They say the darkest hour is just before dawn, and HTC certainly hopes “they” are right. The company on Tuesday posted second-quarter financial results that were in line with its unaudited pre-announcement. Profit tumbled more than 80% to approximately $41.7 million on revenue that came in just under $2.4 billion. The bad news gets worse, however. HTC said that it may post an operating loss in Q3 2013 for the first time since before its IPO as revenue and gross margins both continue to slip. On the bright side, however, the company noted that the HTC One outperformed last year’s hero models and it helped HTC “establish strong brand awareness.” No shipment or sell-through numbers were provided. HTC’s full press release follows below. More →
With SoftBank undoubtedly eager to get this first Sprint report since its acquisition out of the way, Sprint on Tuesday night posted its results for the second quarter. Sprint’s Q2 2013 wireless service revenue climbed 8% to a record-high $7.2 billion and operating revenue totaled $8.87 billion, but that certainly wasn’t enough to distract attention from the $1.6 billion net loss it posted as the Nextel network was finally shuttered, a decline from the $1.4 billion net loss it reported in the same quarter last year. Sprint says it recaptured about 4 million Nextel subscribers as the service was discontinued. The carrier’s press release follows below. More →
AT&T’s spring quarter had a bit of that “Alice in Wonderland” quality. The mammoth carrier beat Wall Street’s consensus by 10% by adding 551,000 new contract subs, up sharply from 320,000 in the spring of 2012. AT&T also sold 6.8 million smartphones, the best spring quarter result ever, and wireless data revenue soared by nearly 20%. Yet AT&T’s profit still fell by 2.1%. This company is running as fast as it can just to stay in place — and this is a sign that the American mobile market may be ripe for some big changes. More →
Amazon has never given granular detail about its business, preferring to keep investors, analysts and the media as far away as possible from knowing the ins and outs of its operations. For investors and analysts alike, that’s okay. The Seattle-based retailer missed Wall Street expectations, losing 2 cents a share on $15.7 billion in revenue during the June quarter. Analysts were looking for Amazon to earn 5 cents a share on $15.73 billion in revenue. But despite the miss and the below revenue guidance, Jefferies analyst Brian Pitz raised his price target on Amazon to $350, citing operating income and consolidated segment operating income (CSOI) margins being better-than-expected. “This is now the 7th straight quarter operating income has exceeded the high end of guidance, despite continuing investments,” Pitz wrote in the note. More →
Apple scored a small but much-needed victory on Tuesday when it posted fiscal third-quarter results that beat analysts’ consensus, sending the stock soaring as much as 5% during Tuesday’s after-hours session. Net profit and revenue both beat the Street’s consensus and Apple’s June-quarter iPhone sales crushed estimates. But not everyone is celebrating. More →
Apple’s earnings on Tuesday night weren’t as bad as many were expecting, and neither was its fiscal fourth-quarter guidance. With expectations having come down drastically over fiscal 2013, many weren’t expecting much. But as the year gets older, Apple’s “rebirth” might be just about to begin. On the earnings call, CFO Peter Oppenheimer said the tech titan is going to ramp up its refreshes later this year. “We’re on track to have a very busy fall,” he said. More →
Apple shares closed above $600 on July 23rd last year and then fell sharply on the 24th when Apple posted a huge earnings miss for fiscal Q3 2012. The stock recovered quickly though, and then skyrocketed to $705 ahead of the iPhone 5 launch in late September. The rest, as they say, is history. Apple shares are now down 40% since hitting that record high last year and the road to recovery remains unclear. We’re still about two months away from seeing anything new and exciting from Apple, and the company’s fiscal third-quarter results will likely give us a good idea of what to expect for much of the current quarter until Apple finally launches its next-generation iPhones and iPad, which are expected to be released in late September. In the meantime, Apple’s fiscal Q3 2013 numbers are now in. More →
The albatross was a sacred animal to old mariners. The punishment for killing the big bird on a sailing ship was having to carry it around your neck until it rotted away. This may be a close analog to what Google must now suffer after the rash decision to buy the pride of Chicago a few years ago. Motorola’s non-GAAP operating losses exploded to $218 million per quarter during the spring period. Just a year ago, they were at the somewhat tolerable level of $49 million per quarter. Google is now staring at the possibility of bleeding a billion dollars per year thanks to its pet albatross. More →
Verizon on Thursday posted its results for the second quarter of 2013. Wall Street was looking for earnings to climb 14% to $0.72 per share on sales totaling $29.81 billion, and Verizon narrowly beat the consensus, posting $0.73 in EPS on light revenues of $27.8 billion. In the same quarter last year, Verizon reported a profit of $0.64 per share on $28.55 billion in sales. Verizon’s earnings totaled $2.25 billion last quarter including a one-time pension benefit, up from $1.83 billion in the same quarter last year. Verizon said it added 1 million net new wireless subscribers in Q2 2013, including 941,000 contract customers. Verizon now reports 100.1 million total retail connections, which is up 6.3% over Q2 2012. About 64% of Verizon’s contract wireless customers were smartphone users at the end of the second quarter, and Verizon said it activated 3.9 million iPhones during the June quarter, up 44% on-year.
Overall, Nokia’s second-quarter sales and earnings came in above expectations thanks to the strong network unit performance. But the smartphone unit volume was light at 7.4 million units, about 700,000 below consensus. The real surprise came from the smartphone average sales price (ASP), which plunged from 191 euros to 157 euros in just three months. This implies that sales of the flagship Lumia 920 dropped sharply, while demand moved rapidly towards the cheap Lumia 520. This might be OK in the long run, if Nokia can ship big volumes of low-end smartphones with decent margins. More →
Nokia on Thursday posted earnings results for the second quarter of 2013. The company narrowed its loss to €115 million, or approximately $151 million, which is a dramatic improvement from the €824 million loss the vendor posted in the same quarter last year. But Nokia’s Q2 revenue fell to €5.7 billion, or $7.4 billion, down substantially from the €7.5 billion in sales posted in Q2 2012. Where Lumia smartphone sales are concerned, Nokia sold a record 7.4 million handsets into channels during the second quarter. North American Lumia sales fell 17% from 600,000 units in Q2 2012 to 500,000 units in Q2 2013, however, despite the launch of Nokia’s first flagship Windows Phone 8 device for Verizon Wireless. Nokia’s total handset shipment volume fell 27% on-year from 83.7 million handsets in Q2 2012 to 61.1 million last quarter.
Nokia reports its spring quarter on Thursday — and the stakes are very high, indeed. The substantial spring revenue weakness from BlackBerry and HTC implies that many second-tier brands are now in serious trouble with their brand new product launches. Samsung’s earnings miss was a shocker because the South Korean giant was supposed to have a wide open shot at dominating spring sales, particularly because Apple’s iPhone sales started slowing down significantly in the March quarter. The industry is now staring at the possibility of the entire high-end smartphone market slowing down much faster than expected. But Nokia is not dependent on high-end smartphones to the extent that BlackBerry and HTC are — and that makes Nokia’s spring report absolutely riveting. More →
Samsung shares tumbled almost 4% on Friday as the company pre-announced record second-quarter earnings that still missed analysts’ sky-high consensus. The South Korean consumer electronics giant estimates that Q2 2013 profit came in at a record-high $8.3 billion on $50 billion in revenue, but analysts were looking for a quarterly profit of more than $8.9 billion. Despite the fact that Galaxy S4 shipments remained strong last month — Samsung reportedly topped 20 million units shipped cumulatively earlier this week — analysts are still worried that Samsung cannot maintain the rapid growth it has enjoyed in its smartphone division. Samsung’s Q2 earnings estimate of $8.3 billion represents a 47% increase over the same quarter in 2012 and an 8% improvement over the first quarter this year. The company’s press release follows below. More →