Earnings Bonanza: Tech Weekly Recap

NEW YORK ( TheStreet) -- I wish Michael Landon were still alive because there's only one way to describe this week in tech; bonanza, as in earnings bonanza.

Reports from tech heavyweights such as Yahoo! ( YHOO), IBM ( IBM), Google ( GOOG), Microsoft ( MSFT) and a host of others, as well a few high-profile IPOs were the talk of tech this week, along with a new CEO in Silicon Valley.

The show started off on Monday, when Yahoo! appointed Google's Marissa Mayer as its new CEO, shocking everyone. Mayer, who was employee no. 20 at the search giant, was in charge of Google's Local efforts, including Location, Maps and Local services.

There was plenty of skepticism surrounding the appointment, as Mayer has never run a public company, much less dealt with the laundry list of issues facing Yahoo!, as it tries to keep itself relevant in a constantly changing tech environment.

Yahoo! released second-quarter earnings a day later, beating Wall Street estimates, as display revenue and search revenue showed modest gains year over year.

The Sunnyvale, Calif.-based Internet giant reported a non-GAAP profit of $190 million, or 27 cents a share, on revenue of $1.081 billion, aided by a 1% rise in display revenue and a 4% rise in search revenue. Analysts polled by Thomson Reuters expected Yahoo! to report earnings of 23 cents a share on $1.095 billion in revenue

Shares of Yahoo! ended the week higher, up 1.11% to close at $15.91.


Intel ( INTC) reported a second-quarter earnings beat on Tuesday, but sent a mixed picture for the rest of 2012.

The no.1 chip maker earned 57 cents a share on $13.5 billion in revenue, up from $13.03 billion in the year-ago quarter. Analysts surveyed by Thomson Reuters were looking for earnings of 52 cents a share on $13.56 billion in sales.

Despite the earnings beat, Intel lowered its guidance for fiscal 2012, saying it expects year-over-year revenue to grow between 3% and 5%, down from its prior view of high single-digit growth. For the third-quarter, Intel expects $14.3 billion in revenue, plus or minus $500 million. Analysts surveyed by Thomson Reuters had predicted the chip maker will generate $14.6 billion in revenue.

Even with lowered guidance, Intel shares manged to eke out a 1.07% gain for the week to wind up at $25.52.

Wednesday was an extremely heavy day for earnings reports, coming from all sectors of technology, including semiconductors, online retail, virtualization, and networking.

Qualcomm ( QCOM) missed third-quarter earnings and lowered guidance, but investors responded positively, sending shares higher as it looks like the company is finally able to meet demand.

The San Diego-based firm reported third-quarter earnings of 85 cents a share on $4.63 billion in revenue. Analysts polled by Thomson Reuters expected the semiconductor company to generate a profit of 86 cents per share on $4.68 billion in revenue.

Qualcomm also lowered its fourth-quarter guidance. It now expects non-GAAP earnings of 78 to 84 cents a share on revenue of $4.45 billion to $4.85 billion. Wall Street's current consensus view is for a profit of 89 cents a share in the September-ended period on revenue of $4.89 billion. Qualcomm now expects between 875 million and 935 million 3G/4G devices will ship, up 14% year-over-year.

Despite the earnings disappointment, Qualcomm shares jumped 4.91% for the week to wind up at $57.68.

Online retailing giant eBay ( EBAY) blew past earnings expectations, led by strength its in PayPal and Marketplaces division.

eBay reported second-quarter earnings of 56 cents a share on $3.39 billion in revenue. PayPal revenue rose 26% year-over-year to $1.357 billion, as the mobile payment story continues to play out.

Analysts polled by Thomson Reuters were looking for 55 cents a share in earnings on $3.41 billion in revenue.

eBay provided third-quarter and full-year guidance largely in line with analysts' forecasts. The company expects non-GAAP earnings for the third-quarter of 53 to 55 cents a share. Revenues are expected to be within a range of $3.3 billion to $3.4 billion. Analysts polled by Thomson Reuters are currently looking for a profit of 55 cents a share on $3.4 billion in revenue.

Shares of eBay surged this week, gaining 12.27% to close at $44.85.

IBM also reported quarterly results on Wednesday, raising its full-year earnings guidance past Wall Streets' expectations.

The Armonk, N.Y.-based tech giant earned $3.51 a share in the second-quarter, up from $3.09 a share in the year-ago quarter. Analysts surveyed by Thomson Reuters were looking for earnings of $3.42 a share. Second-quarter revenue came in at $25.78 billion, down 3% year-over-year and well short of the consensus view of $26.27 billion. Currency translation hit revenue by approximately $1 billion.

IBM raised its expectations for fiscal 2012, saying it expects to earn at least $15.10 per share. Wall Street is looking for $15.06 per share.

Shares of IBM gained 3.46% this week to close out at $192.45.

EMC ( EMC) and VMware ( VMW) reported preliminary earnings and swapped executives on Tuesday as the companies try to better position themselves for virtualization growth.

EMC President and Chief Operating Officer of Information Infrastructure Products Pat Gelsinger will succeed VMware's Paul Maritz as CEO in September. Maritz will join EMC as chief strategist but remain on the VMware board. Also in September, EMC's current chief financial officer, David Goulden, will become EMC's operating chief.

The companies reported preliminary earnings results that were largely inline with Wall Street expectations. VMware will report final results July 23, and EMC will report July 24.

Shares of EMC and VMware gained 5.92% and 5.18% this week to close out at $25.05 and $89.80, respectively.

F5 Networks ( FFIV) met analysts' estimates in its third-quarter results on Wednesday, despite uncertainty about information technology spending.

F5 earned $1.14 a share on $352.6 million of revenue, largely inline with estimates. Analysts polled by Thomson Reuters were looking for $1.14 per share in earnings on $352.86 million in revenue.

There is, however, some cautiousness in spending, according to the networking specialist. F5 expects fourth-quarter revenue to between $360 million and $370 million, and earnings between $1.16 and $1.19 a share. Analysts surveyed by Thomson Reuters are looking for sales of $366.7 million and earnings of $1.18 a share.

Shares of F5 Networks soared 5.15% during the week to end at $96.10.

The major news items Thursday were earnings from Microsoft and Google.

Redmond, Wash.-based Microsoft reported fourth-quarter non-GAAP earnings of 73 cents a share on $18.06 billion in revenue. Analysts polled by Thomson Reuters were looking for earnings of 62 cents a share in the quarter on revenue of $18.13 billion.

GAAP results for the quarter showed Microsoft's first quarterly loss ever, a loss of 6 cents per share, which reflected the previously disclosed massive $6.19 billion goodwill impairment charge Microsoft took for its advertising business from its aQuantive acquisition.

Shares of Microsoft gained 2.47% this week to finish at $30.11.

Google sped past Wall Street's earnings forecast for its second-quarter results and enjoyed 21% year-over-year revenue growth.

Excluding items, Google earned $10.12 a share in the June-ended period, up from $8.74 in the prior year's quarter. Analysts surveyed by Thomson Reuters were looking for earnings of $10.04 a share. Revenue, excluding traffic acquisition costs, came in at $8.36 billion, just below the consensus view of $8.41 billion.

Shares of Google jumped 5.95% this week to finish at $610.82.

Tech earnings took a break on Friday, but there were still two high-profile IPOs, as investors clamored for shares.

Palo Alto Networks ( PANW) shares soared 27% in their debut Friday, as investors clamored for a piece of the networking security specialist.

The company priced its IPO at $42 a share Thursday night, above the expected range of $38 to $40 a share, which had been raised earlier in the week as investors sought to get a piece of the fast-growing technology company. There were 6.2 million shares sold in the offering. Palo Alto shares closed at $53.13.

Kayak Software ( KYAK) jumped 27.6% in its first day of trading.

The online travel firm priced its IPO at $26 a share Thursday night, above the expected range of $22 to $25, selling 3.5 million shares in the offering.

Next week is the mother of all earnings weeks in tech. Not only do we get results from Apple ( AAPL), but we also hear from Netflix ( NFLX), AT&T ( T), Facebook ( FB), Zynga ( ZNGA) and Amazon ( AMZN). Enjoy the weekend everyone and we'll do it all again next week!

Interested in more on Apple? 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

>Contact by Email.

More from Technology

How Does Facebook Make Money? Six Primary Revenue Streams

How Does Facebook Make Money? Six Primary Revenue Streams

Turnaround Tuesday: Bitcoin, Amazon and Microsoft -- Oh My!

Turnaround Tuesday: Bitcoin, Amazon and Microsoft -- Oh My!

3M and Caterpillar Drag the Dow Lower, Verizon and McDonald's Are Gainers

3M and Caterpillar Drag the Dow Lower, Verizon and McDonald's Are Gainers

Jim Cramer Gives Investors Advice on Market Volatility

Jim Cramer Gives Investors Advice on Market Volatility

Jim Cramer Previews Boeing and Mattel's Earnings

Jim Cramer Previews Boeing and Mattel's Earnings