Teradyne net income drops 66%
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Teradyne Inc.'s second-quarter net income dropped 66 percent to $27.7 million, or 14 cents a share, from $82.4 million, or 40 cents a share, a year earlier.
The Boston-based electronics testing equipment company's income from continuing operations fell to $27.2 million from $84.2 million a year earlier.
Revenue fell 25 percent to $288.7 million from $386.8 million in the year-ago period.
Analysts expected per-share earnings of 11 cents on revenue of $291 million.
Teradyne said it expects third-quarter per-share earnings from continuing operations of between 15 and 19 cents on sales of $300 million to $320 million. (Dow Jones)
IBM earnings up on software, services
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Second-quarter earnings at International Business Machines Corp. rose 12 percent and beat Wall Street forecasts, largely on the strength of IBM's software division and improvement in its services unit.
From April through June, the Armonk, N.Y.-based technology bellwether earned $2.26 billion, $1.55 per share, on revenue of $23.8 billion.
In the comparable period last year, IBM earned $2.02 billion, $1.30 per share, on revenue of $21.9 billion.
This year's quarterly numbers were boosted $81 million, or 5 cents per share, from the sale of IBM's printing division to Ricoh Co. Without that gain, IBM would have earned $1.50 per share, beating the estimate of $1.47 that was expected by analysts surveyed by Thomson Financial. Analysts were expecting revenue of $23.1 billion. (AP)
EBay profit easily beats predictions
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EBay Inc. reported that second-quarter profit surged 50 percent, easily beating Wall Street expectations thanks to strong sales on online auctions, the automobile classified section, and e-commerce sites such as shopping.com.
The San Jose, Calif., company earned $375.8 million, or 27 cents per share, compared with $249.9 million, or 17 cents per share, in the second quarter of 2006.
Revenue for the period ended June 30 was $1.83 billion, up 30 percent from $1.41 billion in the year-ago quarter.
Not including $79.6 million in stock-based compensation expenses and other one-time charges, eBay earned $471.1 million, or 34 cents per share, up 34 percent from a year ago.
On that basis, which does not comply with generally accepted accounting principles, analysts polled by Thomson Financial expected eBay to earn $447.18 million, or 32 cents per share, on revenue of $1.78 billion. (AP)
Lagging sales pull Pfizer profit down
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Pfizer Inc. reaffirmed its full-year guidance despite a 48 percent drop in second-quarter profit because of lagging sales of cholesterol drug Lipitor and generic competition for Zoloft and Norvasc.
A disappointing 13 percent drop in Lipitor sales marked a sharp turnaround from growth of 8 percent in the first quarter. Fluctuating wholesale inventory levels were to blame for both the first-quarter sales rise and about half of the second-quarter sales drop, the company said. Fluctuating inventory levels are not expected to have an impact on Lipitor for the remainder of the year.
Net income plunged to $1.27 billion, or 18 cents per share, from $2.42 billion, or 33 cents per share, a year ago. Excluding items, adjusted profit fell 20 percent to $2.94 billion, or 42 cents per share, from $3.66 billion, or 50 cents per share, a year ago.
Revenue dropped 6 percent to $11.08 billion from $11.74 billion in the prior-year period.
The results missed analysts' expectations for adjusted profit of 50 cents per share on revenue of $11.4 billion, according to a survey by Thomson Financial. (AP)
Sovereign Bancorp swings to profit
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Sovereign Bancorp Inc., a mid-Atlantic regional bank, said it posted a second-quarter profit after reporting a loss in the same period a year ago.
Sovereign reported net income of $147.5 million, or 29 cents per share, compared with a loss of $59.1 million, or 15 cents per share, during the same quarter a year ago.
Net income in the second quarter included a charge of $20.1 million, or 4 cents per share, related to a previously disclosed cost-cutting initiative that included a 7 percent reduction in staffing. Various one-time charges in the second quarter of 2006 related to restructuring, impairments, acquisitions, and integration costs amounted to $218.5 million, or 49 cents per share.
Analysts forecast earnings of 32 cents per share. Such estimates usually exclude one-time charges.
Sovereign reported net interest income of $453.4 million in the second quarter, compared with $438.8 million during the same quarter a year ago. Net interest income is the difference between the amount it costs a bank to borrow money and the amount it receives lending money to customers.
Noninterest income, or income collected from fees, increased to $190.3 million in the second quarter, up from $142 million during the comparable period a year ago. (AP)
Cubicin sales pull Cubist to profit
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Biotechnology company Cubist Pharmaceuticals Inc. said it swung to a second-quarter profit on higher sales of its skin infection treatment Cubicin.
The Lexington company earned $14.5 million, or 24 cents per share, compared with a loss of $5.1 million, or 9 cents per share, during the same period a year prior.
Revenue rose 46 percent to $69.8 million from $47.8 million.
Analysts expected profit of 16 cents per share on revenue of $65.1 million.
Cubicin sales made up the great majority of the company's revenue, with sales rising 52 percent to $69.5 million from $45.7 million. (AP) 