Radar Movers: IBM and Microsoft Sink After Quarterly Results, Chipotle Jumps 4%
Intuitive Surgical (NASDAQ:ISRG) shares plunged more than 11 percent in late afternoon hours. Due to weak demand, the company cut its sales forecast for this year. Sales also came in weaker than expected for the second quarter, and the company announced it received a notice from the FDA regarding a facilities inspection.
Chipotle Mexican Grill (NYSE:CMG) shares jumped 4.3 percent in late afternoon trading. The company announced that second-quarter earnings came in at $2.82 per share, slightly better than expected. Sales at restaurants opened for at least 13 months also gained 5.5 percent in the quarter. “This month marks Chipotle’s 20th anniversary. What started out as one restaurant serving burritos and tacos, has evolved into a national brand which is changing the way people think about and eat fast food. Our vision has connected with our loyal customers, who visit Chipotle to enjoy great tasting food made from premium ingredients,” said Steve Ells, founder, chairman, and co-chief executive officer.
Apple (NASDAQ:AAPL) shares held relatively steady throughout Thursday. The tech giant is reportedly continuing its foray into TV programming and is developing an ad-skipping technology that would let owners of its Apple TV set-top box and future television devices watch shows without commercials. Since this will naturally make advertisers unhappy, Apple may reimburse the programmers for skipped ads, according to Bloomberg and people familiar with the matter.
Shares of Microsoft (NASDAQ:MSFT) sank more than 6 percent in late afternoon hours. The company reported quarterly earnings of 59 cents per share, well below estimates calling for 75 cents per share. “While our fourth quarter results were impacted by the decline in the PC market, we continue to see strong demand for our enterprise and cloud offerings, resulting in a record unearned revenue balance this quarter. We also saw increasing consumer demand for services like Office 365, Outlook.com, Skype, and Xbox LIVE,” explained Amy Hood, chief financial officer at Microsoft.
Google (NASDAQ:GOOG) shares dropped almost 4 percent in late afternoon trading. The king of search reported weaker-than-expected second-quarter revenue of $14.1 billion. Wall Street expected revenue of about $14.4 billion. Earnings of $9.56 per share also missed estimates. Google has now missed top-line estimates for the past four quarters.
Follow Eric on Twitter (@Mr_Eric_WSCS)