Earnings roundup

Microsoft profit rebounds by 48% chief Jeff Bezos said rapid growth in Kindle sales, as well as other electronics, helped boost revenue. chief Jeff Bezos said rapid growth in Kindle sales, as well as other electronics, helped boost revenue. (Ted S. Warren/Associated Press/File)
By Associated Press
July 23, 2010

E-mail this article

Invalid E-mail address
Invalid E-mail address

Sending your article

Your article has been sent.

Text size +


Microsoft Corp. said that its net income surged 48 percent in the most recent quarter, the latest sign that businesses are again spending money on technology.

Microsoft’s results were stronger than Wall Street had expected.

Big businesses stopped replacing aging computers, servers, and software during the worst of the recession. Microsoft makes the majority of its money from selling Windows software for PCs and servers, plus Office and other business software.

Windows sales ballooned in the quarter, particularly in copies for businesses. That helped Microsoft’s net income jump to $4.52 billion, or 51 cents per share.

Revenue rose 22 percent to $16.04 billion.

Shares of the Redmond, Wash., company fell 3 cents to $25.81 in extended trading after the release of results.

2d-quarter income higher at Amazon

Low$77.51 Inc. said yesterday that its second-quarter income jumped, bolstered by shoppers who spent more with the online retailer even as consumer confidence fell overall.

But the Seattle company’s earnings fell below analyst expectations, and its stock dove in after-hours trading.

For the period, Inc. earned $207 million, or 45 cents per share. That is a 45 percent increase from $142 million, or 32 cents per share, in the same quarter last year.

Analysts had expected 54 cents per share.

Revenue climbed 41 percent to $6.6 billion.

Revenue increased 46 percent in North America to $3.6 billion, and 35 percent to $3 billion elsewhere.

As usual, Amazon did not provide details about sales of its Kindle e-reader, which was joined in the second quarter by a formidable competitor, Apple Inc.’s iPad.

Earlier this week, Amazon did say that Kindle sales have risen since it cut its price in June. In an effort to push more Kindle sales, Amazon dropped the price of the Kindle by $70, to $189.

Optimistic 3M lifts guidance for year


3M Co., which makes everything from Post-its to films for flat-screen TVs, said it is optimistic about the pace of the global economic recovery and raised its full-year outlook yesterday.

The Maplewood, Minn., company, considered an economic bellwether because of its broad base of products, also said net income rose 43 percent for the quarter ended in June. Its positive outlook, along with rosy forecasts from UPS, AT&T, and Caterpillar, helped boost the stock market.

For the second quarter, 3M’s revenue rose 17.7 percent, with most of the growth in Asia (up 42 percent) and Latin America and Canada (21 percent.) US sales rose 9 percent, and sales in Europe rose 4 percent, held back by the weak euro.

3M’s second-quarter profit jumped 43 percent to $1.12 billion, or $1.54 per share, compared with $783 million, or $1.12 per share, a year earlier.

Revenue rose to $6.73 billion from $5.72 billion a year ago. Analysts had expected a profit of $1.48 per share on revenue of $6.66 billion.

Wireless revenue drives AT&T growth


AT&T, the largest US phone company, reported second-quarter profit yesterday that beat analysts’ estimates as customers snapped up wireless devices like Apple’s iPhone.

Earnings, excluding a one-time gain, rose to 61 cents a share, AT&T said. Analysts projected 57 cents. Sales advanced less than 1 percent to $30.8 billion.

Dallas-based AT&T is relying on its exclusive contract to carry the iPhone in the United States to fend off competition from Verizon Wireless, which is touting smartphones such as the Droid X. AT&T, which gets more than 40 percent of its sales from its wireless unit, activated 3.2 million iPhones in the period and gained a net 496,000 contract subscribers.

AT&T’s net income in the three months through June rose 26 percent to $4.02 billion, or 68 cents a share, from $3.2 billion, or 54 cents, a year earlier. The carrier had a gain of 7 cents a share from an exchange of Telmex Internacional stock for America Movil stock.

The reported results exclude business-software provider Sterling Commerce, which AT&T agreed to sell to IBM in May. Including results from Sterling, revenue was $30.9 billion.

Times Co. reports stronger ad sales


The New York Times Co., which owns The Boston Globe and, said its advertising revenue stopped falling for the first time in years during the second quarter.

It’s a significant milestone because the publisher of The New York Times, the International Herald Tribune, and 15 other daily newspapers pays most of its bills by selling ads.

Net income fell 18 percent from a year ago, when the Times Co. booked a big one-time tax gain. It earned $32 million, or 21 cents per share, in the latest quarter. That compares with $39.1 million, or 27 cents per share, a year ago.

Revenue climbed 1.2 percent to $590 million, while operating expenses fell 4.3 percent. The company managed to keep ad revenue flat in the second quarter, as a 21 percent jump in digital ad sales offset a 6 percent decline in print.

Chief executive Janet Robinson said the company expects those trends to continue in the third quarter.

Revenue at the New England Media Group, which includes the Globe, fell 2.8 percent to $106.4 million in the second quarter compared to the year-ago period. Advertising revenue decreased 9.1 percent to $53.3 million, while circulation revenue rose 4.3 percent to $42.2 million due to higher subscription and newsstand prices.

The second quarter also included a $9.1 million pretax gain from the sale of 50 of the Times Co.’s 750 units in New England Sports Ventures, which includes the Red Sox, Fenway Park, and the NESN cable channel. The Times Co. maintains a 16.6 percent stake in the sports group and plans to continue exploring a sale of its remaining interest.

JetBlue sees profit, forecasts growth


JetBlue Airways yesterday joined most of the nation’s largest airlines in posting a profit, as more passengers returned to the sky in the second quarter.

JetBlue also issued an optimistic outlook for the rest of the year, forecasting higher revenue and more flying to the destinations it serves. The company said it will partner with El Al Israel Airlines, which will allow travel on both airlines on a single ticket.

In the second-quarter, JetBlue, of Forest Hills, Queens, earned $30 million, or 10 cents per share. That compares to $20 million, or 7 cents per share, in the same quarter last year. Revenue increased to $939 million from $807 million a year ago.

JetBlue ended the quarter with about $1 billion in unrestricted cash and short-term investments. That’s about the same as at the end of the first three months of the year.

The airline said demand is improving, as passenger traffic rose almost 9 percent in the second quarter. JetBlue expects passenger revenue per available seat mile to rise by 12 to 15 percent in the third quarter..