at the expense of Research In Motion and Microsoft, as great majority of computer and mobile developers will migrate to the Apple Siri platform to develop brand new client apps which will deploy the new Siri APIs, and new server (SAP ABAP programs included) transactions, dialogs and screens, pages, windows and views which will be using Siri components for I/O. Since human level of abstractions instead of icon based elements will be in use, the power and flexibilities of the apps will be exponentially more powerful and real world than any system or applications that are currently in use, this is a far departure from the MVC pattern which is based on visual elements inherited from the Xerox Alto Parc project which formed the desktop metaphor back in the 1970s extended into even the Windows, Mac, and iOS interface. Apple Siri will initiate a totally different machine/human user interface that's vastly more powerful, elegant, natural through the use of human mother tongue languages, cultural idioms, and extremely efficient verbal communications, extreme flexibility, and for the first time allows for multiple concurrent input and output streams and media. This Apple Siri significance is a bonafide Sixth Generation computer revolution that redefines the relationship between humans and machines vastly more significant than the Japanese Fifth Generation computer revolution which brought us the factory robots, and big huge Business Intelligence reports and decision making supports. I am developing for the Apple Siri, eagerly awaiting its availability.
    • James 4 months ago
      Apple Siri: gateway to the next generation of machines that think, process, access information, and engage in fully natural conversations with us humans on human terms, whatever 'human' is.
 
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