A.M. Buzzers: Bank of America Edges Higher, Intel and IBM Drop After Earnings
Bank of America (NYSE:BAC) shares edged higher after reporting third quarter financial results. The bank reported earnings of $340 million, a sharp decline from $6.23 billion a year earlier. Revenue also fell 28 percent to $20.43 billion. Although earnings beat expectations, the bank released $2.3 billion from its loan-loss reserves, which gives a boost to the bottom line.
Shares of Intel (NASDAQ:INTC) fell more than 1 percent Wednesday morning. The company announced that third quarter net income fell 14.3 percent to $2.97 billion (58 cents per share), compared to $3.47 billion (65 cents per share) a year earlier. Revenue also declined 5.5 percent to $13.46 billion. “Our third-quarter results reflected a continuing tough economic environment,” said Paul Otellini, Intel president and CEO. “The world of computing is in the midst of a period of breakthrough innovation and creativity.” Shares of Advanced Micro Devices (NYSE:AMD) also traded lower on the results.
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International Business Machines (NYSE:IBM) shares dropped 3.84 percent after reporting financial results for the third quarter. Net income declined to $3.82 billion ($3.33 per share), compared to $3.84 billion ($3.19 per share) a year earlier. Revenue also fell 5.4 percent to $24.75 billion. Last quarter’s profit decrease ends a four-quarter streak of profit increases.
Shares of Apple (NASDAQ:AAPL) slightly fell this morning. Shares received a boost the prior day after sending media invites to an event on October 23 for what is widely expected to be the launch of a new iPad Mini. The invitation, featuring the line “We’ve got a little more to show you”, is at least a little reminiscent of the company’s invites before the announcement of the first iPad in January 2010. The announcement will be held at 10 a.m. Pacific Time at the California Theatre in San Jose, California.
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