Apple Just Can’t Please — Wednesday’s IP Market Recap

by Marc Bastow | January 23, 2013 5:23 pm

[1]Great earnings news from two tech titans pushed markets forward Wednesday to keep the Dow Jones and S&P 500 at five-year highs. That served as a precursor to another pair of big tech earnings — Apple (NASDAQ:AAPL[2]) and Netflix (NASDAQ:NFLX[3]).

One company’s report was followed by fireworks. The other was followed by a firing squad.

Apple reported record revenues and earnings for its fiscal first quarter — sales grew 18% to $54.5 billion and came in just below forecasts, while earnings inched ahead to $13.1 billion, with EPS of $13.81 topping expectations of $13.47. AAPL also sold a record 47.8 million iPhones and 22.4 million iPads, which came in line with estimates.

However, gross margins declined to 38.6%, and the company’s second-quarter revenue forecast came in shy of estimates, leading investors to slam AAPL shares by nearly 6% in early after-market trading.

On the flipside, Netflix (NASDAQ:NFLX[3]) was rocketing after the bell, up 30% after Q4 earnings came in the polar opposite of expectations. NFLX earned 13 cents per share, shocking analysts who expected the company to lose the same amount. Revenues of $945 million also came in well ahead of estimates.

During regular Wednesday trading, IBM (NYSE:IBM[4]) and Google (NASDAQ:GOOG[5]) headed higher thanks to good news during their reports the previous day. IBM’s 4% gains were enough to lead the Dow and challenge its all-time high prices, while Google advanced 5%.

Disney (NYSE:DIS[6], +2.3%) and 3M (NYSE:MMM[7], +0.2%) also were toying with all-time highs, helping the Dow Jones gain 0.49% to 13,779.93. The Nasdaq improved 0.33% to 3,153.67, and the S&P 500 edge up 0.15% to 1,494.81.

Earnings were not positive across the board, however. Luxury retailer Coach (NYSE:COH[8]) disappointed investors[9] as revenues missed forecasts. COH shares fell more than 16%.

Lastly, McDonald’s (NYSE:MCD[10]) warned that same-store sales could fall in January, though its earnings did top estimates, and shares managed to finish fractionally higher.

Earnings notables for Thursday include Bristol-Myers Squibb (NYSE:BMY[11]), Lockheed Martin (NYSE:LMT[12]), AT&T (NYSE:T[13]) and Microsoft (NYSE:MSFT[14]).

Three Up

• Advanced Micro Devices (NYSE:AMD[15]): Up 11.4% (28 cents) to $2.73.
• Safeway (NYSE:SWY[16]): Up 5.4% ($1.01 cents) to $19.85.
• Groupon (NASDAQ:GRPN[17]): Up 5.3% (26 cents) to $5.09.

Three Down

• Molycorp (NYSE:MCP[18]): Down 10.8% (95 cents) to $7.88.
• R.R. Donnelley (NASDAQ:RRD[19]): Down 4.9% (48 cents) to $9.28.
• Research In Motion (NASDAQ:RIMM[20]): Down 3.1% (55 cents) to $17.35.

Marc Bastow is an Assistant Editor at InvestorPlace.com. As of this writing, he was long AAPL and MSFT.

Source URL: https://investorplace.com/2013/01/wednesdays-ip-market-recap-ibm-goog-lcc-dis-coh-mcd/

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