Afternoon BUZZERS: Sprint SURGES 20% on Strong Revenue, Zynga PLUMMETS
Exxon Mobil (NYSE:XOM) are up more than 1 percent in early afternoon trading, despite reporting a 48.9 percent rise in net income for the second. The oil giant earned $15.9 billion ($3.41 per share), compared to $10.68 billion ($2.18 per share) a year earlier. However, the results included $7.5 billion in gains from unexpected divestitures and tax-related items, according to Bloomberg.
Shares of Sprint Nextel (NYSE:S) surged nearly 20 percent today. Although the second quarter loss widened to $1.37 billion, compared to $847 million a year earlier, revenue jumped 6.4 percent to $8.84 billion. “The Sprint platform achieved best ever postpaid ARPU and customer churn that, combined with disciplined customer acquisition and cost management, contributed to our Adjusted OIBDA* of $1.45 billion,” said Dan Hesse, Sprint CEO. “Based on this performance, we are raising the 2012 Adjusted OIBDA* forecast to between $4.5 billion and $4.6 billion.”
Zynga (NASDAQ:ZNGA) shares plummeted almost 39 percent today. The social-gaming company on Wednesday reported earnings on an adjusted basis of $4.5 million (1 cent per share), compared to estimates of 5 cents per share. Facebook (NASDAQ:FB) shares also dropped more than 5 percent on the news. Zynga blamed its woes on Facebook’s new app platform.
Apple (NASDAQ:AAPL) shares edged slightly lower today after falling over 4 percent on Wednesday. According China’s First Financial Daily, the new iPhone 5 is set to be postponed due to a supply shortage in high-end chips used in the device. “Apple’s leading chip supplier, Qualcomm (NASDAQ:QCOM), will be able to tackle the 28nm chip undersupply only by the end of this year, said Qi Fei, a spokesman for Qualcomm China. The problem arose during the second quarter of this year, as demand for 28nm chips has been growing alongside the popularity of smartphones,” the agency reported.
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