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.
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.)
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.
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Investors are anxious to see if hiring can maintain its strong pace in the second half of the year.
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