Wall Street Top Stories: Wendy’s Earnings, Facebook Roadshow, GE’s Purchase
Wendy’s Co. (NYSE:WEN) reported a first-quarter profit of $12.4 million ($0.03 per share) as compared to a $1.41 million loss (less than a penny per share) from the previous year. This came from an an investment gain but Wendy’s fast-food chain’s revenue growth was slower than than expected and its higher costs affected margins.
Facebook kicked off its roadshow on Monday with company founder and CEO Mark Zuckerberg dressed in a black hoodie and sneakers.The event started at the Sheraton Hotel in Manhattan around noon with more 500 investors and analysts hearing Facebook’s pitch. According to The Wall Street Journal, a 30-minute video about Facebook, which had been distributed prior to the event, kicked off the luncheon, followed by a delayed presentation by Zuckerberg. Questions to executives then lasted about 20 minutes.
General Electric Co.(NYSE:GE) will buy a 15% stake in China XD Electric Group in an effort to build and upgrade its electrical infrastructure globally. XD Electric’s shares rose almost 10% in Shanghai on Tuesday. In a joint statement, GE didn’t acknowledge the cost of its stake in the Chinese company but Reuters put the number at $535 million. The agreement also has a GE representative to be appointed to XD Electric’s board.
Even though Apple Inc.’s (NASDAQ:AAPL) CEO Tim Cook recently minimized fears about declining iPhone subsidies, telecom operators have protected themselves and took steps to curtail hits from the subsidies. For U.S. carriers, they are making subtle moves by increasing data plan rates and creating upgrade fees, while Telefonica (NYSE:TEF) and Vodafone (NASDAQ:VOD) have ceased subsidies for their new customers in economically-challenged Spain.
This week, Bank of America (NYSE:BAC) will begin getting in touch with 200,000 distressed homeowners to offer them reduced mortgage repayments. This comes as part of a $25 billion settlement between the large lenders and government agencies. The bank has a $11 billion commitment but the cost could be higher if enough borrowers respond and don’t throw out the bank’s letter as junk mail.
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