Early BUZZERS: GE Pops 1%, Chipotle Gets BURNED
General Electric (NYSE:GE) shares gained 1 percent this morning. The company reported that net income for the second-quarter increased 6.3 percent to $4 billion (34 cents per share), compared to $3.76 billion (35 cents per share) a year earlier. “Today’s results demonstrate that we are executing on our growth strategy in the midst of a still volatile global economy,” said GE Chairman and CEO Jeff Immelt. “GE Capital’s strong operating performance and capital position allowed it to return a $3 billion dividend to the parent, and our Industrial segments delivered another quarter of double-digit organic revenue growth.”
Shares of Microsoft (NASDAQ:MSFT) were down about 1 percent in morning trading after the company reported a net loss of $492 million (6 cents per share), compared to a net gain of $5.87 billion (69 cents per share) a year earlier. It was the first net loss the Windows-maker since going public in 1986. Excluding the massive write down for aQuantive, the company earned 67 cents per share, topping analyst estimates of 62 cents per share.
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Google (NASDAQ:GOOG) shares popped 2.75 percent this morning. The search giant reported that second-quarter earnings came in at $2.79 billion ($8.42 per share). Excluding items, earnings were $10.12 per share, beating analyst estimates of $10.04 per share. “Google standalone had a strong quarter with 21 percent year-on-year revenue growth, and we launched a bunch of exciting new products at I/O – in particular the Nexus seven tablet, which has received rave reviews,” said Larry Page, CEO of Google. “This quarter is also special because Motorola is now part of the Google family, and we’re excited about the potential to build great devices for users.”
Shares of Chipotle Mexican Grill (NYSE:CMG) plummeted nearly 23 percent in morning trading. The company reported that net income jumped 61.2 percent to $2.56 per share, beating the mean analyst estimate of $2.30 per share. However, revenue of $690.9 million fell short of the $707.1 million average estimate. Furthermore, sales at restaurants open at least one year increased 8 percent, below expectations of 10.1 percent. Due to the results, Chipotle was removed from Goldman Sachs’ (NYSE:GS) Conviction Buy List and Deutsche Bank (NYSE:DB) downgraded shares to Hold from Buy.
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