AOL is on top of the world again and Apple is collapsing! Except really not at all!
I admit, I don’t completely understand “the street”, as in the expectations of analysts as to what a company’s earnings will be. I also can’t quite wrap my brain around some of the financial reporting that’s out there (Marketplace, naturally, excluded). Case in point: AOL is still losing money because it’s a completely outmoded brand doing things people don’t want much anymore. But! The company’s revenues declined at the lowest rate in seven years so it’s being celebrated now.
Meantime, Apple reported a ton of money at its own earnings call but it’s being played out as terrible news.
The company posted net income of $8.8 billion on revenue of $35 billion. Earnings per share were $9.32. Both numbers missed Wall Street estimates. Analysts surveyed by Thomson Reuters had been expecting Apple to post earnings per share of $10.36 on revenue of $37.2 billion.
Apple’s guidance for the fourth quarter also disappointed: The company forecast $7.65 a share for earnings on revenue of $34 billion. That’s low even for Apple, whose guidance is often comically conservative. Analysts had been looking for $10.22 a share in earnings on revenue of $38 billion.
From the technology team over here at MTR, I’ll just point out that Apple will soon launch the iPad Mini and the iPhone 5 so hopefully the struggling company can get back on track. AOL will soon be launching a new chat room about The X-Files.
Marketplace is on a mission.
We believe Main Street matters as much as Wall Street, economic news is made relevant and real through human stories, and a touch of humor helps enliven topics you might typically find…well, dull.
Through the signature style that only Marketplace can deliver, we’re on a mission to raise the economic intelligence of the country—but we don’t do it alone. We count on listeners and readers like you to keep this public service free and accessible to all. Will you become a partner in our mission today?