Alphabet Inc results easily beat analysts’ expectations

On Thursday, Google’s parent company, Alphabet, reported results which easily beat analysts’ expectations. For the quarter, the group’s sales increased by 21% over the past year to come in at $21.5bn, better than estimates of an increase to $20.76bn. In addition, the group posted earnings of $8.42 per share, easily surpassing expectations of $8.04 per share. As a result, both its Class A and Class C shares surged in after-hours trade, before paring some of its gains. Lastly, advertising revenue increased by 19% to $19.14bn during the period, helped along by a 29% uptick in aggregate paid clicks and a 27% increase in paid clicks on Google websites.

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Facebook Surpasses Analysts’ Expectations

On Wednesday, Facebook gained 1.75% during the normal session, but surged in after-hours trade after the group easily surpassed analysts’ expectations. During its 2nd fiscal quarter, the group saw revenue increase by 59.2% to $6.44bn, sharply higher than expectations of an increase to $6.02bn. As a result, net income attributable to shareholders increased to $2.05bn, or 71 cents a share, up from $715mn, or 25 cents a share, a year earlier. Excluding items, Facebook saw earnings increase to 97 cents per share, blowing away expectations of an increase to 82 cents per share. Lastly, Facebook’s main revenue stream, add revenue, performed exceptionally well as it increased to $6.24bn, surpassing estimates of an increase to $5.8bn.

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Apple Inc – Better-than-expected results

On Tuesday, Apple traded sharply higher in after-hours trade, boosted by news that the group had released better-than-expected results for its fiscal 3rd quarter. During the quarter, the group reported revenues of $42.4bn, higher than expectations of $42.09bn, but lower than the $49.61bn reported a year ago. Furthermore, earnings for the period came in at $1.42 per share, down from $1.85 per share in 2015, but better than estimates of a decline to $1.38 per share.  Lastly, revenue for the period was affected by sales in China, which declined by 33% over the past year to $8.8bn, but this was partially offset by higher-than-expected revenues from its services category.

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General Electric Co – Better-than-expected results

On Friday, General Electric reported results which saw both revenue and earnings come in higher-than-expected. For the 2nd quarter, revenues increased to $33.49bn, up from $29.23bn in the previous corresponding period, and better than forecasts of an increase to $31.57bn. In addition, the group reported earnings of $0.51, better than estimates of an increase to $0.46 and sharply higher than the $0.31 recorded a year ago. Lastly, the increase in revenue was mainly attributable to a 31% increase in sales in its power segment, while its renewable energy business saw sales increase by 28%, with both segments receiving a boost from the acquisition of Alstom’s energy business.

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Visa Inc – Upbeat Results

On Thursday, Visa reported better-than-expected earnings, while the group also declared a dividend and a $5bn share buyback program. During the quarter, Visa’s net income declined to $412mn, or 17 cents per Class A share, down from $1.69bn, or 69 cents per Class A share, a year earlier. However, excluding costs relating to Visa Europe, the group reported adjusted earnings of 69 cents per share, marginally higher than estimates of 66 cents per share. Meanwhile, total operating revenue increased by 3.2% to $3.63bn, but this was lower than expectations of $3.65bn. Lastly, this increase was partly due to a 10.2% increase, on a constant dollar basis, in the company’s payment volumes to $1.35tn.

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Intel Corp – Mixed Results

Intel gained 1.54% during the regular session on Wednesday, but traded sharply lower in after-hours trade following the release of mixed results. For the quarter, revenue came in at $13.53bn, slightly lower than expectations of $13.54bn. However, the group reported earnings of 59 cents per share, higher than analysts’ estimates of 53 cents.  The lower-than-expected revenue can be mainly attributed to its data center and “Internet of Things” segments, which have previously been put forward as the group’s primary profit growth engines. During the quarter, net revenue from the data center business came in at $4.03bn, lower than estimates of $4.16bn.

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Goldman Sachs Group Inc – Another Beat

On Tuesday, Goldman Sachs joined a number of other major US banks to beat analysts’ estimates after the group released better-than-expected results. For the quarter, revenue came in at $7.93bn, better than estimates of $7.58bn, but lower than the $9.07bn reported a year ago. However, earnings per share increased to $3.72, up from $1.98 a year ago, and sharply higher than expectations of $3. This was partly attributable to the group’s fixed income, currency and commodity trading unit, which featured among its top performing units. During the period, it recorded revenue of $1.93bn, a 20% increase compared to the previous corresponding period.

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International Business Machines Corp – Better-than-expected results

On Monday, IBM featured as yet another company to release better-than-expected results. For the 2nd quarter, the group reported revenues of $20.24bn, higher than expectations of $20.03bn. However, IBM recorded its 17th straight quarterly decline in revenue, compared with the $20.81bn reported in the previous corresponding period. Meanwhile, earnings per share came in at $2.95, sharply lower than the $3.84 reported a year ago, but marginally higher than expectations of a decline to $2.89 per share. The company, which was founded in 1911, continues to make its transition from a legacy technology company to the cloud.

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Wells Fargo & Co – Missed Expectations

Wells Fargo ended sharply lower on Friday, down 2.51% at $47.71 per share, after it became the first major US bank to not beat analysts’ expectations. During the period, revenue came in at $22.16bn, slightly lower than estimates of $22.17bn, but up from the $21.318bn reported a year ago. Furthermore, earnings per share were in line with estimates at $1.01, but slightly lower than the $1.03 reported a year ago. Lastly, the group’s results were affected by higher-than-expected credit losses of $924mn during the 2nd quarter, compared to the 1st quarter, mainly due to a $59mn increase in credit losses in its oil and gas portfolio.

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Yum Brands Inc – Mixed Results

Yum Brands shed 0.57% on Wednesday, but traded sharply higher in after-hours trade following the release of its latest results.  For the quarter, Yum reported revenues of $3.01bn, 3% lower than the $3.1bn reported a year ago and lower than analysts’ expectations of a drop to $3.09bn. In contrast, adjusted earnings came in at 75 cents per share, marginally higher than estimates of 74 cents per share. In China, the group’s largest division, same-store sales were flat, but this was in line with expectations. Lastly, as it stands, China accounts for $1.59bn in revenue and more operating profit than any other division.

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