Afternoon BUZZERS: McDonald’s Disappoints, Apple and Facebook Shares RETREAT
McDonald’s (NYSE:MCD) shares are down 2.74 percent in early afternoon trading after the fast food giant this morning reported financial results for the second quarter. Net income for the company came in at $1.35 billion ($1.32 per share), down from $1.41 billion ($1.35 per share) a year earlier. McDonald’s fell short of the mean analyst estimate of $1.38 per share. “McDonald’s global comparable sales remained solid for the quarter while overall results reflected the slowing global economy, persistent economic headwinds and the investments we’ve made to enhance restaurant operations and provide customers the everyday value they have come to expect from McDonald’s,” said McDonald’s Chief Executive Officer Don Thompson.
Apple (NASDAQ:AAPL) was down nearly 1 percent this afternoon as the broad market experienced a sell-off. The tech giant reports earnings on Tuesday and some analysts are expecting dismal results. With the a new iPhone expected this fall, many suspect that consumers are delaying purchases until then. “People are waiting,” said Andy Hargreaves, an analyst at Pacific Crest Securities in Portland, Oregon. Apple will sell about 25.4 million iPhones, he estimates, compared with 35.1 million in the previous quarter. “It’s going to be bad now, but great later,” according to Bloomberg.
Shares of Halliburton (NYSE:HAL) dropped 1.23 percent this afternoon. Net income for the oil-field services company declined to $737 million (80 cents per share) in the second-quarter, compared to $739 million (80 cents per share) a year earlier. Revenue jumped 21.9 percent to $7.23 billion. “I am pleased with our second quarter results, which set a new revenue record for the total company and all three of our international regions,” commented Dave Lesar, chairman, president and chief executive officer.
Hasbro (NYSE:HAS) shares jumped 3.72 percent this afternoon. The toy-maker reported that net income fell to $43.4 million (33 cents per share) in the second-quarter, compared to $58.1 million (42 cents per share) a year earlier. However, gross margin increased 12.2 percent to 61.6 percent.
Facebook (NASDAQ:FB) shares slipped 0.60 percent this afternoon, despite positive news about the company’s mobile platform. A new study by TBG Digital has found that Facebook’s mobile ad click-through rate is now about 1.1 percent, more than four times Twitter’s 0.266 percent. On Thursday, the company is set to announced its first earnings report as a public company.
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