Late Movers: Citigroup CEO Jumps Ship, Intel and IBM Sink After Earnings
After gaining 1.61 percent on Tuesday, Citigroup (NYSE:C) shares edged slightly lower in late afternoon trading. Vikram Pandit stepped down as the company’s chief executive officer just one day after reporting earnings. Michael Corbat, former Europe, Middle East and Africa boss, has been elected to take his place.
Shares of Intel (NASDAQ:INTC) fell more than 3 percent in late afternoon hours. The company announced that third quarter net income fell 14.3 percent to $2.97 billion (58 cents per share), compared to $3.47 billion (65 cents per share) a year earlier. Revenue also declined 5.5 percent to $13.46 billion. “Our third-quarter results reflected a continuing tough economic environment,” said Paul Otellini, Intel president and CEO. “The world of computing is in the midst of a period of breakthrough innovation and creativity.” Shares of Advanced Micro Devices (NYSE:AMD) also traded lower on the results.
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International Business Machines (NYSE:IBM) shares dropped 3.5 percent after reporting financial results for the third quarter. Net income declined to $3.82 billion ($3.33 per share), compared to $3.84 billion ($3.19 per share) a year earlier. Revenue also fell 5.4 percent to $24.75 billion. Last quarter’s profit decrease ends a four-quarter streak of profit increases.
Shares of Apollo Group (NASDAQ:APOL) plunged 8.5 percent after announcing weak quarterly earnings. Net income crashed 60 percent to $75.4 million (66 cents per share), compared to $188.6 million ($1.36 per share) a year earlier. The owner of the largest for-profit college in the United States will also cut about 800 jobs and shut down 115 campuses in order to save costs.