Headlines for Wednesday include Yahoo topping earnings estimates, but missing on revenues; Bank of America misses earnings estimates, but beats on revenues, American Girl sales boost Mattel results, pawn shop results help boost First Cash Financial Services and Intel reports a weak quarter, but provides a positive guidance.
Internet portal Yahoo! (YHOO) reported earnings of 35 cents per share, compared to 23 cents per share in the year-ago quarter. Adjusted earnings were 38 cents per share, which beat the mean analyst estimate for 25 cents per share. Revenue was $1.14 billion, compared to $1.22 billion in the year-ago quarter. Revenue after ad commissions was $1.07 billion, which missed estimates for about $1.1 billion. The decline in revenue was largely due to a drop in display advertising sales. Marissa Mayer said the company is on course to “stabilize and grow with the market,” but sad it could take several years for the company to achieve growth rates seen at Google and Facebook.
Bank of America
Bank of America (BAC) reported first-quarter earnings of 20 cents per share, compared to 3 cents per share in the year-ago period. Analysts had expected the company to earn 22 cents per share. Expenses were lower in the quarter and the company set aside less money to cover loan losses. Revenue, on an adjusted basis, was $23.9 billion, an 8 percent decline from the year-ago period. Analysts had expected $23.3 billion. The company's consumer real-estate unit, which includes it mortgage banking operations, lost $1.31 billion in the quarter, compared to a loss of $1.14 billion in the year-ago period. The company credit-loss provision was $1.71 billion at the end of the quarter, compared to $2.42 in the year-ago period and $2.2 billion in the prior period. Litigation expenses was $881 million in the quarter, compared to $793 million in the year-ago period.
Toymaker Mattel (MAT) reported earnings of 11 cents per share on sales of $995.6 million. Analysts had expected the company to earn 9 cents per share on sales of $986.5 million. Sales of Barbie and Fisher-Price toys were lower, but the company's results were boosted by a 32 percent increase in sales of American Girls products as well as an increase in sales of Monster High dolls.
First Cash Financial Services
First Cash Financial Services (FCFS) said Wednesday that it earned 68 cents per share in the first quarter, in line with estimates. Revenue was $160.8 million, compared to estimates for $157.5 million. Revenue at the payday lending business declined in the quarter, but merchandise sales at pawn shops rose by 31 percent, while pawn loan fees were up 24 percent. Looking forward, the company said it expects to earn $3.10 to $3.24 per share for 2013, compared to analysts' estimates for $3.22 per share.
Chip-maker Intel (INTC) earned 40 cents per share on revenue of $12.9 billion in the first quarter, compared to analysts' estimates for 41 cents per share on revenue of $12.588 billion. Looking forward, the company said it expects revenue for the quarter ending in June to be within $500 million of $12.9 billion, compared to estimates for $12.854 billion.