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Multinational Earnings Roundup – Apple, PepsiCo, IBM, Goldman Sachs and Yahoo..

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Its end of the June quarter and the earnings season has kicked-off in a style. We’ve already covered the Q1 performance of Indian outsourcing majors – Infosys Technologies and TCS – which has been kind of a mixed bag with Infy earnings way below market expectations.

Even global MNCs are gradually trickling with their earnings performances – be it Goldman Sachs, Yahoo Inc or Apple Inc. And, yeah… no points for guessing who has hogged the limelight – it’s none other than the makers of iPhones and iPads.

Ok, we’ve not had coverage of big MNC company results on Trak.in since quite some time now. Let’s have a check what these biggies are up to. For a change, let’s take a break from the earnings performances of Indian corporate houses.

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Apple Inc – At Rescue of the Tech Sector!

What can I say about the brand value of Apple? To sum it up, this company had kicked-off the trend for the humungous market for portable music players & smartphones by way of iPods & Iphones – and, now, it has marked a dawn of a new era by way of iPads and a resultant trend for Tablet devices.

Good news first – Technology bellwether Apple reported its best quarterly performance on the back of strong sales of iPhone (8.4 million) and overwhelming response for iPad tablets (3.3 million).

Apple’s fiscal third-quarter net income stood at $3.25 billion vis-à-vis $1.83 billion in the year ago period, which was higher than anticipated figures of the Wall Street analysts.

The revenues rose to a record $15.7 billion for the April-to-June quarter, higher by 61% than that of the previous year Q3 performance. This, by far, is the highest quarterly revenue ever for the most adorable company.

Yahoo Inc – Struggling to Make a Come Back!

Until now, I was hooked to various services of Yahoo such as mailing, instant messaging and finance section. But, Google seems to have overtaken it by far, over the last couple of years leaving Yahoo to struggle for quite some time now.

As expectedly, Yahoo’s second quarter earnings have fallen short of Wall Street expectations. Revenues for the quarter were up 2% to $1.6 billion compared with a year before period. The net income of the internet search firm rose to $213 million from $141 million in the same period last year.

In a latest, Yahoo begins testing Bing in search results. The company has started organic testing and paid search listings from Microsoft. The two companies’ small advertisers will use Microsoft’s ad-Centre search platform to buy keywords and put ads on Web pages.

Goldman Sachs – Sends Wall Street Reeling

Before the global recession, in investment giant Goldman Sachs – stood a sturdy reputation as America’s most successful, cynical and envied engine of capitalism. However, the legendry corporate house lost much of its sheen since the bank crossed paths with the US taxpayers and in the process became a party to the grand rescue package from the government.

The Q2 performance of Goldman Sachs was no immune to the ongoing global jitters and financial mess. The net income of the 141 year old stood at $613 million, down from $3.43 billion in the same period a year ago. A big fall to say the least! Revenues also slumped 36%, from $13.76 billion a year ago, to $8.84 billion this quarter.

The investment giant has had to take a hit of $550 million as Securities and Exchange Commission penalty linked to sub-prime mortgages, apart from a one-time charge of $600 million for a tax on industry bonuses in Britain.

PepsiCo – Beats Consensus!

US-based PepsiCo owns world’s largest portfolio of food, snacks and beverage brands. On July 20, the company reported a robust revenues and profits for the Q2 across its snack and beverage portfolio in key international markets.

The company results were above analyst’s expectations with a solid second quarter growth – this, especially after acquisition of its two anchor bottlers. The beverage giant recorded revenues of $14.8 billion, a 40% increase Y-o-Y driven by strong volume growth. The total operating profit came in at $2.5 billion from $2.2 billion in the same quarter a year ago.

The company is confident of meeting their full-year constant currency EPS target of 11-13% growth rate. The company has witnessed double digit volume growth in both India and China.

IBM Corp – Disappoints Investors

According to Washington Post,

IBM didn’t invent the computer… it invented the computer industry.

The New York-based IBM Corp, which is one of the world’s biggest technology services company, as well as one of the world’s leading computer-related products and services, has disappointed investors by reporting a decline in new technology service contracts in the Q2.

IBM’s Q2 performance could hardly better the revenues of $23.7 billion worked out pervious year, by 2%. The net profit came at $3.4 billion, as against $3.1 billion a year earlier. The company’s performance was hit by currency fluctuations and spending cuts. Revenues from IBM’s System z mainframe server products decreased 24% than a year ago period.

Nokia to come out with results tomorrow! Markets holding mixed expectations on it. Ring! Ring!…

  1. Aseem Rastogi says

    Interesting analysis about the different companies..dint know Goldman Sachs had fallen so much in Q2..So wat effect do u think the recent bad news abt IPhone will have on Apple??

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