Samsung warned this morning that it sees a weak first half of the year on rapidly slowing growth in its mobile business. The company reported fourth quarter results, including profit growth of 3.7%, a steep slowdown from the third quarter's 25.6%. The company also said it expects competition in smartphones to become even more fierce. The report comes ahead of Apple's (AAPL) earnings, which are expected after the bell Monday. Investors are expecting Apple to see iPhone shipments increase based on its deal with China Mobile, the world's largest carrier. Shares of
Microsoft (MSFT) spiked after the software giant reported earnings yesterday of $0.78 a share, beating expectations by $0.10 while revenue rose 14%. The earnings were boosted by strong sales of its software and services for businesses as well as the sale of 7.4 million XboxOne consoles during the holiday season and the doubling of sales of its Surface tablet. The good news overshadowed the fact that the company is still without a replacement for CEO Steve Ballmer, who is stepping down this year.
Starbucks (SBUX) late yesterday reported better-than-expected earnings. Profits rose 25%, beating estimates by $0.02. While revenue also increased, up 12%, it missed analysts’ estimates. Same store sales rose 5%, which was slower than in the previous quarter and missed expectations as well. The CFO indicated in an interview with CNBC that traffic was hurt during the holidays by the increase in online shopping. The slower holiday season growth did not stop Starbucks from raising its earnings guidance for 2014 though.
E*Trade (ETFC) reported its highest earnings results in seven quarters, beating estimates by a penny. Revenue also beat estimates, but did slip from the previous year, down 4%. It's been quite a comeback story for E*Trade which came incredibly close to collapse during the financial crisis after it attempted to sell mortgages and other credit products. Under new CEO Paul Idzik, E*Trade became one of the best performing stocks on a percentage basis in 2013. The stock was up close to 114% for the year. So far this year, shares of E*Trade are up more than 6%.
Proctor & Gamble (PG) reported earnings that beat estimates by a penny. Revenue rose 0.5%, but missed estimates. The household products maker was hurt by unfavorable currency movements and flat sales globally.