Wall St. Brief: Cisco SLASHES Workforce, Apple and Netflix Earnings ON DECK
Texas Instruments’ (NYSE:TXN) second quarter profit plummeted 34 percent to $446 million with revenue falling four percent to $3.3 billion; its $0.44 adjusted earnings per shares exceeded $0.41 estimates. The company gave third quarter earnings per share and sales guidance below consensus, noting that economic conditions are driving customers and distributors to act “increasingly cautious” in making new orders.
Apple (NASDAQ:AAPL) and Netflix (NASDAQ:NFLX) will report their earnings after the closing bell. Analysts estimate that Apple’s fiscal quarter three earnings per share will rise to $10.36 from $7.79 from the previous year with revenue increasing 30 percent to $37.18 billion. It is a different story for Netflix: It’s second quarter earnings per share are expected to fall to $0.05 from $1.26, with revenue estimated to rise 12.7 percent to $888.9 million.
Rosneft will begin talks with BP (NYSE:BP) about purchasing the latter’s 50 percent share in its TNK-BP Russian joint venture. AAR, the owner of the other 50 percent, said last week it was interested in buying half of BP’s holding for $10 billion. BP and AAR are looking to separate themselves from their deteriorating joint venture.
Cisco (NASDAQ:CSCO) will lay off an additional 1,300 workers or two percent of its workforce thanks to Europe’s debt crisis and slow corporate sales, reported Bloomberg. The cuts come after last year’s restructuring that had the company eliminate 6,500 jobs (nine percent). Cisco will report its fourth quarter earnings on Aug. 15. Meanwhile, the EU approved Cisco’s $5 billion NDS acquisition.
Carlyle Group (NYSE:CG) and BC Partners are in talks to purchase United Tech’s (NYSE:UTX) industrial businesses, reported Reuters. The talks are in the advanced stages and could result in a $3.5 billion-plus deal. There’s also a possibility that United Tech could look at other suitors including TPG Capital.