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Tag: Dividends

  • Stocks making the biggest moves before the bell: General Motors, 3M, Spotify, Verizon and more

    Stocks making the biggest moves before the bell: General Motors, 3M, Spotify, Verizon and more

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    Maplewood, Minnesota, 3M company global headquarters. 

    Michael Siluk | Universal Images Group | Getty Images

    Check out the companies making headlines in premarket trading.

    General Motors — Shares of General Motors rose more than 1% after the automaker raised its full-year guidance and reported second-quarter results that rose on a year-over-year basis.

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    3M – Shares of the chemical manufacturer rose about 2% in premarket trading following the company’s latest earnings report. 3M posted $7.99 billion in revenue, beating analysts’ estimates of $7.87 billion, according to Refinitiv. The company also raised its full-year earnings guidance and reaffirmed its revenue guidance.

    Xerox — The workplace technology provider advanced 3.6% after beating earnings expectations for the second quarter, posting 44 cents per share excluding items against a 32-cent forecast from analysts polled by FactSet. Quarterly revenue came in line with expectations at $1.75 billion. Xerox also said to expect free cash flow and the adjusted operating margin to be better than previously anticipated for the full year.

    General Electric — Shares of the industrial giant jumped more than 4% in premarket trading after the company posted stronger-than-expected earnings for the second quarter. GE also boosted its full-year profit guidance on the back of strong demand from aerospace and record orders in its renewable energy business.

    Danaher — Shares of the conglomerate slid 4.6%. Danaher said non-GAAP core revenue in the base business will be down in the current quarter compared with the same quarter a year ago and would be up less than previously expected for the full year. However, the company gave a strong quarterly report, posting second quarter earnings per share excluding items at $2.05 and revenue at $7.16 billion, while analysts polled by FactSet anticipated $2.01 per share on $7.12 billion in revenue.

    Spotify — The music streaming platform dropped 6.1% after presenting a weak quarterly report and guidance. Spotify reported revenue of €3.18 billion, below a Refinitiv forecast of €3.21 billion. Full-year revenue guidance was also worse than analysts expected. The report follows Spotify’s announcement that it will raise prices for premium subscription plans.

    Lilium — The electric helicopter stock added 5.6% after management released a letter to shareholders. In the letter, management said adjusted cash spend for the first half of 2023 was within budget and the company was successful in an audit from the European Union Aviation Safety Agency.

    Alaska Air — Shares of the airline fell more than 4% even after Alaska beat estimates on the top and bottom lines for the second quarter. Alaska reported $3 in adjusted earnings per share on $2.84 billion in revenue. Analysts surveyed by Refinitiv were expecting $2.70 in earnings per share on $2.77 billion in revenue. The airline’s full-year earnings guidance of $5.50 to $7.50 per share was roughly in-line with the average analyst estimates of $6.65, according to FactSet.

    RTX — Shares of the company formerly known as Raytheon slipped 3% despite a strong quarterly report. RTX ported $1.29 in earnings per share, excluding items, on $18.32 billion in revenue. Analysts polled by Refinitiv forecasted $1.18 per share and $17.68 billion. The company also raised its full-year expectations for both lines.

    Verizon — The telecommunications giant traded 2.6% higher after reaffirming its full-year guidance. That came despite a mixed second quarter, with Verizon posting $1.21 in earnings per share, excluding items, on $32.6 billion in revenue. Analysts polled by Refinitiv estimated $1.17 earnings per share and revenue of $33.24 billion.

    Walmart — Walmart rose more than 1% after Piper Sandler upgraded the big-box retailer Monday to overweight from neutral, and hiked its price target. Analyst Edward Yruma said Walmart could take greater market share in the grocery business as inflation eases.

    — CNBC’s Samantha Subin, Yun Li, Jesse Pound, Sarah Min and Tanaya Macheel contributed reporting

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  • These 5 stocks are on Goldman’s ‘conviction buy’ list — and it gives one more than 50% upside

    These 5 stocks are on Goldman’s ‘conviction buy’ list — and it gives one more than 50% upside

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  • Regional bank yields have fallen but plenty are still paying more than 4%

    Regional bank yields have fallen but plenty are still paying more than 4%

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  • Are AT&T and Verizon’s Dividends Safe? What the Math Says.

    Are AT&T and Verizon’s Dividends Safe? What the Math Says.

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    Are AT&T and Verizon’s Dividends Safe? What the Math Says.

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  • Wells Fargo follows a solid quarter, promising investors something many of them count on

    Wells Fargo follows a solid quarter, promising investors something many of them count on

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    Charlie Scharf, CEO, Wells Fargo, speaks during the Milken Institute Global Conference in Beverly Hills, California on May 2, 2023. speaks during the Milken Institute Global Conference in Beverly Hills, California on May 2, 2023. 

    Patrick T. Fallon | Afp | Getty Images

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  • How to Turn Tesla Into a Dividend-Paying Stock

    How to Turn Tesla Into a Dividend-Paying Stock

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    Being an income investor usually means forgoing exciting stocks like


    Tesla


    and


    Nvidia


    for a regular payout. But that doesn’t have to be the case, thanks to an options play known as a “covered call.”

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  • Earnings season is upon us. What to look out for when major banks report Friday

    Earnings season is upon us. What to look out for when major banks report Friday

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    A combination file photo shows Wells Fargo, Citibank, Morgan Stanley, JPMorgan Chase, Bank of America and Goldman Sachs.

    Reuters

    Second-quarter earnings season unofficially kicks off Friday, with the first of the big banks getting on the board early. The results will be released amid increasing uncertainty in the U.S. economy.

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  • JPMorgan, Goldman, Citi and Morgan Stanley boost dividends after Fed stress tests

    JPMorgan, Goldman, Citi and Morgan Stanley boost dividends after Fed stress tests

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    Major U.S. banks including Morgan Stanley and JPMorgan Chase & Co. announced dividend increases late Friday, in the wake of the results of the Federal Reserve’s latest bank stress tests earlier this week.

    JPMorgan
    JPM,
    +1.40%
    said it plans to raise the bank’s dividend to $1.05 a share, up from $1 a share, for the third quarter, subject to board approval.

    The stress tests “show that banks are resilient — even while withstanding severe shocks — and continue to serve as a pillar of strength to the financial system and broader economy,” JPMorgan Chief Executive Jamie Dimon said in a statement.

    “We continue to maintain a fortress balance sheet with strong capital levels and robust liquidity,” Dimon added.

    Morgan Stanley
    MS,
    +0.19%
    said it will increase its quarterly dividend to 85 cents a share from the current 77.5 cents a share, beginning with its third-quarter dividend. The bank also said that its board reauthorized a multiyear share buyback totaling as much as $20 billion, without an expiration date, beginning in the third quarter.

    Don’t miss: Fed stress tests see large banks able to handle recession and slide in commercial-real-estate prices

    See also: Wall Street upbeat on banks after ‘mostly positive’ Fed stress tests results

    “The results of the Federal Reserve’s stress test demonstrate the durability of our transformed business model. We remain committed to returning capital to our shareholders and are raising our dividend by 7.5 cents,” Chief Executive James P. Gorman said in a statement.

    Wells Fargo
    WFC,
    +0.54%    ,
    for its part, said it will increase its dividend to 35 cents a share, up from 30 cents a share, subject to board approval. It said it has the capacity to undertake a share buyback, “which will be routinely assessed as part of the company’s internal capital adequacy framework that considers current market conditions, potential changes to regulatory capital requirements, and other risk factors,” without elaborating further.

    Goldman Sachs Group Inc.
    GS,
    -0.17%
    said it would raise its dividend, to $2.75 a share from $2.50 a share, starting July 1.

    Market Pulse: Goldman Sachs reportedly looking to exit Apple partnership

    Citigroup Inc. C said its board had approved an increase in its quarterly dividend to 53 cents a share, from 51 cents, also for the third quarter.

    Citi Chief Executive Jane Fraser said that, while the bank “would have clearly preferred not to see an increase in our stress capital buffer, these results still demonstrate Citi’s financial resilience through all economic environments, including the severely adverse scenario envisioned in the Federal Reserve’s stress test.”

    Citi’s “robust capital and liquidity position, as well as the diversification of our funding and our business model, allow Citi to continue to be a source of strength for our clients and navigate challenging macro environments securely,” Fraser said.

    The bank bought back $1 billon in shares in the second quarter and will continue to evaluate its capital actions, the chief executive said. “We are completely committed to simplifying Citi, improving returns and delivering value to our shareholders.”

    Shares of Morgan Stanley and Wells Fargo rose 1.5% and 0.1%, respectively, in the after-hours session after ending the regular trading day up a respective 0.2% and 0.5%. JPMorgan shares edged up 0.2% in the extended session after closing 1.4% higher on Friday. Citigroup shares were up 0.2%, while Goldman’s were largely unchanged.

    Bill Peters contributed.

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  • Banks Boost Dividends After Passing Stress Test. Their Stocks Are on the Rise.

    Banks Boost Dividends After Passing Stress Test. Their Stocks Are on the Rise.

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    Banks Boost Dividends After Passing Stress Test. Their Stocks Are on the Rise.

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  • Nike beats sales expectations, misses on earnings as margins drop

    Nike beats sales expectations, misses on earnings as margins drop

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    A customer enters a Nike store along the Magnificent Mile shopping district on December 21, 2022 in Chicago, Illinois. 

    Scott Olson | Getty Images

    Nike reported mixed fiscal fourth-quarter earnings on Thursday, as lower margins weighed on profits.

    Here’s how the sneaker giant performed during the quarter compared with what Wall Street was anticipating, based on a survey of analysts by Refinitiv:

    • Earnings per share: 66 cents vs. 67 cents expected
    • Revenue: $12.83 billion vs. $12.59 billion expected

    The company’s reported net income for the three-month period that ended May 31 was $1.03 billion, or 66 cents per share, compared with $1.44 billion, or 90 cents a share, a year earlier. 

    Sales rose to $12.83 billion, up about 5% from $12.23 billion a year earlier.

    Investors have been eager to see if Nike managed to improve its bloated inventory levels, which have weighed on its margins. 

    Nike’s margins fell again this quarter, this time by 1.4 percentage points to 43.6%. The company attributed the drop to higher product input costs, elevated freight and logistics costs, an uptick in promotions and unfavorable currency exchange rates.

    Other retailers that reported earnings recently noted freight and logistics costs had gone done for them and proved to be a boon for their margins.

    Inventories came in at $8.5 billion, flat compared with the prior-year period.

    In March, executives said on a call with analysts they were “increasingly confident” the company would be able to exit the fiscal year with healthy inventory levels. They noted sales momentum could lead to “even leaner inventory” than anticipated. 

    Nike has been relying on its wholesale partners to reduce inventory levels. The push boosted its wholesale revenue over the past few quarters, but didn’t help its margins much.

    The company said in March that it expects revenue from that segment to moderate moving forward. Still, Nike recently restored some of the wholesale relationships that it cut when it first began focusing on its direct-to-consumer strategy in 2020.

    Both DSW and Macy’s will start selling a range of Nike merchandise again in October, the retailers both announced in June. 

    Macy’s hasn’t received a shipment from Nike since December 2021, but will now resume selling its apparel, including plus size women’s, big and tall men’s, kid’s, bags and other gear, the department store told analysts during an earnings call. Nike’s more premium offerings appear to be off the table for sale at Macy’s.

    The decision to bring Macy’s and DSW back under the Nike fold has left some investors wondering if the company is moving away from its direct-to-consumer strategy. 

    Investors have also been curious to see how sales have rebounded in China following Covid lockdowns. During Nike’s holiday quarter, China sales came in below estimates. The country overall has since seen an uneven path of economic recovery.

    In April, retail sales in China rose 18.4% but came in lower than economists’ forecast of 21%.

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  • Marvell shares rocket 32% on earnings beat and ‘tremendous’ business potential for A.I.

    Marvell shares rocket 32% on earnings beat and ‘tremendous’ business potential for A.I.

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    Matt Murphy, CEO, Marvell Technology

    Scott Mlyn | CNBC

    Shares of Marvell Technology continued a significant overnight rally Friday, surging about 32% off the back of quarterly earnings results that beat on the top and bottom lines.

    On Thursday, the chipmaker posted 31 cents in adjusted earnings per share for the first quarter, more than the Refinitiv consensus estimate of 29 cents per share. Revenue came in at $1.32 billion for the period, more than the $1.3 billion analyst consensus.

    Marvell shares are now trading at levels not seen since April 2022.

    On an analyst conference call, Marvell CEO Matthew Murphy said the company had begun to reassess how it looked at the “tremendous” business potential of AI.

    “In the past, we considered AI to be one of many applications within cloud, but its importance and therefore the opportunity has increased dramatically,” Murphy said.

    Citi analysts said in a note to investors that the company has a major opportunity to grow its AI-driven revenue. Citi upped its price target from $58 to $61 and maintained its buy rating.

    “In FY2023, MRVL estimated its AI revenue to be ~ $200 million, representing a strong uptick from FY22. The company expects AI sales to reach ~$400M+ in FY24 before doubling in FY25,” the note from Citi’s Atif Malik said.

    Many semiconductor firms experienced a lift from Nvidia’s Wednesday blowout earnings report. Nvidia’s market capitalization now sits close to $1 trillion.

    — CNBC’s Michael Bloom and Chris Hayes contributed to this report.

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  • Oil giant Saudi Aramco posts 19% drop in first-quarter profit

    Oil giant Saudi Aramco posts 19% drop in first-quarter profit

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    DUBAI, United Arab Emirates — State oil giant Saudi Aramco on Tuesday reported a 19% drop in its first-quarter earnings, recording net income of $31.9 billion down from $39.5 billion the previous year amid falling oil prices.

    Analysts expected to see a dip in net profit in its most recent quarter compared with the previous year, as inflation and rising interest rates pressure global demand and stoke fears of a recession. Still, Aramco’s net income beat expectations of $30.5 billion, which was forecast by analysts polled by Reuters.

    The company’s net profit was up 3.75% from the fourth quarter. It said that the weaker earnings result was offset by lower taxes and higher finance and other income. Aramco’s shares rose 3.2% in early trading in Riyadh on Tuesday.

    Aramco’s first-quarter dividend, which was increased in the fourth quarter to $19.5 billion, will be paid in the second quarter, the company said. It reported its quarterly cash flow from operating activities at $39.6 billion and free cash flow at $30.9 billion, both of which were slightly up on the previous year.

    Aramco, which is the world’s largest oil exporter, also revealed Tuesday that it will begin paying a performance-linked dividend on top of that $19.5 billion, and will target between 50% and 70% of its free cash flow figure. That dividend will be paid quarterly and at the sole discretion of Aramco’s board, depending on how the company performs, it said.

    An offshore drilling platform stands in shallow waters at the Manifa offshore oilfield, operated by Saudi Aramco, in Manifa, Saudi Arabia, on Wednesday, Oct. 3, 2018.

    Simon Dawson | Bloomberg | Getty Images

    Aramco CEO Amin Nasser emphasized the value of its downstream strategy, which has seen it invest heavily in petrochemical and other operations.

    “We are leveraging cutting-edge technologies to increase liquids-to-chemicals capacity and meet anticipated demand for petrochemical products,” Nasser said in the earnings release.

    Nasser stressed the continued importance of hydrocarbons for the world’s energy needs, adding that “we believe oil and gas will remain critical components of the global energy mix for the foreseeable future.”

    He said the company is “moving forward” with its capacity expansion, and that its “long-term outlook remains unchanged.”

    Aramco posted a record net income of $161.1 billion for 2022 in March, up by 46.5% over the year.

    Falling oil prices

    Saudi Arabia’s Basic Industries Corp., which is one of the world’s largest petrochemical companies and is 70% owned by Aramco, this month reported that its first-quarter net profit plunge 90% and warned that margins would remain under pressure amid new capacities, rising interest rates and uncertainty over global growth.

    Oil and gas prices surged at the start of 2022, with Western sanctions on Russia following its full-scale invasion of Ukraine steadily tightening access to crude supplies. But this year, so far, is telling a different story for prices.

    The price of international oil benchmark Brent crude is down 9% year to date and has fallen more than 17% year on year. That decline stems from a combination of economic concerns.

    Earlier this month, the U.S. Federal Reserve hiked interest rates by a quarter of a percentage point, raising investors’ concerns that slower economic growth could dent energy demand.

    “Pressure from anti-inflationary action undertaken by both the U.S. Fed and the ECB [European Central Bank], have resulted in lackluster demand growth for most of the OECD [Organization for Economic Cooperation and Development], with recession risks lying ahead,” Citi’s global head of commodities research, Ed Morse, wrote in a note this week.

    — CNBC’s Lee Ying Shan contributed to this report.

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  • Berkshire Hathaway’s operating earnings increase 12% in the first quarter, cash hoard tops $130 billion

    Berkshire Hathaway’s operating earnings increase 12% in the first quarter, cash hoard tops $130 billion

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    Earnings for Warren Buffett’s Berkshire Hathaway jumped in the first quarter, thanks in part to a rebound in the conglomerate’s insurance business.

    Operating earnings, which encompass profits from the conglomerate’s fully-owned businesses, totaled $8.065 billion in the first quarter. That’s up 12.6% from $7.16 billion a year prior.

    Profit from insurance underwriting came in at $911 million, up sharply from $167 million a year prior. Insurance investment income also jumped 68% to $1.969 billion from $1.170 billion.

    Geico saw a big turnaround in the quarter, returning to a big underwriting profit of $703 million. The auto insurer suffered a $1.9 billion pretax underwriting loss last year as it lost market share to competitor Progressive. Ajit Jain, Berkshire’s vice chairman of insurance operations, previously said the biggest culprit for Geico’s underperformance was telematics.

    The company’s railroad business, BNSF, along with its energy company saw year-over-year earnings declines. Operations classified under “other controlled businesses” and “non-controlled businesses” had slight increases from the year-earlier period.

    Warren Buffett at Berkshire Hathaway’s annual meeting in Los Angeles, California. May 1, 2021.

    Gerard Miller | CNBC

    Berkshire’s cash hoard swelled to $130.616 billion from $128 billion in the fourth quarter of 2022. Berkshire also repurchased $4.4 billion worth of stock — the most since the first quarter of 2021 — up from $2.8 billion at the end of last year.

    Berkshire’s net earnings, which includes short-term investment gains, increased to $35.5 billion in the quarter from $5.6 billion in the same period a year ago, reflecting a first quarter comeback in Warren Buffett’s equity investments, such as Apple. Though Buffett cautions investors to not pay attention to quarterly fluctuations in unrealized gains on investments.

    The company’s latest quarterly results come ahead of the conglomerate’s annual shareholders meeting, an event known as “Woodstock for Capitalists.”

    Berkshire Class A shares are up 4.9% this year through Friday’s close, lagging the S&P 500’s 7.7% advance. However, the stock is less than 3% below an all-time high.

    — CNBC’s Yun Li contributed reporting.

    Follow CNBC’s livestream of Berkshire Hathaway’s 2023 annual meeting starting live at 9:45 a.m. ET Saturday here.

    Follow live highlights and updates of the meeting here.

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  • 6 Companies That Raised Their Dividends This Week

    6 Companies That Raised Their Dividends This Week

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    This copy is for your personal, non-commercial use only. To order presentation-ready copies for distribution to your colleagues, clients or customers visit http://www.djreprints.com.

    https://www.barrons.com/articles/apple-pepsi-dividend-stock-investing-3516ced1

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  • HSBC spin-off proposal reflects a longer-term issue that’s not likely to go away, says analyst

    HSBC spin-off proposal reflects a longer-term issue that’s not likely to go away, says analyst

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    Michael Makdad of Morningstar explains why he doesn't expect the resolutions will be passed.

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  • Apple reports better-than-expected quarter driven by iPhone sales

    Apple reports better-than-expected quarter driven by iPhone sales

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    Apple reported second-fiscal quarter earnings on Thursday that beat Wall Street’s soft expectations, driven by stronger-than-anticipated iPhones sales. Apple CEO Tim Cook told CNBC that the quarter was “better than we expected.” 

    However, Apple’s overall sales fell for the second quarter in a row. The tech giant’s shares rose nearly 2% in extended trading, and continued climbing when Apple gave forecast data points about the current quarter.

    related investing news

    Apple's profit report is the market's next big test now. JPMorgan breaks down whether it can deliver

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    Here’s how the company did versus Wall Street expectations per Refinitiv consensus expectations: 

    • EPS: $1.52 per share vs. $1.43 expected 
    • Revenue: $94.84 billion vs. $92.96 billion expected 
    • Gross margin: 44.3% vs. 44.1% expected 

    Apple reported $24.16 billion in net income during the quarter compared to $25.01 billion in the year-earlier period. Total revenue was off 3% from $97.28 billion in the prior quarter.

    Here’s how Apple’s individual product lines did versus StreetAccount consensus expectations: 

    • iPhone revenue: $51.33 billion vs. $48.84 billion expected 
    • Mac revenue: $7.17 billion vs. $7.80 billion expected 
    • iPad revenue: $6.67 billion vs. $6.69 billion expected 
    • Other Products revenue: $8.76 billion vs. $8.43 billion expected 
    • Services revenue: $20.91 billion vs. $20.97 billion expected 

    Apple didn’t provide formal guidance, continuing its practice that dates back to 2020 and the start of the Covid-19 pandemic. Management typically provides some data points on a call with analysts.

    Apple finance chief Luca Maestri said the company expects overall revenue in the current quarter to decline about 3%.

    “We expect our June quarter year-over-year revenue performance to be similar to the March quarter assuming that the macroeconomic outlook does not worsen from what we are projecting today for the current quarter,” Maestri said on a call with analysts. He added the company is facing macroeconomic challenges in digital advertising and mobile gaming, which is part of Apple’s services business.

    The highlight of Apple’s report was iPhone sales, which grew from the year-ago quarter even as the broader smartphone industry contracted nearly 15% during the same time, according to an IDC estimate.  

    IPhone revenue increased 2% during the quarter that ended April 1, suggesting that parts shortages and supply chain issues that had hampered the product for the last few years — including an iPhone factory shutdown late last year — had finally abated.  

    “It was quite a good quarter from an iPhone point of view, particularly relative to the market when you look at the market stats,” Cook told CNBC’s Steve Kovach.  

    Chief Executive Officer (CEO) of Apple Tim Cook waves to people during the opening of the first Apple Inc. flagship store in Mumbai, India on April 18, 2023.

    Imtiyaz Shaikh | Anadolu Agency | Getty Images

    Apple’s Mac and iPad businesses didn’t fare as well. The company warned last quarter that both business segments would decline, partially due to parts shortages but they fell further than expected.  

    Apple’s Mac sales were off more than 31% to just over $7.17 billion. But that’s a difficult comparison from the year-earlier period when Apple was still benefiting from the end of a pandemic boom in PC sales and a shift to its own chips that offer longer laptop battery life.  

    “There’s really two reasons for that,” Cook said. “One is the macro situation in general. And the other is where we’re still comparing to the very difficult compare of the M1 MacBook Pro 14 and 16-inch from the year-ago quarter.” 

    Revenue from iPads declined nearly 13% to $6.67 billion.  

    Apple’s Services business includes monthly subscriptions, revenue from Apple’s App Store, warranties and search-licensing revenue from companies like Google. Apple reported $20.9 billion in services revenue, a 5.5% year-over-year increase, signaling the company’s highest-margin business line continues to grow.  

    Apple’s wearables division, including Apple Watch and headphones such as AirPods, dropped 1% during the quarter, beating analyst expectations. Last fall, the company released a more expensive Apple Watch, called Ultra.  

    Apple’s China regional business, which includes the mainland, Taiwan and Hong Kong, reported $17.81 billion in sales, down from last year’s $18.34 billion. Analysts had hoped that China’s demand for electronics would rise in the quarter as the company exits out of Covid-era lockdowns and other restrictions.  

    While sales shrunk in most regions that Apple monitors, they grew in the Asia Pacific region to $8.11 billion.

    Cook was optimistic about Apple’s prospects in India after his visit last month to the country where he opened Apple stores and met with politicians.  

    “The switcher and first-time buyer metrics look very good there for India,” Cook said. Apple uses the term “switcher” to refer to first-time iPhone buyers who previously had Android devices.  

    As expected, Apple’s board authorized $90 billion in share repurchases and dividends. Apple said it paid $23 billion in buybacks and dividends in the March quarter. Apple also raised its dividend 4% to 24 cents per share.  

    Cook also said that Apple was not planning layoffs like those that other big tech companies have started over the past year.  “I view that as a last resort and, so, mass layoffs is not something that we’re talking about at this moment,” he said.  

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  • Apple earnings show surprise jump in iPhone sales and a 4% dividend hike

    Apple earnings show surprise jump in iPhone sales and a 4% dividend hike

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    Apple Inc. on Thursday revealed surprise growth in its iPhone business during the first three months of the year, overcoming a shortfall in Mac revenue as the company promised investors billions more in dividends and stock repurchases.

    Apple shares
    AAPL,
    -0.99%
    rose 2.5% in extended trading.

    The company reported fiscal second-quarter revenue of $94.8 billion, down from $97.3 billion a year before, while analysts had been expecting $92.9 billion. Revenue for the iPhone category rose to $51.3 billion from $50.6 billion, with analysts surveyed by FactSet expecting a decline to $48.7 billion.

    Chief Financial Officer Luca Maestri said on the earnings call that the iPhone growth was driven by “strong performance in emerging markets from South Asia and India to Latin America and the Middle East.”

    The company recently opened its first two Apple stores in India, and Chief Executive Tim Cook noted opportunity in India.

    “What I do see in India is a lot of people entering the middle class, and I’m hopeful that we can convince some number of them to buy an iPhone,” he said.

    Apple logged net income of $24.2 billion, or $1.52 a share, compared with $25 billion, or $1.52 a share, in the year-prior quarter. Analysts were modeling $1.43 a share in earnings on average, according to FactSet.

    Apple’s results arrived amid concern about the state of consumer-electronics spending, given worrisome third-party data points and cautious signals from players like Qualcomm Inc.
    QCOM,
    -5.54%
    and DuPont de Nemours Inc.
    DD,
    -0.53%    .

    See also: Qualcomm stock falls as backed up Apple iPhone inventory contributes to weak outlook

    The company saw steep revenue declines in both the iPad and Mac categories. Sales of iPads fell to $6.7 billion from $7.6 billion a year ago and matched the FactSet consensus. Mac revenue sank to $7.2 billion from $10.4 billion, while analysts were looking for $7.8 billion.

    The Mac segment was up against tough comparisons to a year-ago period that saw the “incredibly successful rollout of our M1 chips,” Cook noted. It’s “facing some macroeconomic and foreign exchange headwinds as well.”

    Apple’s wearables, home and accessories category was essentially flat, with sales of $8.8 billion. The FactSet consensus called for $8.4 billion. The services segment showed growth, with revenue up to $20.9 billion from $19.8 billion, roughly in line with the FactSet consensus of $21.0 billion.

    Maestri noted that “certain services offerings, such as digital advertising and mobile gaming, continue to be affected by the current macroeconomic environment,” though advertising, Apple Care and video set revenue records for the March quarter.

    Executives shared some very big-picture views on recent financial-services initiatives, though without any financial specifics. Apple’s recently launched savings account, which has a 4.15% yield, has had an “incredible” initial response, while Apple Pay Later, a buy-now-pay-later product, has received “really good” feedback as well, they said.

    Read: Apple Card savings account has an attractive 4.15% interest rate, but beware of these pitfalls before signing

    Apple also announced Thursday that it was boosting its buyback program by $90 billion while upping its quarterly dividend by 4% to 24 cents a share. That compares to a $90 billion increase to the share-repurchase authorization and 5% dividend hike a year ago.

    While Apple stopped giving traditional guidance at the start of the pandemic, Maestri said on the call that he expects June-quarter revenue growth to be similar to what was seen in the March quarter on a year-over-year basis, assuming a stable macroeconomic climate.

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  • UBS net profit drops 52% in the first quarter due to hit from U.S. legal battle

    UBS net profit drops 52% in the first quarter due to hit from U.S. legal battle

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    UBS reported its first results since the deal to buy Credit Suisse.

    Fabrice Coffrini | Afp | Getty Images

    UBS reported a 52% annual drop in net profit on Tuesday amid a legacy litigation matter, but maintained it is a “source of stability” for its clients during periods of high uncertainty.

    These are the bank’s first results since announcing its takeover of rival Credit Suisse.

    UBS said net profit came in at $1.03 billion for the first quarter, coming in well below analyst expectations of a net profit near $1.75 billion for the period, according to Refinitiv.

    The hit in net income came from increased provisions of $665 million following a U.S. residential mortgage-backed securities litigation matter.

    Speaking to CNBC’s Geoff Cutmore, UBS CEO Sergio Ermotti — who resumed his post on April 5 — said, “We are in advanced discussions. Hopefully we can close this 15-year old chapter very soon.”

    Ermotti also described the latest results as “very solid.”

    “We saw some inflows coming from Credit Suisse, but, most importantly, we continue to see even after the transaction, we saw inflows, so the demonstration that our clients believe we are a source of stability.” he told CNBC.

    “We are part of the solution and not part of the problem,” he added.

    Here are other highlights of the quarter:

    • Revenues reached $8.75 billion vs 9.38 billion a year ago
    • Operating expenses were $7.2 billion from $6.6 billion a year ago
    • CET 1 capital ratio, a measure of bank solvency, came in at 13.9% vs 14.1% a year ago

    The lender also said that it attracted $28 billion in net new money in its global wealth management unit, of which $7 billion were registered in the last 10 days of March — after the announcement of its acquisition of Credit Suisse.

    Credit Suisse Deal

    UBS shares have jumped more than 10% since the news that it was buying its embattled Swiss competitor last month. At the time, UBS said that the deal, brokered by Swiss regulators, would create a “leading global wealth manager” with more than $5 billion in total invested assets.

    However, analysts at Barclays said that the market is “significantly underestimating” the complexity of integrating Credit Suisse within UBS, Reuters reported. Ermotti told CNBC on Tuesday that the merger should be completed within the second quarter.

    “In the next couple of weeks I will redefine our target operating model for the future, (I) also come out with some organizational announcements and clarity,” he said, adding that the merger with Credit Suisse is not a “risky” transaction and will deliver for shareholders.

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  • Big bank earnings season is over. Here’s how our stocks stack up against peers

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    Morgan Stanley Chairman and Chief Executive James Gorman speaks during the Institute of International Finance Annual Meeting in Washington, October 10, 2014.

    Joshua Roberts | Reuters

    Big bank earnings are behind us. After hearing from the nation’s biggest institutions over the past couple weeks, we can breath a sigh of relief: They were better than feared.

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  • J&J to Lift Dividend for 61st Year. These 6 Firms Are Raising Payouts Too.

    J&J to Lift Dividend for 61st Year. These 6 Firms Are Raising Payouts Too.

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    https://www.barrons.com/articles/stocks-raising-dividends-j-j-costco-60f5d6ad

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