As the first major week of the earnings season ended , most of the investors heaved a sigh of relief as they have had lot to digest in the first week itself. With most firms reporting more than expected results , technology stocks were the most in focus along with the financials.
IBM’s reports showed it to be a mixed quarter for the New York , Armonk based firm. The revenue was $24.67 billion while the earnings were at $2.78 per share which was above the $24.6 billion and the $2.41 respectively from the first quarter in 2011. CEO Ginni Rometty said that he was glad with the profit results as his firm continued with the earnings growth . Besides delivering incredible software performance , IBM expanded its services margin and the momentum in the growth initiatives was steady , said Rometty. The investments in the growing economies generated strong revenue for them across hardware, software and services , contributing to firm’s margin expansions.
The world’s largest chip maker , Intel , cited non-GAAP earnings of 56 cents per share , on its revenue which was $12.9 billion . The profit and revenue were only slightly up from the analyst expectations.
The guidance expected on the second quarter was also higher , however margins could be falling quarter after quarter which resulted in the declining of the stock. Intel reported the expectations for the second quarter to be somewhere around $13.6 billion and margins between 62 to 63 percent which is lower than that of the first quarter.
Shares of both IBM and Intel ended the week lower .
The tide for Yahoo Inc. was a tad different. With the company posting better than expected results and CEO Scott Thompson plan to turn around the company , the investors rewarded them with stocks finishing the week up by nearly 4 percent at $15.60 .
The Sunnyvale , Calif – based company reported the quarterly results at 23 cents per share and revenue of $1.08 billion , slightly up from the analyst prediction of $1.06 billion. As a part of the earnings call , Scott plans to cut down almost 50 properties which have still not been disclosed . Also Yahoo is in talks with Alibaba over monetizing the portion of its stake in the firm.
Earnings for Sirius , eBay , driven by growth from Paypal , and Qualcomm all were better than forecasted which led these tech firms to bring back the indexes from a continued slump for days.