by Kyle Woodley | January 24, 2012 4:59 pm
The ubiquitous iPhone did it again. Apple (NASDAQ:AAPL) reported a first-quarter earnings increase of 118% — handily beating Wall Street expectations — with most of the credit going to strong sales of its powerhouse smartphone.
Apple’s earnings for the period were $13.87 per share ($13.1 billion), up $7.44 per share from the year-ago period and easily besting Thomson Reuters analysts’ EPS expectations of $10.08. Revenues of $46.3 billion bested Q4 2010 by 73% and beat expectations of $38.85 billion. Apple shares shed 1.6% before Tuesday’s afternoon report, but were up more than 7% in delayed after-hours trading.
Also reporting Tuesday was Yahoo (NASDAQ:YHOO), which announced adjusted EPS of 25 cents on $1.32 billion in revenues, beating estimates of 24 cents and $1.19 billion, respectively. YHOO shares have traded slightly up (1%) since co-founder Jerry Yang stepped down from Yahoo’s board of directors, but they traded flat in Tuesday’s run-up and didn’t move much immediately after the bell.
Tuesday also was a slightly upbeat day for the Dow Jones Industrial Average, but the five Dow Jones components that reported earnings this morning didn’t really help the cause.
DuPont (NYSE:DD), Johnson & Johnson (NYSE:JNJ) and McDonald’s (NYSE:MCD) all reported earnings beats Tuesday. But while DuPont ticked up all of 0.1% and J&J finished absolutely flat, McDonald’s took a 2.2% cut — its largest single-day drop in about a month — with investors turning their noses at MCD’s 10th straight quarter of double-digit earnings growth.
Meanwhile, Verizon (NYSE:VZ) dropped 1.6% after taking a huge one-time pension hit and also falling short on adjusted earnings expectations, but The Travelers Companies (NYSE:TRV) was the hardest-hit Dow component, down 3.8% despite earnings in line with Wall Street estimates.
Kyle Woodley is the assistant editor of InvestorPlace.com. As of this writing, he did not hold a position in any of the aforementioned securities. Check out recaps from previous trading days here.
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