Wall St. Brief: Intel Profit SINKS, Vivus Wins HUGE Victory
Intel (NASDAQ:INTC) had a disappointing second quarter as its net profit fell four percent to $2.83 billion while revenue increased four percent to $13.5 billion. Its flat $0.54 earnings per share exceeded estimates. The company cut its fiscal year sales growth outlook to three percent to five percent from its previous guidance of “high single-digits” reported the Wall Street Journal. Intel attributed a falling demand for PCs from the slowing economy, while analysts also pointed fingers at tablets as a major factor.
Yahoo’s (NASDAQ:YHOO) second quarter earnings per share increased to $0.27 from $0.18, beating expectations, while revenue missed estimates slightly as it was flat at $1.08 billion. New CEO Marissa Mayer was absent from the company’s earnings call, where it announced that it would give not guidance at this time. Yahoo did say there are “problems” with its Microsoft (NASDAQ:MSFT) search partnership where revenue guarantees only have nine months remaining.
The FDA gave the green light to Vivus’ (NASDAQ:VVUS) Qnexa/Qsymia treatment; this represents the second approval by the agency for a new weight-loss drug in under a month. The prescription medicine will be available later during the year.
Credit Suisse (NYSE:CS) announced plans to increase capital by 8.7 billion Swiss francs ($8.9 billion), with a potential to add 6.6 billion more francs. The bank also increased its cost-savings target to 3 billion francs, up from 2 billion francs. It also released its second quarter results early with news that net income increased to 788 million francs from 768 million francs from the previous year.
On Tuesday, VMware (NYSE:VMW) confirmed the appointment of Pat Gelsinger as its new CEO, replacing Paul Maritz, who is new the Chief Strategist at the parent company EMC (NYSE:EMC). Preliminary second quarter earnings were also reported by the company with revenue increasing 22 percent to $1.12 billion. Meanwhile from EMC, it had earnings per share of $0.39, missing estimates by $0.01, while revenue rose 10 percent to $5.31 billion, beating expectations by $20 million.
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