Heavy Hitters: IBM and Intel Miss Revenue Estimates, Tesla Rebounds 10%
Shares of International Business Machines (NYSE:IBM) jumped more than 1 percent in late afternoon hours. Despite missing revenue estimates, the company reported better-than-expected second-quarter earnings. IBM earned $3.91 per share excluding items, compared to $3.51 per share a year earlier. Analysts expected earnings of $3.77 per share.
Intel (NASDAQ:INTC) shares dropped 3 percent in late afternoon trading. The chipmaker reported second-quarter earnings that were inline with estimates, but missed on the top line and cut its annual revenue forecast. “In the second quarter, we delivered on our quarterly outlook and made several key product announcements,” said Intel CEO Brian Krzanich. “In my first two months as CEO, I have listened to a wide variety of views about Intel and our industry from customers, employees, and my leadership team, and I am more confident than ever about our opportunity as a company.”
Shares of American Express (NYSE:AXP) fell 1.4 percent in late afternoon hours. The credit-card company announced better-than-expected earnings for the second quarter, but missed revenue expectations. “We generated record bottom line results this quarter despite an uneven global economy,” said Kenneth Chenault, chairman and chief executive officer. “Cardmember spending grew by 7 percent (8 percent adjusted for foreign currency translations), with broad-based gains throughout the business both here in the U.S. and internationally. We continued to build our cardmember loan portfolio while maintaining credit indicators at historically strong levels.”
Tesla Motors (NASDAQ:TSLA) shares bounced more than 10 percent on Wednesday and continued to drive higher in late afternoon hours. Shares crashed on Tuesday after a downgrade from Goldman Sachs, but received an upgrade from Dougherty on Wednesday. The firm raised its price target to $200 from $90 based on Tesla’s third-generation potential and believes shares could be $300 at the factory’s maximum capacity.
Shares of Apple (NASDAQ:AAPL) held steady on Wednesday, even with more speculation on the company’s next iPhone. The next model might be made from an incredibly strong alloy known as Liquidmetal. According to the Liquidmetal Technologies (LQMT.PK) website, this material “uniquely combines the strength of forging with intricate molding capabilities” with “twice the strength of titanium.” In 2010, Apple signed a “Master Transaction Agreement” with Liquidmetal Technologies, which gave the Cupertino-based company access to all of Liquidmetal’s “intellectual property assets,” including its namesake “bulk metallic glasses” material. Until now, Apple has only utilized Liquidmetal to make the SIM eject tool for the iPhone, notes Adrian Kingsley-Hughes at ZDNet.
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