Good Fourth Quarter Earnings Expected from Facebook Inc (NASDAQ:FB) and Apple Inc. (NASDAQ:AAPL)
Facebook Inc (NASDAQ:FB) and Apple Inc. (NASDAQ:AAPL)’s report for quarterly earnings are expected to be revealed this week; the reports will decide which of these companies is doing great and which is doing not so great. It is expected that a rise in the sales of iPhones will be reported by Apple because of the release of some newer models last month. On the other hand, Facebook is likely to get even more revenue from its mobile advertising.
Amazon.com, Inc. (NASDAQ:AMZN), Google Inc (NASDAQ:GOOG), Samsung Electronics Co., Ltd. (KRX:005930) and Google Inc (NASDAQ:GOOG) have also revealed results that are better than the estimates of the last two weeks. There was also some disappointing news in the form of results announced by Symantec Corporation (NASDAQ:SYMC) – a software security company – Yahoo! Inc. (NASDAQ:YHOO) and International Business Machines Corp. (NYSE:IBM).
According to Research Director of Gartner Inc, Van Baker the old companies are soon getting replaced by the newer and more advanced companies in the same field. Last week results of Microsoft Corporation (NASDAQ:MSFT) revealed that the company was on the decline in its personal computer area of business whereas its earnings were over double in its cloud services business.
The reported results showed that Google went over the $1,000 per share mark for the first time whereas Amazon too enjoyed an increase of 9.4% per day. Daniel Morgan, Synovus Trust Co.’s fund manager said that older tech companies, such as IBM are lagging behind in terms of earnings as compared to new companies, such as Amazon and Google. Synovus Trust owns shares of Microsoft.
According to the forecast by IDC, a market-research company, shipments for PCs will decline by almost 10$ in the year 2013 worldwide. The company believes that shipments for mobile phones are likely to go up by a figure of 7.3% during the same time. This rise will mainly be because of an increased demand in tablet and smartphones. It is expected that tablet sales will go up by 59%.
Because of iPhone 5c and 5s release last month, it is highly likely that Apple will reveal better than expected results for its fourth quarter. This prediction is made by Morgan Stanley (MS)’s Katy Huberty. Bloomberg’s data shows that according to estimates Apple might have sold around 33 million of its iPhones in its fourth quarter; last year Apple’s sales figures for the same quarter were 26.9 million.
Analysts believed that Apple will enjoy sales of $36 billion and earnings of almost $7.21 billion, which would be equal to $7.92 per shares.
Facebook on the other hand has won more earnings through advertising that reaches million of its users worldwide who use tablets and smartphones to access Facebook. The profit for the third quarter will go up by 47% ($455.8 million). The sales will also improve by 51% to mark a record of $1.91 billion.
Tucker Bounds, Facebook’s spokesperson and Kristin Huguet Apple’s Spokesperson refrained from commenting on these estimates.
The results of Intel Corporation (NASDAQ:INTC)’s results show the benefits and cons of switching to clouds services based on internet and mobile phones. The third quarter revenue of the company showed very little difference from the results of the same quarter last year. The fourth quarter results are expected to go down as well.
In Monday’s current session, shares of Intel Corporation (NASDAQ:INTC) went up by 0.14% ($24.26), shares of Apple Inc. (NASDAQ:AAPL) went up by 0.22% ($527.14) whereas shares of Facebook Inc (NASDAQ:FB) went down by -1.48% ($51.13).