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Market Update

Microsoft Sales Rise 18%, Apple Net Surges 12%


Author: Mukesh Buch
ticker.com
Last Update: 7:32 AM ET July 23 2014

12:20 PM New York Apple net surged 12%. Boeing net soared 52%. Biogen net jumped 46%. Dow Chemical net tumbled 62%. GlaxoSmithKline profit plummeted 29%. General Dynamics net plunged 16%. Microsoft net declined 7%. PepsiCo net fell 2%.

Tollbooth Index rose 0.2% or 16.48 to 9,555.74.

Earnings Review

Apple Inc (AAPL) climbed 3.2% or $3.04 to $97.53 after electronics and wireless gadgets maker reported revenue in the third-quarter ending on June 28 jumped 5.9% to $37.43 billion from a year ago.

Net income in the quarter surged 12.3% to $7.75 billion or $1.28 a diluted share compared to $6.90 billion or $1.07 from a year earlier.

Sales and revenue in the quarter from iPad business dropped 9% to 13.3 million units or $5.89 billion and sales and revenue from iPod business tumbled 36% to 2.9 million units or $442 million from a year ago.

Luca Maestri, chief financial officer said Apple has completed $74 billion of $130 billion capital return program to shareholders with six quarters remaining to its complete the full plan.

Apple forecasted revenue in the fourth-quarter between $37 billion and $40 billion and gross margin in the range of 37% to 38%.

The Boeing Company (BA) dropped 2.3% or $2.94 to $126.83 after the aerospace company reported revenue in the second-quarter ending in June rose 1% to $22.04 billion from a year ago period.

Net earnings in the quarter soared 52% to $1.65 billion or $2.24 a diluted share compared to $1.09 billion or $1.41 from a year earlier.

Boeing said commercial airplanes booked 264 net orders during the quarter. Backlog remains strong with over 5,200 airplanes valued at a record$377 billion and backlog in the defense, space and security segment was $63 billion of which 36% orders were with international customers.

Biogen Idec Inc (BIIB) surged 10.7% or $32.58 to $336.26 after the biotechnology company reported total revenue in the second-quarter ending in June climbed 40% to $2.42 billion from a year earlier.

Net income in the quarter jumped 46% to $714.5 million or $3.01 a diluted share compared to $490.7 million or $2.06 from a year earlier.

The Dow Chemical Company (DOW) climbed 2.5% or $1.31 to $53.61 after the diversified chemicals maker stated net sales in the second-quarter ending in June increased 2.3% to $14.92 billion from a year ago.

Net income in the quarter tumbled 62.3% to $882 million or 73 cents a diluted share compared to $2.34 billion or $1.87 from a year earlier.

GlaxoSmithKline Plc (GSK) plunged 5% or $2.66 to $50.56 after the healthcare group reported revenue in the second-quarter ending in June dropped 8.3% to $9.34 billion from a year ago.

Net income in the quarter plummeted 29.3% to $1.18 billion or 23 cents a diluted share compared to $1.67 billion or 33 cents from a year earlier.

General Dynamics Corporation (GD) increased 1% or $1.20 to $119.75 after the aerospace and defense products maker said revenue in the second-quarter ending in June dropped 4.6% to $7.47 billion from a year ago.

Net income in the quarter plunged 155% to $541 million or $1.61 a diluted share compared to $640 million or $1.82 from a year earlier.

The company added total potential contract value the sum of all backlog components in the quarter was $99.5 billion.

Microsoft Corporation (MSFT) rose 35 cents to $45.20 after the software developer reported revenue in the fourth-quarter ending in June climbed 18% to $23.38 billion from a year ago period.

Net income in the quarter dropped 7% to $4.61 billion or 55 cents a diluted share compared to $4.96 billion or 59 cents from a year earlier.

PepsiCo, Inc (PEP) jumped 2.9% or $2.60 to $91.76 after the food and beverage company reported revenue in the second-quarter ending on June 14 edged up 0.5% to $16.89 billion from a year ago period.

Net income in the quarter fell 2% to $1.98 billion or $1.29 a diluted share compared to $2.01 billion or $1.28 from a year earlier.

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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