July 22, 2008 in Business

Bank of America down, but beats estimates

 

Bank of America Corp. became the latest in a string of big banks whose second-quarter earnings, while hurting from the impact of the credit crisis, still beat Wall Street expectations.

The nation’s second-largest bank by assets said Monday its profit fell 41 percent as losses in its struggling mortgage operations were offset by business in other parts of the company. But it easily beat Wall Street estimates, and its stock rose 3.9 percent.

Cupertino, Calif.

Apple earnings strong, but outlook hurts stock

Macintosh and iPod sales helped boost Apple Inc.’s fiscal third-quarter earnings 31 percent, beating Wall Street’s expectations Monday, but investors pummeled the stock after Apple issued soft guidance for the current quarter.

Apple earned $1.07 billion. Revenue jumped 38 percent to $7.46 billion, ahead of analysts’ average view for $7.37 billion in sales.

Apple said it shipped more Macs in the quarter than ever before – 2.5 million, up 41 percent from a year ago.

SAN FRANCISCO

Yahoo yields to Icahn; sale still possible

Yahoo Inc. averted a showdown with rabble-rousing investor Carl Icahn on Monday by giving him three seats on its board of directors in a truce that still leaves the door open for a possible sale to Microsoft Corp.

The compromise spares Yahoo from more bickering with Icahn, an acerbic billionaire who had spent the past two months spearheading a rebellion to replace the Internet company’s entire board in retaliation for its rejection of Microsoft’s $47.5 billion takeover bid in May.

SAN FRANCISCO

Genentech weighs Roche buyout offer

Biotechnology pioneer Genentech Inc. mulled Roche Holding’s $43.7 billion offer for its remaining shares Monday as investors made clear their feelings that the Swiss pharmaceutical giant should pay considerably more.

But some analysts said Roche, already Genentech’s majority shareholder, has leverage to keep the price for the maker of the blockbuster cancer therapy Avastin and other cancer treatments from spiraling much higher.

From wire reports


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