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Market Update

Amazon, Microsoft and Alphabet Earnings Rise on Cloud Services


Author: Mukesh Buch
ticker.com
Last Update: 2:47 PM ET April 28 2017

1:40 PM New York – Amazon net income surged after web services business revenues jumped 42%. Alphabet net soared on higher advertising revenues. Chevron and Exxon posted strong results on higher crude oil prices. Intel net jumped. Microsoft revenue misses expectations.

Tollbooth Index edged up 7.02 to 12,041.90.

Earnings Review

Amazon.com, Inc (AMZN) gained 1.9% or $17.36 to $935.74 after the online market place operator and cloud services provider reported net sales in the first-quarter ending in March soared 23% from a year ago to $35.7 billion.

Net income in the quarter surged 41% to $724 million or $1.48 per diluted share from $513 million or $1.07 in the same quarter last year.

The online retailer said web services business in the quarter jumped 42% and operating cash flow increased 53% to $17.6 billion and free cash flow increased to $10.2 billion from $6.7 billion in a year ago period.

Amazon forecasted net sales in the second-quarter between $35.25 billion and $37.75 billion, increase in the range 16% of 24% compared to year ago period.

Alphabet Inc (GOOG) jumped 4.2% or $36.86 to $911.03 after the search engine services provider reported revenues in the first-quarter ending in March soared 23% from a year ago to $35.7 billion.

Net income in the quarter jumped 28.6% to $5.4 billion or $7.73 per diluted share from $4.2 million or $6.02 in the same quarter last year.

""The strong performance in our advertising business allows us to take bigger bets within Google to fuel the growth of additional revenue streams,"" said chief financial officer Ruth Porat.

Chevron Corporation (CVX) gained 73% to $106.24 after the petroleum refiner said total revenues in the first-quarter ending in March soared 41.5% from a year ago to $33.4 billion.

Net in the quarter swung to profit $2.7 billion or $1.41 per diluted share from a loss of $725 million or 39 cents in the same quarter last year.

“We benefitted from increasing crude oil prices and ongoing efficiencies being implemented across the company,” said chairman and chief executive officer John Watson.

Colgate-Palmolive Company (CL) slipped 1.5% or $1.06 to $72.24 after the consumer products maker stated net sales in the first-quarter ending in March were flat from a year ago to $3.8 billion.

Net income in the quarter jumped 6.9% to $570 million or 64 cents per diluted share from $533 million or 59 cents in the same quarter last year.

“Clearly the first quarter was challenging and did not meet our organic sales growth expectations,” said chairman, president and chief executive officer Ian Cook.

Exxon Mobil Corporation (XOM) rose 53 cents to $81.79 after the oil and gas refiner reported revenues in the first-quarter ending in March soared 30% from a year ago to $63.3 billion.

Net income in the quarter soared 122% to $4.01 billion or 95 cents per diluted share from $1.8 billion or 43 cents in the same quarter last year.

General Motors Company (GM) slid 2 cents to $34.51 after the automobile manufacturer said net revenues in the first-quarter ending in March jumped 10.6% from a year ago to $41.2 billion.

Net income in the quarter surged 33.5% to $2.6 billion or $1.70 per diluted share from $1.9 billion or $1.24 in the same quarter last year.

Intel Corporation (INTC) slumped 3.3% or $1.24 to $36.20 after the microprocessors maker reported revenues in the first-quarter ending in March rose 8% from a year ago to $14.8 billion.

Net income in the quarter jumped 45% to $3 billion or 61 cents per diluted share from $2 billion or 42 cents in the same quarter last year.

The board of directors approved $10 billion increase in share buyback program that increases the amount currently available for future buybacks to approx $15 billion.

Microsoft Corporation (MSFT) fell 25 cents to $68.01 after the information technology provider reported total revenues in the third-quarter ending in March jumped 7.8% from a year ago to $22.1 billion.

Net income in the quarter advanced 26.3% to $4.8 billion or 61 cents per diluted share from $3.8 billion or 47 cents in the same quarter last year.

“Strong execution and demand for our cloud-based services drove our commercial cloud annualized revenue run rate to more than $15.2 billion,” said executive vice president and chief financial officer Amy Hood.

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Sources: Data collected by 123jump.com and Ticker.com from company press releases, filings and corporate websites. Market data: BATS Exchange. Inc