Top 10 for 10/15 - 10/19: Google Results Rile Markets; Citi Has Huge Week; SoftBank, Sprint Make It Official; A123 Goes Belly-Up
Tweet Send to a Friend
Get Alerts GOOG Hot Sheet
Trade GOOG Now!
1. Google's (Nasdaq: GOOG) third-quarter results were release early Thursday afternoon, about four hours ahead of schedule. The SEC filing containing the numbers sent a shock through U.S. markets and making matters worse was Google's actual results.
Third-quarter EPS was $9.03, which was well below the analyst estimate of $10.65. Non-GAAP operating income in the third quarter of 2012 was $3.80 billion. his compares to non-GAAP operating income of $3.63 billion, or 37% of revenues, in the third quarter of 2011. Revenue for the quarter came in at $14.1 billion, up 45% from last year. Ex-TAC revenues were $11.33 billion, which was below the Wall Street consensus of $11.86 billion.
The dip trimmed about $24 billion of market cap from Google from the close on Wednesday.
2. Following chatter last week, Sprint (NYSE: S) and SoftBank put it on paper this week with a $20.1 billion deal.
Under terms of the deal include: SoftBank paying $12.1 billion to be distributed to Sprint stockholders and $8.0 billion of new capital to strengthen Sprint’s balance sheet. Through this transaction, approximately 55% of current Sprint shares will be exchanged for $7.30 per share in cash, and the remaining shares will convert into shares of a new publicly traded entity, New Sprint. In total, SoftBank will own 70 percent of Sprint when all is said and done.
3. Citigroup (NYSE: C) had a big week, reporting better than expected Q3 results on Monday and Vikram Pandit aburptly stepping down as CEO on Tuesday.
4. Apple (Nasdaq: AAPL) sent out invitations to an October 23rd special event, which many believe will be the introduction of the iPad mini. The event is notable being: 1) it could be the first iPad event not in the spring, and 2) a smaller tablet is some Steve Jobs didn't jive with. However, it could be another serious revenue driver for Apple should timing and pricing be right. With Microsoft's Surface tablet debuting next Friday and Amazon (Nasdaq: AMZN), Banes & Noble (NYSE: BKS), and others already in the 8-inch tablet segment, Apple will need a stronger showing to attract new customers.
5. Obama-backed A123 Systems, Inc. (Nasdaq: AONE) filed for chapter 11 bankruptcy this week, while simultaneously looking to unload its automotive business assets, including all of its automotive technology, products and customer contracts, to Johnson Controls (NYSE: JCI) while getting debtor-in-possession financing from the auto supply giant.
6. Following a rather strong start to the week, U.S. markets and stock gave up most, if not all, of the gains by Friday. The catalyst might have been Google's early report, though Thursday was spattered by tepid quarterly results from the likes of Microsoft, AMD, and an outlook cut at Marvell (Nasdaq: MRVL).
The S&P 500 closed at 1428.59 on October 12th, rose to 1,464.02 on Thursday, and closed Friday at 1,433.19. The Dow Jones Industrial Average took a similar path, closing at 13,328.85 last Friday, rising to 13,588.73 on Thursday, and dropping to a close of 13,343.51 today.
7. The U.S. Bureau of Labor Statistics said that September CPI rose 0.6 percent on a seasonally-adjusted basis. Over the last 12 months, the all items index increased 2.0 percent before seasonal adjustment.
Excluding more volatile measures like food & energy, core CPI rose just 0.1 percent.
The Street was looking for CPI to rise 0.5 percent and core CPI up 0.2 percent. For more color, click here.
8. Yahoo! Inc. (Nasdaq: YHOO) successfully hired Henrique de Castro from Google (Nasdaq: GOOG) following months of courting. The firm appointed de Castro as its new COO. According to a filing on Monday, "Mr. de Castro’s employment will commence on or before January 22, 2013, on a date to be mutually agreed upon after he has satisfied or been relieved of his employment obligations to his current employer. There are no arrangements or understandings between Mr. de Castro and any other persons pursuant to which he was selected as Chief Operating Officer."
For more, click here.
9. Some of the more notable earnings reports from the week include:
Names like PulteGroup (NYSE: PHM), Toll Brothers (NYSE: TOL), Hovnanian Enterprises (NYSE:: HOV), Beazer (NYSE: BZH), and others traded at or near annual highs during the week.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
Third-quarter EPS was $9.03, which was well below the analyst estimate of $10.65. Non-GAAP operating income in the third quarter of 2012 was $3.80 billion. his compares to non-GAAP operating income of $3.63 billion, or 37% of revenues, in the third quarter of 2011. Revenue for the quarter came in at $14.1 billion, up 45% from last year. Ex-TAC revenues were $11.33 billion, which was below the Wall Street consensus of $11.86 billion.
The dip trimmed about $24 billion of market cap from Google from the close on Wednesday.
2. Following chatter last week, Sprint (NYSE: S) and SoftBank put it on paper this week with a $20.1 billion deal.
Under terms of the deal include: SoftBank paying $12.1 billion to be distributed to Sprint stockholders and $8.0 billion of new capital to strengthen Sprint’s balance sheet. Through this transaction, approximately 55% of current Sprint shares will be exchanged for $7.30 per share in cash, and the remaining shares will convert into shares of a new publicly traded entity, New Sprint. In total, SoftBank will own 70 percent of Sprint when all is said and done.
3. Citigroup (NYSE: C) had a big week, reporting better than expected Q3 results on Monday and Vikram Pandit aburptly stepping down as CEO on Tuesday.
4. Apple (Nasdaq: AAPL) sent out invitations to an October 23rd special event, which many believe will be the introduction of the iPad mini. The event is notable being: 1) it could be the first iPad event not in the spring, and 2) a smaller tablet is some Steve Jobs didn't jive with. However, it could be another serious revenue driver for Apple should timing and pricing be right. With Microsoft's Surface tablet debuting next Friday and Amazon (Nasdaq: AMZN), Banes & Noble (NYSE: BKS), and others already in the 8-inch tablet segment, Apple will need a stronger showing to attract new customers.
5. Obama-backed A123 Systems, Inc. (Nasdaq: AONE) filed for chapter 11 bankruptcy this week, while simultaneously looking to unload its automotive business assets, including all of its automotive technology, products and customer contracts, to Johnson Controls (NYSE: JCI) while getting debtor-in-possession financing from the auto supply giant.
6. Following a rather strong start to the week, U.S. markets and stock gave up most, if not all, of the gains by Friday. The catalyst might have been Google's early report, though Thursday was spattered by tepid quarterly results from the likes of Microsoft, AMD, and an outlook cut at Marvell (Nasdaq: MRVL).
The S&P 500 closed at 1428.59 on October 12th, rose to 1,464.02 on Thursday, and closed Friday at 1,433.19. The Dow Jones Industrial Average took a similar path, closing at 13,328.85 last Friday, rising to 13,588.73 on Thursday, and dropping to a close of 13,343.51 today.
7. The U.S. Bureau of Labor Statistics said that September CPI rose 0.6 percent on a seasonally-adjusted basis. Over the last 12 months, the all items index increased 2.0 percent before seasonal adjustment.
Excluding more volatile measures like food & energy, core CPI rose just 0.1 percent.
The Street was looking for CPI to rise 0.5 percent and core CPI up 0.2 percent. For more color, click here.
8. Yahoo! Inc. (Nasdaq: YHOO) successfully hired Henrique de Castro from Google (Nasdaq: GOOG) following months of courting. The firm appointed de Castro as its new COO. According to a filing on Monday, "Mr. de Castro’s employment will commence on or before January 22, 2013, on a date to be mutually agreed upon after he has satisfied or been relieved of his employment obligations to his current employer. There are no arrangements or understandings between Mr. de Castro and any other persons pursuant to which he was selected as Chief Operating Officer."
For more, click here.
9. Some of the more notable earnings reports from the week include:
- McDonalds Corp. (NYSE: MCD) reported Q3 EPS of $1.43, $0.05 worse than the analyst estimate of $1.48. Revenue for the quarter came in at $7.15 million versus the consensus estimate of $7.15 million.
- Microsoft Corp. (Nasdaq: MSFT) reported Q1 GAAP EPS of $0.53 and adjusted EPS of $0.65, versus the analyst estimate of $0.56. Revenue for the quarter came in at $16.01 billion, or $17.364 billion Non-GAAP, versus the consensus estimate of $16.42 billion.
- General Electric (NYSE: GE) reported Q3 EPS of $0.36, in-line with the analyst estimate of $0.36. Revenue for the quarter came in at $36.3 billion versus the consensus estimate of $36.81 billion.
- Coca-Cola Co. (NYSE: KO) reported Q3 EPS of $0.51, $0.01 better than the analyst estimate of $0.50. Revenue for the quarter came in at $12.3 billion versus the consensus estimate of $12.39 billion.
- Johnson & Johnson (NYSE: JNJ) reported Q3 EPS of $1.25, $0.04 better than the analyst estimate of $1.21. Revenue for the quarter came in at $17.1 billion versus the consensus estimate of $16.95 billion.
- IBM (NYSE: IBM) reported Q3 EPS of $3.62, in-line with the analyst estimate of $3.62. Revenue for the quarter came in at $24.7 billion versus the consensus estimate of $25.38 billion.IBM reaffirmed FY2012 guidance.
- Intel (Nasdaq INTC) reported Q3 EPS of $0.60, $0.10 better than the analyst estimate of $0.50. Revenue for the quarter came in at $13.5 billion versus the consensus estimate of $13.23 billion.
- Bank Of America Corp. (NYSE: BAC) reported Q3 EPS of $0.00, $0.07 better than the analyst estimate of ($0.07). Revenue for the quarter came in at $22.53 billion versus the consensus estimate of $21.89 billion.
- PepsiCo, Inc. (NYSE: PEP) reported Q3 EPS of $1.20, $0.04 better than the analyst estimate of $1.16. Revenue for the quarter came in at $16.65 billion versus the consensus estimate of $16.9 billion.
- eBay, Inc. (Nasdaq: EBAY) reported Q3 EPS of $0.55, $0.01 better than the analyst estimate of $0.54. Revenue for the quarter came in at $3.4 billion versus the consensus estimate of $3.41 billion.
- Nokia Corp. (NYSE: NOK) reported Q3 non-IFRS loss of €0.07 per share and reported loss of €0.26 per share. Last year's non-IFRS EPS was €0.03 while reported loss was €0.02 per share.
- Chipotle Mexican Grill (NYSE: CMG) reported Q3 EPS of $2.27, $0.03 worse than the analyst estimate of $2.30. Revenue for the quarter came in at $700.5 million versus the consensus estimate of $702.22 million.
- Advanced Micro Devices, Inc. (NYSE: AMD) reported Q3 EPS of ($0.20), $0.05 worse than the analyst estimate of ($0.15). Revenue for the quarter came in at $1.27 billion versus the consensus estimate of $1.28 billion.
Names like PulteGroup (NYSE: PHM), Toll Brothers (NYSE: TOL), Hovnanian Enterprises (NYSE:: HOV), Beazer (NYSE: BZH), and others traded at or near annual highs during the week.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
You May Also Be Interested In
- UPDATE: Applied Materials, Inc. (AMAT) Tops Q2 EPS by 3c, Offers Guidance
- Agilent (A) Tops Q2 EPS by 9c, Trims FY13 Outlook; Adds to Buyback, Will Cut Jobs
- 50-Day SMA Crossers 05/20: (ELN) (ACI) (AAPL) Above; (MRK) (TLAB) (CLSN) Below
Create E-mail Alert Related Categories
Special ReportsRelated Entities
Citi, Bank of America, Standard & Poor's, Steve Jobs, Bankruptcy, Barack Obama, Vikram Pandit, Earnings, Housing Starts
Login with Facebook
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
