Buzz Pre-Bell: Apple Stays Strong Above $600, Amazon’s Loss Ignored
Shares of Apple (NASDAQ:AAPL) briefly fell below $590 in late trading after announcing weaker-than-expected earnings, but recaptured the $600 level moments later. This morning, Apple is trading up pre-market in the $611 range. While the company’s earnings grew 24 percent to $8.2 billion, or $8.67 per share, from $6.6 billion, or $7.05 per share, in the year-ago quarter, average Wall Street expectations had been for $8.84 per share. Apple did beat revenue predictions marginally, with a 27 percent increase to $36 billion and international sales making up 60 percent of it.
Amazon.com (NASDAQ:AMZN) shares edged slightly higher in pre-market hours. The online retailer reported a net loss of $274 million (60 cents per share) for the third quarter. In comparison, Amazon posted net income of $63 million (14 cents per share) during last year’s third quarter. Poor performance by LivingSocial.com, in which Amazon has a large ownership stake, was partly culpable for the ugly third-quarter losses, as well as massive spending as the company continues to grow existing operations and invest in new business development.
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Shares of Expedia (NASDAQ:EXPE) surged more than 14 percent after reporting earnings, despite reporting that third quarter net income fell 18.2 percent to $171.5 million ($1.20 per share), compared to $209.5 million ($1.22 per share) a year earlier. However, Expedia reported adjusted net income of $1.32 per share. By that measure, the company beat the mean estimate of $1.17 per share. Priceline.com (NASDAQ:PCLN) shares also increased on the news.
Coinstar (NASDAQ:CSTR) shares plunged more than 7 percent in after releasing its latest report. The Redbox DVD owner said that third quarter revenue increased 15 percent to $537.6 million, below estimates of $557.4 million. Chief Executive Officer Paul Davis cited “temporary headwinds” such as the Olympics for the weak financial results.
Investor Insight: Apple Earnings: Profit and Revenue Surge By Double Digits Again.