Baidu JUMPS 11%, DeVry Plunges 27%, All Eyes on Apple
Texas Instruments (NYSE:TXN) reported yesterday that net income for the second quarter fell 33.6 percent to $446 million (38 cents per share), compared to $672 million (56 cents per share) a year earlier. Revenue also dipped 3.6 percent to $3.33 billion. “TI revenue in the second quarter was about as we had expected,” said Rich Templeton, TI’s chairman, president and CEO. “Our Analog and Embedded Processing segments grew sequentially, while our Wireless segment declined. Although we believe customers and distributors have low inventory levels, the global economic environment is causing both to become increasingly cautious in placing new orders.”
Shares of VMware (NYSE:VMW) rebounded to the green this morning after reporting financial results yesterday for the second quarter. Net income fell 12.9 percent to $191.7 million (44 cents per share), compared to $220.2 million (51 cents per share) a year earlier. The computer software company fell short of the mean analyst estimate of 48 cents per share.
Baidu (NASDAQ:BIDU) shares surged over 11 percent in morning trading. The company posted a 70 percent increase in quarterly profit as net income was up at $436 million ($1.24 per share), on revenue of $858.8 million. Revenue increased nearly 60 percent over its previous year quarter. Analysts had expected the company to report earnings of $1.12 per share on revenue of $850.78 million. “We are pleased to announce strong results for the second quarter despite macro headwinds and challenging comparisons with the same period last year,” chief executive Robin Li said in a statement. “Our efforts to expand our customer base continue to make solid progress.”
Despite a market pullback and rising concerns from some analysts, Apple (NASDAQ:AAPL) shares are trading mostly flat this morning at $605.50 per share. With the a new iPhone expected this fall, many suspect that consumers are delaying purchases until then. “People are waiting,” said Andy Hargreaves, an analyst at Pacific Crest Securities in Portland, Oregon. Apple will sell about 25.4 million iPhones, he estimates, compared with 35.1 million in the previous quarter. “It’s going to be bad now, but great later,” according to Bloomberg. The tech giant reports earnings on Tuesday.
After managing to close 2.4 percent higher during regular trading, Halliburton (NYSE:HAL) shares edged lower in morning market trading, but have recovered in pre-market today. The oil-field services company recently reported that net income declined to $737 million (80 cents per share) in the second-quarter, compared to $739 million (80 cents per share) a year earlier. Revenue jumped 21.9 percent to $7.23 billion. “I am pleased with our second quarter results, which set a new revenue record for the total company and all three of our international regions,” commented Dave Lesar, chairman, president and chief executive officer.
Shares of DeVry (NYSE:DV) plunged more than 27 percent in early trading. The for-profit educator warned Wall Street that fourth quarter earnings will be impacted by higher costs and lower enrollment. DeVry now expects to see enrollment decrease 15 percent to 17 percent in the quarter, while earnings 43 cents to 46 cents per share. In comparison, analyst had expected earnings of 78 cents per share. The company will also slash 570 jobs.
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