Jim Cramer's Thoughts on Abbott and Netflix Earnings, Qualcomm and Apple
Here's what Jim Cramer is watching in the markers Wednesday morning.
Abbott's Earnings Abbott Labs reported first-quarter earnings that topped its own forecast.
Abbott reported adjusted earnings of 63 cents per share on revenue of $7.5 billion, a 2% year-over-year increase.
Analysts polled by FactSet were expecting the company to report earnings of 61 cents per share on revenue of $7.48 billion.
"We're right on track with our expectations to start the year," said Abbott's Chairman and CEO Miles D.
"All of our key long-term growth drivers are performing well and we're targeting another year of strong sales and earnings growth." The company reported a 5.5% increase in worldwide medical device sales, led by double-digit growth in its electrophysiology, heart failure, structural heart and diabetes care devices.
Qualcomm's Ending its Dispute With Apple Qualcomm ended its long-running dispute with Apple over royalty payments for Qualcomm's smartphone equipment.
Qualcomm shares jumped 23.2% on Tuesday after the settlement was announced.
The settlement ends all litigation between the two companies and includes an unspecified payment from Apple to Qualcomm, according to a press release issued by Apple following the settlement.
As part of the settlement, Apple and Qualcomm also reached a six-year license agreement, effective as of April 1, including a two-year option to extend, and a "multiyear chipset supply agreement." Qualcomm said that the deal with Apple will add about $2 in "incremental EPS" as its chip shipments ramp up.
Netflix's Earnings Forecast Falls Short Netflix said it added 9.6 million paid streaming subscribers in the first quarter, beating guidance of 8.9 million, but its outlook for the second quarter disappointed.
Netflix said it expects to add 5 million paid subscribers in the second quarter, an 8% decline from a year earlier, with 300,000 new subscribers in the U.S. and 4.7 million new subscribers internationally.
Analysts were calling for 5.5 million paid new subscribers.
In addition, Netflix said its expects revenue in the quarter of $4.93 billion, slightly below consensus, while earnings were forecast at 55 cents a share, well below expectations of 99 cents.
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