Corporate Earnings

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Facebook Inc soundly beat quarterly revenue estimates on Wednesday after heavy holiday advertising by e-commerce retailers, but it warned Apple’s impending privacy changes could hurt revenue by interfering with ad targeting.

The world’s biggest social media company said in its outlook that it expected to face “significant ad targeting headwinds in 2021.” Facebook forecast that Apple’s update of its iPhone operating system to iOS 14 could start biting into revenues as early as the end of the first quarter.

Reuters | |

Apple Inc on Wednesday reported holiday quarter sales and profits that beat Wall Street expectations, as new 5G iPhones helped push handset revenue to a new record and sparked a 57% rise in China sales.

Apple shipped its iPhone 12 lineup several weeks later than usual, but an expanded number of models and new look appear to have tapped into pent up demand for upgrades, especially in China. The company also posted strong sales of its Mac laptops and iPads in the quarter, driven by consumers working, learning and playing from home during the pandemic.

Reuters | |

AT&T Inc said on Wednesday it wrote down its premium TV business, which includes satellite television unit DirecTV, by $15.5 billion, reflecting the impact of years of cord-cutting in the industry as viewers move to cheaper online streaming services.

The fourth-quarter writedown comes as sources have told Reuters AT&T has entered into exclusive talks to sell a minority stake in DirecTV to private equity firm TPG in a deal seen valuing the division at above $15 billion.

AT&T purchased DirecTV for $68 billion including debt in 2015.

Reuters | |

Boeing Co took a hefty $6.5 billion charge on its all-new 777X jetliner as it posted a record annual loss on Wednesday due to the coronavirus pandemic and the aftermath of a two-year safety crisis over its 737 MAX.

The coronavirus crisis has exacerbated a drop in demand for the industry’s largest jetliners, with airline customers shunning deliveries of planes due to international travel restrictions, hurting cash flow at the U.S. planemaker.

Boeing said it now expects the 777X, a larger version of the 777 mini-jumbo, to enter service by late 2023, delaying the jet’s entry for the third time, due to tougher certification requirements after the 737 MAX safety crisis and plummeting demand.

Reuters | |

U.S. aerospace manufacturer Raytheon Technologies Corp reported better than expected quarterly profit and sales Tuesday but forecast lower than expected 2021 revenue amid a slow global economic environment triggered by disruptions from the COVID-19 pandemic.

Shares of the company rose as much as 6% in early trading after the company said its free cash flow could almost double to $4.5 billion in 2021.

The company provided a full-year revenue outlook, however, of about $63.4 billion to $65.4 billion which was below analysts’ estimate for revenue of about $67.28 billion.

Reuters | |

General Electric Co on Tuesday offered an upbeat outlook for its business this year after reporting a surge in quarterly free cash flow, sending its shares soaring in early trade.

The Boston-based industrial conglomerate predicted a free cash flow of $2.5 billion to $4.5 billion this year after generating cash flow of $4.4 billion in the fourth quarter.

That compares with Refinitiv’s average analyst estimate of $3.03 billion for 2021 and about $2.6 billion for the latest quarter.

Reuters | |

Verizon Communications Inc said on Tuesday it added fewer monthly bill-paying phone subscribers than expected during the fourth quarter, as it faced increased competition from rivals T-Mobile US Inc and AT&T Inc.

The company added 279,000 postpaid phone subscribers in the quarter, below FactSet estimates of 443,100.

The economic uncertainty surrounding the COVID-19 pandemic has caused people to rethink spending.

Reuters | |

Johnson & Johnson on Tuesday forecast 2021 profit above Wall Street estimates and promised data from its widely watched coronavirus vaccine trial soon, as the healthcare conglomerate races to develop a potential single-dose vaccine for COVID-19.

Separately, J&J chief financial officer told CNBC that the company was expecting data sometime next week and was optimistic that it would be robust.

Public health officials are increasingly counting on ...

Kimberly Redmond | |

Kimberly-Clark said sales of facial tissues, paper towels and toilet paper rose 14% during the fourth quarter of 2020, a demand that the personal care company said was driven by the ongoing COVID-19 pandemic.

On Monday, the Dallas-based company issued its latest quarterly and annual earnings report, which shows $4.8 million in net sales during the final three months of 2020, a 4% increase from the prior-year period.

Kimberly Redmond | |

CSX Corp expects the economy and rail shipments to rebound in 2021, particularly during the second half of the year, but remains unsure of just how much growth there will be.

On Thursday, the Jacksonville, Florida-based railroad reported relatively flat fourth-quarter earnings but said it hauled more freight during final three months of the year.

CSX’s quarterly net profit was $760 million, $0.99 a share, compared with $771 million, $0.99 per share, a year earlier. Revenue declined 2% from the prior year to $2.83 billion.