This is the technology sector reported financial performance going into the October earnings season.
Quarterly Net Income
The Largest USA Tech Companies have reported quarterly aggregate net income of $14.8 billion, which is lower than the prior quarter $35.6 billion. This is a sequential QoQ decrease of -$20.8 billion and -58%!
What happened? HP reported an epic quarterly net loss of -$8.9 billion, which offset the Apple quarterly net income of +$8.8 billion. Microsoft reported a rare quarterly net loss of -$492 million. Eight of the eleven companies reviewed reported a QoQ decrease in net income.
A net decrease is not unusual or unexpected as summer is typically a slower financial performance on an annual cyclical basis for the tech sector. But the huge HP and extraordinary Microsoft net losses created a plunge. The only three sequential QoQ
increases were IBM (+$816 million) and Intel (+$89 million) and EMC (+$63 million).
For the latest quarters reported,
Apple continues dominating with an incredible $8.82 billion quarterly net income. Second was
IBM at $3.88 billion, third was
Intel at $2.83 billion, and fourth was
Google with $2.79 billion. Apple earned more than #2 IBM and #3 Intel
combined.
The rest of the pack follows with #5
Oracle at $2.03 billion, #6
Cisco at $1.92 billion, #7
Qualcomm at $1.02 billion rounding out the Billion Dollar Club. Trailing are #8
EMC at $689 million and #9
Amazon at a mere $7 million. Further behind are #10
Microsoft at a dismal net loss of -$492 million and #11
HP with the aforementioned epic loss of -$8.86 billion. Apple comprises approximately 60% of the total quarterly net income of the 10 tech companies listed!
Return on Assets
The Largest USA Tech Companies have reported an average return on assets of +12.29%, a multi-quarter low and -1.68% decrease from the prior quarter. Seven of the eleven companies reviewed reported decreases. The largest sequential QoQ
decreases were
HP (-8.564%),
Microsoft (-6.42%), and
Apple (-2.08%). The only significant sequential QoQ increase was
Cisco (+0.65).
For the latest quarters reported, Best of Breed goes to
Apple with a commanding and incredible lead of at +29.70% ROA. Apple is distantly followed by
Intel (+17.61%),
Qualcomm (+15.26%), and
Google (+15.02%), and
Microsoft (+14.95%). Next are #6
IBM (+14.30%), and #7
Oracle (+13.53%).
Significantly lagging the field are #8
Cisco at +9.01% and #9
EMC at +8.42%.
Amazon is #10 and a much lower +1.82%. Finally,
HP is last and #11 at a negative -4.44%.
I have included Amazon because of the Kindle Fire, streaming, cloud services, and the resulting competition with others listed.
Status
Updated through Oracle quarterly financial results reported 9-20-12
Next reports: October earnings season
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