Big Tech reports mixed earnings amid virus
Big Tech companies reported mixed quarterly earnings on Thursday, a day after their top executives faced a tough congressional grilling over their market power and alleged monopolistic practices. The staggering economic fallout caused by the coronavirus pandemic was reflected in reports from Amazon, Facebook, and Google’s corporate parent, Alphabet. Alphabet reported its first-ever drop in quarterly revenue, a telling sign of a downturn in the digital ad market.
Apple delivered surprisingly strong numbers with both its revenue and profit rising, defying analysts’ lowered expectations. The iPhone maker’s revenue rose 11% to nearly $60 billion while profit rose 12% to $11.3 billion.
UPS sees record surge in daily shipping in 2Q
The pandemic-fueled boom in online shopping shows no signs of slowing down, providing more business for delivery companies like United Parcel Service Inc. UPS reported a second-quarter profit of $1.77 billion with the pandemic fueling a 21% surge in daily shipping volume, the largest quarterly increase ever recorded by the company.
The daily volume of goods shipped to homes, items that last year might have been purchased in stores, soared 65%. On a per-share basis, the Atlanta company on Thursday reported net income of $2.03. Earnings, adjusted for non-recurring costs, came to $2.13 per share. That is $1.09 better than Wall Street had expected.
Ford’s results not as grim as expected
Ford Motor Co. has posted results that were not as grim as expected for its second quarter that saw its U.S. factories shuttered for half the period to combat the spread of the coronavirus and car buyers sheltering in place.
Ford reported a $1.12 billion second-quarter net profit, pushed into the black by a $3.5 billion gain on the value of its stake in the Argo AI autonomous vehicle operation. Without the one-time gain, the company lost $1.9 billion, or a 35 cents per share. But that was far better than the $1.17 a share loss Wall Street had expected. A year ago, Ford posted a $148 million net profit.
Report: Huawei overtakes Samsung
A technology research firm says Huawei has overtaken Samsung to become the world’s biggest smartphone seller, as its home market in China emerged from the coronavirus pandemic better off than other economies.
Analysts at Canalys said Thursday that Huawei shipped 55.8 million devices in the second quarter of 2020.
While the figure was down 5% compared with a year ago, it was a smaller decline than rival Samsung, which saw smartphone sales slide 30% to 53.7 million.
Huawei still faces U.S. government sanctions restricting its international business, but it has come to dominate its domestic Chinese market, said Canalys, which estimated that the company’s shipments in China rose 8% in the April-June period. Mainland China now accounts for 70% of Huawei’s total smartphone sales, it said.
Universal Truckload reports 2Q earnings
Universal Truckload Services Inc. on Thursday reported second-quarter profit of $6.2 million.
On a per-share basis, the Warren, Michigan-based company said it had net income of 23 cents. Earnings, adjusted for non-recurring gains, came to 21 cents per share.
The trucking and logistics company posted revenue of $258 million in the period.
Universal Truckload shares have declined 5.5% since the beginning of the year. Shares hit $17.92 Thursday, a decline of 13% in the last 12 months.