Intel also had a negative reaction to its first-quarter report, despite reporting solid earnings. The world's largest chipmaker reported non-GAAP earnings of 56 cents a share, on revenue of $12.9 billion for the first quarter. Analysts surveyed by Thomson Reuters were expecting EPS of 50 cents and $12.84 billion in sales. Second-quarter guidance was higher than anticipated, but margins are expected to fall quarter over quarter, and that caused pressure on the stock. For the second quarter ending in June, Intel expects revenue of $13.6 billion, plus or minus $500 million, and margins between 62% and 63%, down from 65.1% in the first quarter. Wall Street estimates call for $13.45 billion in revenue. Intel shares ended the week down 1.74% at $27.60.
Sirius XM Radio ( SIRI) was also in the news this week, as a judge dismissed Howard Stern's lawsuit against his employer. Shock jock Stern claimed he was owed an additional $300 million from his employer for meeting subscriber goals, a claim Sirius said was untrue. Judge Barbara Kapnick heard arguments from both sides and dismissed the case "with prejudice," meaning both Stern and his manager Don Buchwald cannot refile a suit with similar claims. In her decision, Judge Kapnick noted that Stern's contract had "clear, unambiguous language," and as such, he was not entitled to any further compensation. Shares of Sirius ended the week down 0.22% at $2.22.
eBay saw explosive growth in its PayPal unit, which helped it beat first-quarter estimates. PayPal ended the quarter with 109.8 million registered accounts, and revenue soared 32% year over year because of "increased penetration on eBay as well as continued merchant and consumer adoption." For the full quarter, eBay reported non-GAAP EPS of 55 cents on $3.28 billion in sales. Thomson Reuters said analysts on average were expecting EPS of 52 cents on revenue of $3.15 billion. Shares of the online auction giant ended the week up 11.54% at $40.29.
Earnings from F5 Networks were exceptional as the networking-gear maker beat second-quarter estimates. F5's second quarter revenue came in at $339.6 million, up from $277.6 million in the prior year's quarter. Analysts surveyed by Thomson Reuters were looking for sales of $335.4 million. The networking specialist earned $1.09 a share during the quarter, better than the $1.07 a share analysts were looking for. For the third quarter ending in June, F5 believes it will generate between $350 million and $355 million in revenue and earn between $1.12 and $1.14 a share. Analysts are expecting revenue of $354.22 million and earnings of $1.14 a share. Shares of F5 Networks ended the week up 7.79% at $131.63.
Verizon reported strong first-quarter earnings on Thursday, helped by solid customer additions in its wireless unit. The telecom company reported EPS of 59 cents on $28.24 billion in revenue. Analysts polled by Thomson Reuters were looking for EPS of 58 cents on $28.17 billion in revenue. The New York-based telecom giant added 734,000 retail net customers during the quarter, including 501,000 retail postpaid customers. Verizon continued to expand its FiOS business, adding 193,000 net new FiOS Internet connections and 180,000 net new FiOS Video connections. It now has 5 million and 4.4 million customers, respectively. Shares of Verizon ended the week up 3.95% at $38.73.
Intel competitor AMD ( AMD) beat Wall Street estimates, helping push shares higher. Excluding items, AMD reported EPS of 12 cents on $1.59 billion in revenue during the first quarter. Analysts surveyed by Thomson Reuters were looking for EPS of 9 cents on $1.56 billion in revenue. For the second quarter, AMD expects revenue to increase 3% sequentially, plus or minus 3 percentage points. Shares of AMD ended the week up 0.39% at $7.76.
Next week the excitement continues with earnings from Apple ( AAPL), Amazon.com ( AMZN), Netflix ( NFLX) and Baidu ( BIDU). Interested in more on Baidu? See TheStreet Ratings' report card for this stock. Check out our new tech blog, Tech Trends. Follow TheStreet Tech on your wireless devices. -- Written by Chris Ciaccia in New York >To follow the writer on Twitter, go to http://twitter.com/commodity_bull. >To submit a news tip, send an email to: firstname.lastname@example.org