Earnings watch: Google, Morgan Stanley

The investment bank swings to a profit, and the Internet search giant is due to report after the closing bell.

By MSN Money Partner Jul 19, 2012 8:53AM
By Joseph Woelfel, TheStreet.com

Google (GOOG), set to report after the close Thursday, is expected to post fiscal second-quarter earnings of $10.05 a share on revenue of $8.42 billion. Google posted a profit of $10.08 a share on revenue of $8.14 billion in the first quarter and earnings of $8.74 a share on revenue of $6.92 billion in last year's second quarter.

Shares of Google have fallen more than 10% this year, while the Nasdaq has gained 13%. Google's issues are well known, namely slowing revenue growth, margin pressures stemming from rapid expansion and a pricey acquisition of Motorola Mobility.

Morgan Stanley (MS) reported a profit of $564 million, or 29 cents per share, compared with a loss of $558 million, or 38 cents per share, in the year-ago quarter. Even after taking one time items the results generally beat analyst expectations for earnings of 32 cents, Reuters reports. Revenue fell 24% to $6.95 billion from $9.21 billion a year earlier. Analysts expected revenue of $7.54 billion.

MS shares were down about 3.57% to $13.49 at last check in pre-market trading.

IBM (IBM) eased past Wall Street's expectations in its earnings Wednesday but fell short on revenue, mainly because of foreign currency pressures. For the full year, IBM lifted its earnings outlook, saying it now expects a profit of at least $15.10 a share, up from a prior view of $15 a share and ahead of consensus at $15.06 a share.

IBM shares climbed 2.5% in pre-market trading at last check.

Microsoft (MSFT) said Windows 8, the upgrade to its operating system, will go on sale Oct. 26. The software is designed to work on both PCs and tablet computers. The software giant also reports quarterly results Thursday and analysts expect Microsoft to post fiscal fourth-quarter earnings of 62 cents a share on revenue of $18.11 billion. The estimates don't take into account a write-down of $6.2 billion related to Microsoft's 2007 acquisition of aQuantive. (Microsoft owns and publishes Top Stocks, an MSN Money site.)

Other notables reporting earnings Thursday include Dow components Travelers (TRV) and Verizon Communications (VZ).

Internet giant eBay (EBAY) on Wednesday reported quarterly earnings of 56 cents a share on revenue of $3.39 billion. Analysts were looking for profit of 55 cents a share on revenue of $3.41 billion. EBay saw huge growth in at its PayPal division, which saw revenue rise 26% year over year.

Please help us to maintain a healthy and vibrant community by reporting any illegal or inappropriate behavior. If you believe a message violates theCode of Conductplease use this form to notify the moderators. They will investigate your report and take appropriate action. If necessary, they report all illegal activity to the proper authorities.
100 character limit
Are you sure you want to delete this comment?


Copyright © 2014 Microsoft. All rights reserved.

Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.


StockScouter rates stocks from 1 to 10, with 10 being the best, using a system of advanced mathematics to determine a stock's expected risk and return. Ratings are displayed on a bell curve, meaning there will be fewer ratings of 1 and 10 and far more of 4 through 7.

123 rated 1
262 rated 2
480 rated 3
651 rated 4
649 rated 5
629 rated 6
616 rated 7
496 rated 8
346 rated 9
111 rated 10

Top Picks

TAT&T Inc9



Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.

Contributors include professional investors and journalists affiliated with MSN Money.

Follow us on Twitter @topstocksmsn.