Wall St. Brief: Netflix Takes a DIVE, Apple Falls Short AGAIN

Caterpillar Inc. (NYSE:CAT) reported its second-quarter earnings increased 67 percent thanks to strong demand driving revenue increases. The company increased its 2012 earnings estimate to $9.60, up from April’s $9.50 per share but slashed its revenue guidance by $2 billion; estimates are now $68 billion to $70 billion. Even with weak global economic conditions and $1 billion in negative currency, Caterpillar’s CEO Doug Oberhelman expects a record year.

Apple Inc.’s (NASDAQ:AAPL) shares are down nearly 5 percent in early trading after reporting its third quarter earnings missed expectations on Tuesday. Its earnings per share increased to $9.32 from $7.79 and revenue rose 22 percent to $35 billion. Apple’s fourth quarter guidance for $7.65 and $38 billion also came in lower than consensus. But it was a good quarter for iPad sales, increasing 44 percent to 17 million while iPhone sales dropped to 26 million from the second quarter’s 35 million. Apple said iPhone 5 rumors are driving consumers to hold off for its release; this added to Apple missing earnings, along with the economy.

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Ford’s (NYSE:F) net profit dropped 57 percent to $1 billion but bright spots included overseas operations and an rising tax rate offsetting a strong North American performance. The company’s adjusted $0.30 earnings per share and $33.3 billion revenue beat estimates. Ford decreased its fiscal year profit guidance and raised its expected European losses to more than $1 billion from a previous forecast of $600 million.

Netflix’s (NASDAQ:NFLX) second quarter earnings per share dove to $0.11 from $1.26 but exceeded analysts’ expectations, while revenue jumped 12.7 percent to $889 million and met estimates. Shares dove 19.4 percent in premarket trading after the company forecast either potential or definite losses in the upcoming quarters, partially from international growth. Netflix gave a lower guidance for additional domestic subscriptions, increasing concerns about meeting its 2012 user-growth targets.

Bank of England staff had conveyed concerns to the bank’s top guns in late 2010 about JPMorgan’s (NYSE:JPM) CIO lead in different areas of the U.K. markets, reported the Wall Street Journal. But the bank didn’t do anything about their concerns as JPMorgan gave liquidity to British banks and because it wasn’t the firm’s supervisor.

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