U.S. Markets closed

Facebook Reports Second Quarter 2017 Results

MENLO PARK, Calif., July 26, 2017 /PRNewswire/ -- Facebook, Inc. (FB) today reported financial results for the quarter ended June 30, 2017.

Founded in 2004, Facebook's mission is to make the world more open and connected. People use Facebook to stay connected with friends and family, to discover what's going on in the world, and to share and express what matters to them. (PRNewsFoto/Facebook, Inc.)

"We had a good second quarter and first half of the year," said Mark Zuckerberg, Facebook founder and CEO. "Our community is now two billion people and we're focusing on bringing the world closer together."

Second Quarter 2017 Financial Highlights


Three Months Ended
June 30,


Year-over-
Year %
Change

In millions, except percentages and per share amounts

2017


2016


Revenue:






   Advertising

$

9,164



$

6,239



47

%

   Payments and other fees

157



197



(20)

%

Total revenue

9,321



6,436



45

%

Total costs and expenses(1)

4,920



3,702



33

%

Income from operations(1)

$

4,401



$

2,734



61

%

Operating margin(1)

47

%


42

%



Provision for income taxes

$

594






Effective tax rate

13

%





Net income(1)

$

3,894



$

2,283



71

%

Diluted Earnings per Share (EPS)(1)

$

1.32



$

0.78



69

%



(1)

In the fourth quarter of 2016, we elected to early adopt Accounting Standards Update No. 2016-09, Compensation - Stock Compensation (Topic 718): Improvement to Employee Share-based Payment Accounting (ASU 2016-09). We were required to reflect any adoption adjustments as of January 1, 2016, the beginning of the annual period that included the interim period of adoption. As such, certain financial highlights data for the three months ended June 30, 2016 had been adjusted to reflect the impact of ASU 2016-09 adoption. See Note 1 — Summary of Significant Accounting Policies (Note 1) in the notes to our consolidated financial statements in our Annual Report on Form 10-K for the year ended December 31, 2016 for detailed adoption information.

Second Quarter 2017 Operational and Other Financial Highlights

  • Daily active users (DAUs) – DAUs were 1.32 billion on average for June 2017, an increase of 17% year-over-year.
  • Monthly active users (MAUs) – MAUs were 2.01 billion as of June 30, 2017, an increase of 17% year-over-year.
  • Mobile advertising revenue – Mobile advertising revenue represented approximately 87% of advertising revenue for the second quarter of 2017, up from approximately 84% of advertising revenue in the second quarter of 2016.
  • Capital expenditures – Capital expenditures for the second quarter of 2017 were $1.44 billion.
  • Cash and cash equivalents and marketable securities – Cash and cash equivalents and marketable securities were $35.45 billion at the end of the second quarter of 2017.
  • Headcount – Headcount was 20,658 as of June 30, 2017, an increase of 43% year-over-year.

Webcast and Conference Call Information

Facebook will host a conference call to discuss the results at 2 p.m. PT / 5 p.m. ET today. The live webcast of Facebook's earnings conference call can be accessed at investor.fb.com, along with the earnings press release, financial tables, and slide presentation. Facebook uses the investor.fb.com and newsroom.fb.com websites as well as Mark Zuckerberg's Facebook Page (https://www.facebook.com/zuck) as means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD.

Following the call, a replay will be available at the same website. A telephonic replay will be available for one week following the conference call at +1 (404) 537-3406 or +1 (855) 859-2056, conference ID 40144952.

About Facebook

Founded in 2004, Facebook's mission is to give people the power to build community and bring the world closer together. People use Facebook to stay connected with friends and family, to discover what's going on in the world, and to share and express what matters to them.

Contacts

Investors:
Deborah Crawford
investor@fb.com / investor.fb.com

Press:
Vanessa Chan
press@fb.com / newsroom.fb.com

Forward Looking Statements

This press release contains forward-looking statements regarding our future business expectations, which are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are only predictions and may differ materially from actual results due to a variety of factors including: our ability to retain or increase users and engagement levels; our reliance on advertising revenue; our dependency on mobile operating systems, networks, and standards that we do not control; risks associated with new product development and their introduction as well as other new business initiatives; our emphasis on user growth and engagement and the user experience over short-term financial results; competition; litigation; privacy and regulatory concerns; risks associated with acquisitions; security breaches; and our ability to manage growth and geographically-dispersed operations. These and other potential risks and uncertainties that could cause actual results to differ from the results predicted are more fully detailed under the caption "Risk Factors" in our Quarterly Report on Form 10-Q filed with the SEC on May 4, 2017, which is available on our Investor Relations website at investor.fb.com and on the SEC website at www.sec.gov. Additional information will also be set forth in our Quarterly Report on Form 10-Q for the quarter ended June 30, 2017. In addition, please note that the date of this press release is July 26, 2017, and any forward-looking statements contained herein are based on assumptions that we believe to be reasonable as of this date. We undertake no obligation to update these statements as a result of new information or future events.

Non-GAAP Financial Measures

To supplement our condensed consolidated financial statements, which are prepared and presented in accordance with generally accepted accounting principles in the United States (GAAP), we use the following non-GAAP financial measures: revenue excluding foreign exchange effect, advertising revenue excluding foreign exchange effect and free cash flow. The presentation of these financial measures is not intended to be considered in isolation or as a substitute for, or superior to, financial information prepared and presented in accordance with GAAP. Investors are cautioned that there are material limitations associated with the use of non-GAAP financial measures as an analytical tool. In addition, these measures may be different from non-GAAP financial measures used by other companies, limiting their usefulness for comparison purposes. We compensate for these limitations by providing specific information regarding the GAAP amounts excluded from these non-GAAP financial measures.

We believe these non-GAAP financial measures provide investors with useful supplemental information about the financial performance of our business, enable comparison of financial results between periods where certain items may vary independent of business performance, and allow for greater transparency with respect to key metrics used by management in operating our business.

We exclude the following items from our non-GAAP financial measures:

Foreign exchange effect on revenue. We translated revenue for the three and six months ended June 30, 2017 using the prior year's monthly exchange rates for our settlement currencies other than the U.S. dollar, which we believe is a useful metric that facilitates comparison to our historical performance.

Purchases of property and equipment. We subtract purchases of property and equipment in our calculation of free cash flow because we believe that this methodology can provide useful supplemental information to help investors better understand underlying trends in our business.

For more information on our non-GAAP financial measures and a reconciliation of GAAP to non-GAAP measures, please see the "Reconciliation of GAAP to Non-GAAP Results" table in this press release.

FACEBOOK, INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(In millions, except for per share amounts)

(Unaudited)



Three Months Ended
June 30,


Six Months Ended
June 30,


2017


2016(1)


2017


2016(1)

Revenue

$

9,321



$

6,436



$

17,353



$

11,818


Costs and expenses:








Cost of revenue

1,237



917



2,395



1,755


Research and development

1,919



1,471



3,753



2,814


Marketing and sales

1,124



901



2,181



1,728


General and administrative

640



413



1,295



778


  Total costs and expenses

4,920



3,702



9,624



7,075


Income from operations

4,401



2,734



7,729



4,743


Interest and other income, net

87



20



168



78


Income before provision for income taxes

4,488



2,754



7,897



4,821


Provision for income taxes

594



471



938



800


Net income

$

3,894



$

2,283



$

6,959



$

4,021


Less: Net income attributable to participating securities

4



7



10



13


Net income attributable to Class A and Class B common stockholders

$

3,890



$

2,276



$

6,949



$

4,008


Earnings per share attributable to Class A and Class B common stockholders:








Basic

$

1.34



$

0.80



$

2.40



$

1.41


Diluted

$

1.32



$

0.78



$

2.36



$

1.38


Weighted average shares used to compute earnings per share attributable to Class A and Class B common stockholders:








Basic

2,900



2,856



2,895



2,850


Diluted

2,951



2,921



2,950



2,912


Share-based compensation expense included in costs and expenses:








Cost of revenue

$

47



$

29



$

81



$

51


Research and development

787



631



1,457



1,217


Marketing and sales

120



95



216



177


General and administrative

78



62



145



118


  Total share-based compensation expense

$

1,032



$

817



$

1,899



$

1,563




(1)

We elected to early adopt ASU 2016-09 in the fourth quarter of 2016. Our condensed consolidated statements of income for the three and six months ended June 30, 2016 had been adjusted to reflect the impact of ASU 2016-09 adoption. See Note 1 in the notes to our consolidated financial statements in our Annual Report on Form 10-K for the year ended December 31, 2016 for detailed adoption information.

 

FACEBOOK, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In millions)

(Unaudited)





June 30, 2017


December 31, 2016

Assets




Current assets:





Cash and cash equivalents

$

6,252



$

8,903



Marketable securities

29,200



20,546



Accounts receivable, net of allowances for doubtful accounts of $90 and $94 as of June 30, 2017 and December 31, 2016, respectively

3,897



3,993



Prepaid expenses and other current assets

1,455



959



    Total current assets

40,804



34,401


Property and equipment, net

10,628



8,591


Intangible assets, net

2,186



2,535


Goodwill

18,129



18,122


Other assets

2,096



1,312


Total assets

$

73,843



$

64,961








Liabilities and stockholders' equity




Current liabilities:





Accounts payable

$

323



$

302



Partners payable

278



280



Accrued expenses and other current liabilities

2,626



2,203



Deferred revenue and deposits

88



90




    Total current liabilities

3,315



2,875


Other liabilities

4,047



2,892




    Total liabilities

7,362



5,767


Stockholders' equity:





Common stock and additional paid-in capital

39,291



38,227



Accumulated other comprehensive loss

(370)



(703)



Retained earnings

27,560



21,670




    Total stockholders' equity

66,481



59,194


Total liabilities and stockholders' equity

$

73,843



$

64,961


 

FACEBOOK, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In millions)

(Unaudited)



Three Months Ended
June 30,


Six Months Ended
June 30,


2017


2016(1)


2017


2016(1)

Cash flows from operating activities








Net income

$

3,894



$

2,283



$

6,959



$

4,021


Adjustments to reconcile net income to net cash provided by operating activities:








Depreciation and amortization

728



585



1,400



1,137


Share-based compensation

1,032



817



1,899



1,563


Deferred income taxes

26



(101)



(58)



(178)


Other

8



6



12



19


Changes in assets and liabilities:








Accounts receivable

(386)



(492)



223



(225)


Prepaid expenses and other current assets

(212)



(150)



(577)



(257)


Other assets

51



(11)



82



4


Accounts payable

(28)



(41)



(38)



(39)


Partners payable

(7)



17



(10)



14


Accrued expenses and other current liabilities

96



432



157



414


Deferred revenue and deposits

6



25



(4)



23


Other liabilities

152



295



373



646


Net cash provided by operating activities

5,360



3,665



10,418



7,142


Cash flows from investing activities








 Purchases of property and equipment

(1,444)



(995)



(2,715)



(2,127)


 Purchases of marketable securities

(7,145)



(6,509)



(14,137)



(9,635)


 Sales of marketable securities

2,236



2,145



3,998



4,158


 Maturities of marketable securities

899



366



1,498



903


 Acquisitions of businesses, net of cash acquired, and purchases of intangible assets

(8)



(19)



(8)



(20)


 Change in restricted cash and deposits

22



41



33



74


 Net cash used in investing activities

(5,440)



(4,971)



(11,331)



(6,647)


Cash flows from financing activities








Taxes paid related to net share settlement of equity awards

(724)





(1,495)




Principal payments on capital lease and other financing obligations







(312)


Repurchases of Class A common stock

(150)





(378)




Other financing activities, net

5



4



12



6


Net cash (used in) provided by financing activities

(869)



4



(1,861)



(306)


Effect of exchange rate changes on cash and cash equivalents

97



(46)



123



12


Net (decrease) increase in cash and cash equivalents

(852)



(1,348)



(2,651)



201


Cash and cash equivalents at beginning of period

7,104



6,456



8,903



4,907


Cash and cash equivalents at end of period

$

6,252



$

5,108



$

6,252



$

5,108


 

FACEBOOK, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In millions)

(Unaudited)



Three Months Ended
June 30,


Six Months Ended
June 30,


2017


2016(1)


2017


2016(1)

Supplemental cash flow data








Cash paid during the period for:








Interest

$



$



$



$

11


Income taxes, net

$

695



$

237



$

1,359



$

407


Non-cash investing and financing activities:








Net change in accounts payable, accrued expenses and other current liabilities, and other liabilities related to property and equipment additions

$

183



$

37



$

157



$

89


Change in unsettled repurchases of Class A common stock

$

30



$



$

30



$




(1)

We elected to early adopt ASU 2016-09 in the fourth quarter of 2016. Our condensed consolidated statements of cash flows for the three and six months ended June 30, 2016 had been adjusted to reflect the impact of ASU 2016-09 adoption. See Note 1 in the notes to our consolidated financial statements in our Annual Report on Form 10-K for the year ended December 31, 2016 for detailed adoption information.

 

Reconciliation of GAAP to Non-GAAP Results

(In millions, except percentages)

(Unaudited)



Three Months Ended
June 30,


Six Months Ended
June 30,


2017


2016


2017


2016

GAAP revenue

$

9,321



$

6,436



$

17,353



$

11,818


   Foreign exchange effect on 2017 revenue using 2016 rates

141





164




Revenue excluding foreign exchange effect

$

9,462





$

17,517




GAAP revenue year-over-year change %

45

%




47

%



Revenue excluding foreign exchange effect year-over-year change %

47

%




48

%



GAAP advertising revenue

$

9,164



$

6,239



$

17,021



$

11,440


   Foreign exchange effect on 2017 advertising revenue using 2016 rates

141





163




Advertising revenue excluding foreign exchange effect

$

9,305





$

17,184




GAAP advertising revenue year-over-year change %

47

%




49

%



Advertising revenue excluding foreign exchange effect year-over-year change %

49

%




50

%











Net cash provided by operating activities(1)

$

5,360



$

3,665



$

10,418



$

7,142


   Purchases of property and equipment

(1,444)



(995)



(2,715)



(2,127)


Free cash flow(1)

$

3,916



$

2,670



$

7,703



$

5,015




(1)

We elected to early adopt ASU 2016-09 in the fourth quarter of 2016. Net cash provided by operating activities and free cash flow for the three and six months ended June 30, 2016 had been adjusted to reflect the impact of ASU 2016-09 adoption. See Note 1 in the notes to our consolidated financial statements in our Annual Report on Form 10-K for the year ended December 31, 2016 for detailed adoption information.

 

View original content with multimedia:http://www.prnewswire.com/news-releases/facebook-reports-second-quarter-2017-results-300494811.html

  • Prince William May Have Just Dropped Another Hint About the Royal Baby's Name
    News
    Time

    Prince William May Have Just Dropped Another Hint About the Royal Baby's Name

    Although the Duke and Duchess of Cambridge have yet to reveal the name of the third royal baby, Prince William certainly hasn’t been shy about dropping possible hints on the matter. After notably calling out the name of a photographer while leaving St. Mary’s hospital with Kate Middleton and their newborn son on Monday, it seems the prince has again fueled the baby-naming rumor mill. While attending an early morning Anzac Day memorial service at Westminster Abbey alongside his brother, Prince Harry, and future sister-in-law, Meghan Markle, on Wednesday, William was bombarded with questions about the new royal baby’s unannounced moniker, according to People.

  • Ford accelerates cost-cutting plan, will drop most U.S. sedans
    Business
    Reuters

    Ford accelerates cost-cutting plan, will drop most U.S. sedans

    Ford Motor Co (F.N) on Wednesday outlined a plan to cut costs and boost profit margins at a faster pace than previously announced, which includes dropping traditional sedan models in North America that have become increasingly unpopular with consumers. Ford Chief Executive Jim Hackett told investors the company is undergoing "a profound refocus" of its operations and may exit unprofitable businesses. "We're going to feed the healthy part of our business," and dispose of marginal operations, Hackett added.

  • Warren Buffett explains how you could've turned $114 into $400,000 with a simple long-term investment
    News
    Yahoo Finance

    Warren Buffett explains how you could've turned $114 into $400,000 with a simple long-term investment

    Many of us know the magic of investing money in the stock market—just letting it sit and watching it grow—but few of us really grasp just how powerfully enriching this can be. Not surprisingly, Warren Buffett, the world’s greatest investor, has a vivid example of this which he shared with me during a visit earlier this year at Berkshire Hathaway headquarters in Omaha. First, take yourself back, way back to America’s entry into World War II. Franklin Roosevelt was president and Buffett was a young boy.

  • The bizarre holes NASA found in the Arctic sea ice are actually a sign of a more worrying trend
    Science
    Quartz

    The bizarre holes NASA found in the Arctic sea ice are actually a sign of a more worrying trend

    On April 14, a group of NASA scientists were flying over the Beaufort Sea, north of Alaska and the Canadian border, when they saw something puzzling: Three holes in the sea ice with what look like rings around them and some wavy ice to their left. “I don’t recall seeing this sort of thing elsewhere,” John Sonntag, a meteorologist with NASA who took the above photo, said in a statement. “My first guess is that these are seal breathing holes,” says Walt Meier, an atmospheric scientist at the National Snow and Ice Data Center who focuses on sea ice.

  • That's One Reason To Suspend Nuclear Tests: North Korea's Most Recent Blast Collapsed a Mountain
    World
    Fortune

    That's One Reason To Suspend Nuclear Tests: North Korea's Most Recent Blast Collapsed a Mountain

    Last weekend, North Korea suspended its nuclear tests and shut down the site where the last six detonations took place: underneath Mount Mantap, in the country’s northeast. The reasons are ostensibly diplomatic, pointing to a thaw in relations between Kim Jong-un’s regime and South Korea and the West, but some noted that Pyongyang might have also been worried that the mountain was at risk of collapsing, as it visibly shifted during the last nuclear test. The site is not far from North Korea’s borders with China and Russia.

  • Finance
    Fox Business

    General Electric liquidation would be a ‘fool’s errand’: Bob Wright

    As General Electric weighs whether to break up the sprawling conglomerate after a year of financial woes, the former vice chairman of the 125-year-old company Bob Wright warned it would be a “fool’s errand” to do so. “It’s worth more whole,” Wright told FOX Business’ Stuart Varney during an interview on Wednesday. In recent decades, the conglomerate has relinquished control of many businesses, including NBCUniversal.

  • Claims Syria used chemical weapons were a hoax: David Stockman
    World
    Fox Business Videos

    Claims Syria used chemical weapons were a hoax: David Stockman

    Former Reagan Budget Director David Stockman on the need to rein in government spending and the Trump administration's handling of Syria and Iran.

  • The Trump administration again signals it will scrap work permits for H-1B spouses
    Finance
    Quartz

    The Trump administration again signals it will scrap work permits for H-1B spouses

    The Donald Trump administration just won’t go easy on H-4 visa-holders. The United States Citizenship and Immigration Services (USCIS) has reiterated that it plans to scrap the provision allowing H-4 visa-holders to work in the country. “…our plans include proposing regulatory changes to remove H-4 dependent spouses from the class of aliens eligible for employment authorisation, thereby reversing the 2015 final rule that granted such eligibility,” Lee Francis Cissna, director of the USCIS, wrote in an April 04 letter to Charles E Grassley, chairman of the judiciary committee of the 115th Congress.

  • AT&T Misses Q1 Targets, as DirecTV Now Streaming Service Hits 1.46 Million Subscribers
    Business
    Variety

    AT&T Misses Q1 Targets, as DirecTV Now Streaming Service Hits 1.46 Million Subscribers

    With the growth of DirecTV Now, AT&T’s total U.S. TV base is around where it was a year ago: 25.36 million, vs. 25.37 million in the first quarter of 2017. Operating income for AT&T’s Entertainment Group fell 16%, to $1.33 billion — and that’s down 29% if you back out the accounting change. Overall, the telco fell short of analyst projections, reporting revenue of $38.0 billion, down 3.4% year over year, and adjusted earnings per share of 85 cents. Wall Street analysts expected AT&T to report revenue of $39.3 billion and adjusted earnings of 87 cents per share.

  • Melania Trump’s state dinner gown was reincarnated from a Chanel couture jumpsuit
    News
    Quartz

    Melania Trump’s state dinner gown was reincarnated from a Chanel couture jumpsuit

    For her inaugural state dinner as first lady, Melania Trump changed out of the supremely white Carmen Sandiego-meets-Bianca Jagger hat that puzzled the internet all day, and slipped into something a little more comfortable—namely, Chanel haute couture. A former fashion model, Melania is no stranger to the power of the fashion, which doesn’t entirely explain the hat, but it does explain the Chanel. The guests of honor, of course, were French president Emmanuel Macron, and the French first lady Brigitte Macron.

  • Microsoft Becomes Second Most Valuable Company For First Time Since 2015
    Finance
    Fortune

    Microsoft Becomes Second Most Valuable Company For First Time Since 2015

    On Tuesday, Microsoft was valued at $714 billion, about $3 billion above Alphabet and Amazon. Microsoft had briefly ascended to No. 2 on April 12 and then again on April 16. On Tuesday, amid worries about higher U.S. Treasury yields and disappointing earnings by other companies that sent the S&P 500 down1.3%, Microsoft rose to No. 2 by virtue of its shares falling less--2.3%--than those of its rivals.

  • Is The Williams Companies Inc (NYSE:WMB) A Smart Pick For Income Investors?
    Business
    Simply Wall St.

    Is The Williams Companies Inc (NYSE:WMB) A Smart Pick For Income Investors?

    Over the past 10 years The Williams Companies Inc (NYSE:WMB) has returned an average of 4.00% per year from dividend payouts. The company currently pays out a dividend yield of 5.32% to shareholders, making it a relatively attractive dividend stock. Is it able to pay the current rate of dividends from its earnings?

  • Business
    InvestorPlace

    Advanced Micro Devices, Inc. Crushed Analysts’ Q1 Expectations

    Advanced Micro Devices, Inc. (NASDAQ:AMD) saw its shares soar after the company unveiled its latest quarterly earnings results. Advanced Micro Devices saw its revenue increase by 40% compared to the year-ago quarter, thanks in part to its Computing and Graphics Business Segment, which soared 95% year-over-year to $1.12 billion.  The company’s Enterprise, Embedded and Semi-Custom segment declined 12% compared to the year-ago quarter to $532 million, due in part to its semi-custom revenue falling. “The first quarter was an outstanding start to 2018 with 40 percent year-over-year revenue growth,” said Lisa Su, AMD’s president and CEO, in a press release.

  • Are Iranians Concerned Over Trump's Foreign Policy?
    Politics
    Bloomberg Video

    Are Iranians Concerned Over Trump's Foreign Policy?

    Bloomberg’s Golnar Motevalli discusses concerns of Iranians over the foreign policy of U.S. President Donald Trump. RIGHT NOW INTERNATIONAL RELATIONS, WE ARE THRILLED TO GO TO WASHINGTON AND KEVIN CIRILLI. ARE THE PEOPLE OF IRAN ARE THEY ENGAGED IN THIS DEBATE BETWEEN MR. TRUMP AND YOUR GOVERNMENT?

  • Boeing adds German partners for heavy-lift helicopter battle
    Business
    Reuters

    Boeing adds German partners for heavy-lift helicopter battle

    Boeing has teamed up with 10 German firms as part of its bid to win a 4 billion euro ($4.9 billion) heavy-lift helicopter contract from Berlin, the U.S. company said on Wednesday. Last week, U.S. rival Lockheed Martin Corp's Sikorsky said it had also linked up with more German firms as part of its attempt to land the deal. Foreign defense companies often offer work to local firms to try to win major government contracts.

  • Qualcomm profit tops estimates on higher modem chip sales
    Business
    Reuters

    Qualcomm profit tops estimates on higher modem chip sales

    The results announced on Wednesday, particularly in Qualcomm's smartphone chip business, were in contrast to those from major mobile phone components makers in Asia including TSMC and SK Hynix Inc , which have warned of slower growth in their smartphone chip divisions. While revenue from Qualcomm's modem chips business - its largest - rose 6 percent in the three months ended March 25, revenue from its licensing business plunged 44 percent, reflecting the loss of revenue due to a high-profile patent battle with Apple Inc (AAPL.O). Qualcomm said it sees about 5 percent growth in modern mobile handsets for the remainder of the year, which is lower than anticipated.

  • Why Globalstar Inc. Stock Fell Hard Today
    Business
    Motley Fool

    Why Globalstar Inc. Stock Fell Hard Today

    Shares of Globalstar Inc. (NYSEMKT: GSAT) went on a roller coaster ride this morning. The satellite communications specialist's stock bottomed out in a 16% drop just after 10 a.m. EDT, recovering to a less dramatic 7% decline an hour later. The company is the target of a complicated merger deal today, and investors on the open market are not loving the idea.

  • Philippines to deport Australian nun who angered Duterte
    World
    AFP

    Philippines to deport Australian nun who angered Duterte

    The Philippines on Wednesday ordered the deportation of an elderly Australian Catholic nun who angered President Rodrigo Duterte, accusing her of engaging in illegal political activities outside of her missionary work. Sister Patricia Fox, 71, who was briefly detained last week, will be the second foreigner who has spoken out recently against Duterte's policies to be expelled, as the government hits back at critics of his human rights record. The immigration service said it had cancelled the visa of Fox, who relocated to the Philippines in 1990 as a member of the missionary Sisters of Our Lady of Sion.

  • All You Need to Know About 3M Company's Disastrous First Quarter
    Business
    Motley Fool

    All You Need to Know About 3M Company's Disastrous First Quarter

    Shares of 3M tanked 8.5% at one point in trading, only to end the day 6.8% in the red. Sure, 3M reported a massive drop in its first-quarter GAAP earnings and downgraded its full-year guidance, but you need to dive deeper into the earnings report and management's outlook to get a sense of how bad the company's quarter really was. The table below, which provides a snapshot of the key numbers from 3M's earnings,  should give you a hint why the market reacted so strongly.

  • Visa tops profit estimates, raises full-year earnings forecast
    Business
    Reuters

    Visa tops profit estimates, raises full-year earnings forecast

    (Reuters) - Visa Inc (V.N) topped Wall Street targets for quarterly profit and raised its full-year earnings forecast on Wednesday, as more people use credit cards worldwide to buy everything from gas to online goods. The world's largest

  • Rolls-Royce, Airbus to collaborate on new UltraFan engine
    Business
    Reuters

    Rolls-Royce, Airbus to collaborate on new UltraFan engine

    Rolls-Royce and Airbus have signed a deal to collaborate on development of the UltraFan, a new engine that is intended to 25 percent more fuel efficient than the earliest version of the Trent engine, the British company said on Wednesday. "It is great to have Airbus expertise to further strengthen our ability to deliver this important development program," said Andy Geer, chief engineer on the UltraFan, said in a statement. Rolls-Royce is looking to UltraFan to secure its long-term future.

  • Ford Beats Expectations and Slashes Car Lineup to 2 Models
    Business
    Forbes

    Ford Beats Expectations and Slashes Car Lineup to 2 Models

    Ford Motor Co. earned $1.74 billion, or 43 cents per share, in the first quarter, beating expectations and benefiting from a lower U.S. tax rate. That was up 9% from a year earlier. Analysts, on average, expected earnings of 41 cents per share and revenue of $37.2 billion, according to Thomson Reuters. Ford, which has struggled to contain rising material prices, raised its cost-cutting target to $25.5 billion by 2022, well above the $14 billion it told analysts about last fall. Those cuts are to be achieved through efficiencies and other measures in engineering, product development, marketing and manufacturing. Revenue also exceeded expectations, rising 7% to $41.96 billion. The company also

  • Ford beats on first-quarter earnings — but kills sedans in USA (F)
    Finance
    Business Insider

    Ford beats on first-quarter earnings — but kills sedans in USA (F)

    Ford announced it will not invest in new sedans in North America but will keep Mustang and a new crossover with the Focus nameplate. Ford reported first-quarter earnings after the markets closed on Wednesday and beat analysts expectations, with a profit of $0.43 per share and revenue of $42 billion. "We are committed to taking the appropriate actions to drive profitable growth and maximize the returns of our business over the long term," CEO Jim Hackett said in a statement.

  • Ford Plans $11.5 Billion in Extra Cuts, Kills Most U.S. Cars
    Business
    Bloomberg

    Ford Plans $11.5 Billion in Extra Cuts, Kills Most U.S. Cars

    Ford Motor Co. is sharpening its knives to cleave another $11.5 billion from spending plans and cut several sedans, including the Fusion and Taurus, from its lineup to more quickly reach an elusive profit target. The automaker expects to save $25.5 billion by 2022, Chief Financial Officer Bob Shanks told reporters Wednesday as Ford reported first-quarter earnings per share and revenue that beat estimates. The company now anticipates reaching an 8 percent profit margin by 2020, two years ahead of schedule. The cuts are aimed at kick-starting a turnaround effort almost one year after Ford’s board ousted its chief executive officer. New CEO Jim Hackett has been trying to convince investors that

  • Ford says only Mustang, Focus will live on in North America as it drops slow-selling sedans
    Business
    MarketWatch

    Ford says only Mustang, Focus will live on in North America as it drops slow-selling sedans

    Ford Motor Co. said Wednesday it will stop investing in sedans in North America, bowing to U.S. drivers’ seemingly never-ending zest for crossovers and pickup trucks. Ford F, +1.37%  shifted focus on “building a winning portfolio” of vehicles, by which it meant no more of its slow-selling sedans at least for North America. U.S. drivers have gravitated to SUVs and pickup trucks for years, thanks in part to these vehicles’ relative fuel economy improvements and price drops. Many car buyers also report enjoying the high-riding seating position of an SUV or pickup truck. “Ford realized it can’t be everything to everyone, and in today’s market that could be OK,” said Jessica Caldwell, an analyst with