Morning Buzzers: Apple Shocks Market, Broadcom and Caterpillar Climb Higher
Apple (NASDAQ:AAPL) shares were down 4.76 percent in late morning trading. The tech giant reported disappointing results for the June quarter. Net income was $8.8 billion ($9.32 per share), compared to $7.3 billion ($7.79 per share) a year earlier. Analysts polled by FactSet had expected earnings of $10.37 per share. Apple forecast earnings of $7.65 per share for the current quarter, well below the average analyst forecast of $10.26. Apple usually far surpasses its own earnings expectations, but for the just-ended quarter, Apple’s cautious forecasts were more accurate than those of analysts.
Broadcom (NASDAQ:BRCM) shares surged nearly 10 percent this morning. The company said net income for the second quarter fell to $160 million, compared to $175 million a year earlier. However, adjusted net income of 72 cents per share was better than the mean analyst estimate of 43 cents per share. Revenue also increased almost 10 percent to $1.97 billion. “Broadcom delivered record revenue in Q2 with strength across all three business groups,” said Scott McGregor, chief executive officer. “Broadcom’s technology leadership and commitment to integration is changing the fundamental economics of communications devices across our addressable markets.
Shares of Caterpillar (NYSE:CAT) jumped 1.65 percent this morning. The company announced that net income for the second quarter increased 67.4 percent to $1.7 billion ($2.54 per share), compared to $1.01 billion ($1.52 per share) a year earlier. Revenue also increased 23.3 percent to $16.68 billion. “I am very pleased with Caterpillar’s record-breaking performance in the second quarter. Our employees, dealers and suppliers across the globe are doing a superb job of executing our strategy. They have helped deliver the highest level of financial performance for any quarter in our history for our stockholders and outstanding value for our customers,” said Doug Oberhelman, chief executive officer.
Ford (NYSE:F) shares dipped 0.44 percent this morning after reporting financial results for the second quarter. Net income fell 56.6 percent to $1.04 billion (26 cents per share), compared to $2.4 billion (59 cents per share) a year earlier. “The Ford team delivered another solid quarter driven by the strength of Ford North America and Ford Credit,” said Alan Mulally, Ford president and chief executive officer. “We remain absolutely committed to continuing to make progress on our One Ford plan, including dealing decisively with near-term challenges, investing for future growth, and developing outstanding products with segment-leading quality, fuel efficiency, safety, smart design and value.” Shares of General Motors (NYSE:GM) also declined after the results.
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