U.S. stocks move higher in after-hours session on positive tech earnings
Published Jul 18, 2012 05:55PM ET
IBM posted second-quarter earnings excluding items of USD3.51 per share, up 14% from USD3.09 a share during the same period a year ago, while revenue dipped by 3% to USD25.8 billion from USD26.67 billion a year ago.
Earnings beat analyst forecasts though revenue fell slightly short, with a Thomson Reuters consensus forecast pegging earnings excluding items of USD3.42 a share on USD26.28 billion in revenue.
Software sales were strong for the company, though currency impacts hurt results.
IBM stocks were up 2.18% at USD192.70 in after-hours trading.
Online marketplace eBay reported revenue for the second quarter increased 23% to USD3.4 billion, compared to the same period of 2011.
Net income hit USD692 million, or USD0.53 per share, up from USD283 million, or USD0.22 cents per share, in the same period a year earlier.
The company attributed the increase to strong top-line growth and healthy business at its PayPal unit, though revenue was partially offset by increased investment in shopping experiences as well as impacts from past acquisitions.
Analysts were expecting eBay to report earnings at USD0.55 a share on USD3.36 billion in revenue, according to a Thomson Reuters consensus.
The company's stock was up 5.91% at USD42.85.
Qualcomm, meanwhile, reported revenues of USD4.63 billion, up 28% year-over-year. The chipmaker's profit came to USD1.207 billion, or USD0.69 per share, compared with a profit of USD1.035 billion or USD0.61 per share in the same quarter a year earlier.
Earnings missed Reuter Thomson consensus calls for a profit of USD0.86 cents a share on sales of $4.68 billion.
The company said growth estimates for 3G/4G mobile phone device shipments for calendar-year 2012 have moderated slightly.
Qualcommm stocks were up 5.89% at USD59.35 a share
Financial stocks were active as well.
Earlier, Bank of America reported net income of USD2.50 billion, or USD0.19 per diluted share, for the second quarter of 2012, compared to a net loss of USD8.8 billion, or USD0.90 per diluted share in the second quarter of 2011.
The year-ago quarter included a total of USD18.2 billion in pretax charges for certain mortgage-related items and other selected adjustments, including provisions for representations and warranties and goodwill impairment.
Last year at this time, the bank wrote off USD20.7 billion in mortgage-related and other charges.
The bank's revenue came to USD21.97 billion, up from USD13.24 billion a year ago.
The bank's shares were up 0.53% USD7.57 a share.
American Express reported earnings of USD1.15 a share, beating expectations for USD1.09 a share.
The financial services firm reported sales of USD7.97 billion, below estimates for $8.1 billion.
The company's stock was down 0.84% in after-hours trading at USD57.80.
Aerospace and manufacturing giant Honeywell International reported profits on the upside as well. Second-quarter earnings rose to USD905 million, or USD1.14 per share, from USD810 million or USD1.02 per share a year earlier.
Analysts' average forecast called for USD1.11 per share, according to Thomson Reuters. Total sales rose 4% to USD9.44 billion from USD9.09 billion. The company pledged to continue cutting costs going forward.
Shares were down 0.05% at USD58.15.
At the close of U.S. trading, the Dow Jones Industrial Average ended up 0.81%, the S&P 500 index was up 0.67% while the Nasdaq Composite index was up 1.12%.
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