Verizon Communications (NYSE:VZ): The major telecomm player reported second quarter earnings this morning, swinging to a profit of $3.6 billion (57 cents per diluted share) in the quarter. The telecom services company had a net loss of $198 million or a loss of 42 cents per share in the year earlier quarter. Revenue rose 2.7% to $27.5 billion from the year earlier quarter. Verizon beat the mean analyst estimate of 55 cents per share. Analysts were expecting revenue of $27.43 billion. “In terms of earnings growth and the acceleration of revenue growth, this has been one of Verizon’s best quarters since the 2008 economic downturn,” said Chairman and CEO Ivan Seidenberg. “We expanded sequential margins in both our wireline and wireless businesses, and in the second half of the year we expect Verizon to build on this strong, positive momentum to continue to drive profitable, sustainable growth.” Seidenberg added: “We expect Verizon Wireless to gain share in the retail postpaid market and widen its network-quality lead throughout 2011. We also continue to see strong customer demand for FiOS Internet and TV, and for cloud and other strategic services. At the same time, we remain focused on our cost structure, as we deliver improvements in wireline margins quarter after quarter.” VZ stock is down -1.52% premarket.
Honeywell International, Inc. (NYSE:HON): The tech and manufacturing company recently put together its second quarter fiscal results. Net income for the company rose to $810 million ($1.02 per share) vs. $468 million (73 cents per share) in the same quarter a year earlier. This marks a rise of 73.1% from the year earlier quarter. Revenue rose 15% to $9.09 billion from the year earlier. HON beat the mean analyst estimate of 98 cents per share. It fell short of the average revenue estimate of $9.27 billion.
“Honeywell’s strong second quarter performance reflects terrific execution and continued momentum in our key end markets, contributing to our upside performance in the first half of 2011,” said Honeywell Chairman and CEO Dave Cote. “The sales growth we’re seeing reflects our extensive innovation pipeline and increasing presence in high growth regions. We had particularly robust growth in the Aerospace commercial aftermarket, and our short-cycle businesses such as Advanced Materials, ACS Products, and Turbo Technologies continued to perform well.”
Caterpillar (NYSE:CAT): The construction and mining equipment reporting its second quarter results recently, with net income up to $1.285 billion ($1.72 per share), excluding $204 million of expense related to the acquisition of Bucyrus, vs. $707 million ($1.09 per share) a year earlier. Income including acquisition charges was $1.015 billion ($1.52 per share). Revenue also rose 36.7% to $14.23 billion from the year earlier quarter. CAT fell short of the mean analyst estimate of $1.77 per share. It beat the average revenue estimate of $13.52 billion. “Customer demand around the world continues to improve, and our sales and revenues reached an alltime record in the second quarter. Our employees, dealers and suppliers should feel great about the way they’re responding to the increase in customer demand,” said Chairman and Chief Executive Officer Doug Oberhelman. The stock is down -6.10% this morning.
General Electric (NYSE:GE): The advanced technology, services and finance company reported second quarter earnings with net income rising to $3.84 billion (34 cents per share) vs. $3.11 billion (28 cents per share) in the same quarter a year earlier. This marks a rise of 23.4% from the year earlier quarter. Revenue dropped 4.9% to $35.6 billion from the year earlier. The company beat the mean analyst estimate of 32 cents per share. It beat the average revenue estimate of $34.72 billion. GE stock is up 1.20%.
“GE Capital’s portfolio transformation is ahead of schedule. Consumer and Commercial Lending and Leasing (CLL) led with earnings growth of 57% and more than 100%, respectively. We continue to see strong demand for credit with CLL new volume originations at $10.8 billion for the quarter, up 33% from prior year.” “With our fifth-consecutive quarter of double-digit earnings growth, we continue to execute in a volatile environment,” GE Chairman and CEO Jeff Immelt said. “We posted solid overall operating earnings growth of 18%, with strong contributions from GE Capital, Healthcare, Transportation, Aviation, and Oil & Gas. GE’s backlog grew to a record high of $189 billion. Total infrastructure orders were up 24%, reflecting robust strength in equipment orders, up 33%, and service orders up 16%.”