With the three biggies – Intel, IBM and Yahoo recently revealed their quarter results – commentaries begins, different analysts putting up their point of view on who had gain and who had lost. Intel had reported quarterly revenue of $12.9 billion, operating income of $3.8 billion, net income of $2.7 billion and EPS of $0.53. The company generated approximately $3.0 billion in cash from operations, paid dividends of $1.0 billion and used $1.5 billion to repurchase stock.
Yahoo had reported results for the first quarter ended March 31, 2012. Revenue excluding traffic acquisition costs was $1,077 million for the first quarter of 2012, a 1 percent increase from the first quarter of 2011. Income from operations decreased 11 percent to $169 million in the first quarter of 2012, compared to $190 million in the first quarter of 2011. GAAP revenue was $1,221 million for the first quarter of 2012, a 1 percent increase from the first quarter of 2011. Net earnings per diluted share increased 38 percent to $0.23 in the first quarter of 2012, compared to $0.17 in the first quarter of 2011.
IBM had announced its first-quarter 2012 results with diluted earnings of $2.61 per share, compared with diluted earnings of $2.31 per share in the first quarter of 2011, an increase of 13 percent. Operating (non-GAAP) diluted earnings were $2.78 per share, compared with operating diluted earnings of $2.41 per share in the first quarter of 2011, an increase of 15 percent. First-quarter net income was $3.1 billion compared with $2.9 billion in the first quarter of 2011, an increase of 7 percent. Operating (non-GAAP) net income was $3.3 billion compared with $3.0 billion in the first quarter of 2011, an increase of 9 percent. Total revenues for the first quarter of 2012 of $24.7 billion were flat (up 1 percent, adjusting for currency) from the first quarter of 2011.
ALEX GAUNA, ANALYST, JMP SECURITIES: “It looks like a solid result and a good guide.”I would have liked to see a stronger enterprise computing number. We maybe got a little ahead of ourselves with expectations. The fundamentals are strong in cloud. “The quarter was a beat, and I don’t think that the tablet threat is growing. You could argue it’s getting less significant. The tablet seems to be going more and more into e-readers, 7-inch screens”, which are less of a threat to larger PCs. “I’m still expecting a strong second half of the year.”
VIJAY RAKESH, ANALYST, STERNE AGEE: “Expectations were a little high and the stock had a good run going into earnings. The results and guidance are in line but there were slightly higher expectations. “Mobile is still small and probably not material at this point. Their bread and butter continues to be PCs. We think demand has mostly come from restocking in the channel and supply chain, rather than market demand. We may get more color on the call about that. Advanced Micro Devices, or “AMD is actually growing faster than Intel. They have been taking share on the notebook side.”
BRIAN MARSHALL, ANALYST, ISI GROUP: “IBM has been on a great tear here. I think the stock was priced for perfection. There’s a little bit of profit taking here. “Revenue was a little light relative to expectations. They did a good job on the bottom line. The guidance was good. “At the end of the day the numbers looked fine to me.”What they’re doing is maximizing their operating margins by making sure they’re not taking on revenue opportunities that aren’t going to give them high margins. At the end of the day there’s a lot of pruning going on here. “The important part is they continue to expand earnings. EPS looked pretty good. “The black eye is systems and technology. Their hardware business was down 7 percent year over year. The area that continues to shine is software. That was up 6 percent year over year.”
CLAYTON MORAN, ANALYST, BENCHMARK CO: “Very modestly ahead of expectations, disappointing display results (down 4 percent), that is obviously their most important business. “Yahoo continues to struggle in the Internet advertising space. “Investors are anxious to hear how (CEO Scott) Thompson can turn this around and are largely skeptical he can do it. It’s going to be hard for him to articulate a convincing strategy but investors are all ears now.”
COLIN GILLIS, ANALYST, BGC PARTNERS: “Here is the one piece that is always sad about Yahoo. Their income from operations was about $169 million and their earning and equity interest was about $172 million. “Their minority stake in their investments is generating more profit than their core business.”So far Scott has done the right things. He is bringing in some of his own people, he’s taking costs out of the system. His first quarter out of the gate, he controls what he can control, which is earnings.”