Tech Sector Posted Solid Weekly Rally With Apple Inc. (AAPL, AMZN, BIDU, EXPE, CRUS)
The tech sector was the biggest gainer in the past week driven by solid earnings from large cap companies including the world’s largest company by Apple Inc. (NASDAQ:AAPL), Amazon.com, Inc. (NASDAQ:AMZN), Expedia Inc (NASDAQ:EXPE) and many more. For the week, the NASDAQ Composite jumped 2.30%, while Financial Select Sector SPDR (ETF)(NYSEARCA:XLF) rose 2.20%.
Following is the quick recap of the top large cap tech companies for the past week…
Apple Inc. (NASDAQ:AAPL) shares soared about 9% on Wednesday after the tech bellwether reported a much stronger than anticipated second quarter earnings late Tuesday boosted by solid sales of iPhones. The company said that net income came at $11.6 billion, or $12.30 per share on revenue of $39.2 billion, well above analysts’ estimates of $$10.07 per share on revenue of $36.96 billion. However, the company a weaker than estimated outlook for the third quarter and expects to earn $8.68 per share on revenue of $34 billion, compared to analysts estimates of $9.95 per share on revenue of $37.40 billion. But, one should note that the company traditionally provides very conservative earnings forecast. For the week, the stock was up 5.25%, its best weekly gain in the past 6-week.
Amazon.com, Inc.(NASDAQ:AMZN) was among the top contributors as the stock soared 15.75% on Friday after the company posted its first quarter earnings that easily topped analysts’ forecast. The company earned $130 million, or 28 cents per share, on revenue of $13.18 billion, topping consensus of 6 cents a share on revenue of $12.91 billion. For the current quarter, the company projects to generate revenue within a range of $11.9 billion to $13.3 billion, which is below the average $12.85 billion estimate.
Operating income in this current quarter is expected to fall from 80% to 229%, year over year, to a range of $40 million to a $260 million loss, compared to analysts forecast of $267.5 million, a 30% decline, or $152 million on a GAAP basis. Operating income in this current quarter is expected to fall from 80% to 229%, year over year, to a range of $40 million to a $260 million loss, compared to analysts forecast of $267.5 million, a 30% decline, or $152 million on a GAAP basis.
Expedia Inc (NASDAQ:EXPE) was another stock which was in action in the last trading session as the stock jumped 23.54% after the company posted a much higher-than-anticipated first quarter adjusted profit and revenue. The company reported net loss of $3.3 million, or 2 cents a share, reversing a year ago profit of $52 million, or 37 cents a share. On an adjusted basis, the company would have earned 26 cents a share, ahead of analysts’ estimates by 9 cents. Quarterly revenue grew 12% to $816.5 million, ahead of $790.9 million expected by analysts.
Baidu.com, Inc. (ADR)(NASDAQ:BIDU) had various ups and downs during the week , but the stock ended lower 7.25% for the week. Late Tuesday, the company reported net profit of $299.0 million, up 75.90% year-over-year. On per share basis, the company earned 87 cents a share, ahead of analysts’ estimates of 84 cents a share. Revenue during the quarter soared 75% year-over-year to $677.1 million, in-line with analysts’ estimates of $677.51 million. The company projects to generate revenue of $847.2 million-$867.0 million for the second quarter of 2012, representing a 56.2% to 59.9% year-over-year increase, missing midpoint of the projected $860.2 million.
Cirrus Logic, Inc. (NASDAQ:CRUS) had a massive rally with the stock gaining over 32% last week on strong earnings. The company reported profit of $50.8 million, or 75 cents a share, compared to a year ago profit of $130.4 million, or $1.80 a share. On an adjusted basis, the company would have earned 36 cents a share, up from 22 cents a share a year ago. Revenue during the quarter grew to $110.6 million. Analysts were estimating the company to report 34 cents a share. For its fiscal first quarter, the company projects to generate revenue in the range of $96 million and $106 million. Analysts are expecting $106.6 million.