SAN FRANCISCO (AP) — Apple's latest quarterly report confirms the iPhone maker's growth has stalled along with its pace of innovation.
The results announced Tuesday mark the second straight quarter that Apple Inc.'s earnings have fallen from the previous year after a decade of steadily rising profits.
Despite the ongoing erosion, Apple fared slightly better than analysts had anticipated. That helped lift Apple's stock by $22.01, or more than 5 percent, to $441 in extended trading after the financial results came out. The shares remain down by more than 35 percent since the latest model of the iPhone came out 10 months ago.
Apple's revenue for the three months ending June 29 barely budged from last year. That's the smallest revenue increase since the Cupertino, Calif., company unleashed a mobile computing revolution with the iPhone's debut six years ago.
Apple hasn't released another breakthrough product since the iPad came out in 2010, raising concerns the company has lost its touch since the October 2011 death of founder Steve Jobs.
The company earned $6.9 billion, or $7.47 per share, in its fiscal third quarter, a 22 percent drop from $8.8 billion, or $9.32 per share.
The earnings topped the average estimate of $7.31 per share among analysts surveyed by FactSet.
Revenue totaled $35.3 billion versus $35 billion a year ago.
DALLAS (AP) — UPS said Tuesday that second-quarter profit fell 4 percent as customers shifted from premium toward lower-priced shipped services.
The company called the results disappointing and said it was adapting to the changing market.
United Parcel Service Co. said that it earned $1.07 billion, or $1.13 per share, down from $1.12 billion, or $1.15 per share, a year earlier.
The big delivery company tipped off investors about the headline number last week, so analysts were expecting the lower earnings per share.
Revenue rose 1.2 percent to $13.51 billion but was lower than expected. Analysts had forecast $13.59 billion, according to a FactSet survey. Costs rose 2 percent.
UPS shares tumbled on July 12 after the company foreshadowed the quarterly results and lowered its full-year outloook. It blamed the shift toward slower but cheaper shipping services, overcapacity in the worldwide air freight business, and slowing in the U.S. industrial sector.
The effect of those changes showed up in disappointing performance in the company's freight-forwarding and international package-delivery businesses. The company's supply chain and freight unit earned 21 percent less in operating profit than a year ago.
NEW YORK (AP) — Wendy's reported a quarterly net income that came in above Wall Street expectations and said it's selling 425 of its restaurants to franchisees, a move that's expected to help boost its profit margins.
Fast-food companies often own only a small percentage of their restaurants. This helps keep their operating costs in check and gives them a more stable stream of income that's tilted toward royalty fees and rent, rather than sales at restaurants.
Wendy's, based in Dublin, Ohio, also raised its dividend by 25 percent to 5 cents per share.
CEO Emil Brolick said in a statement that the sale of the restaurants will also help expand adoption of the company's new restaurant designs. That's because Wendy's plans to sell the restaurants to “well-capitalized” franchisees willing to pay for the remodeling.
The sleeker new look is part of Wendy's push to try to distance itself from the greasy, cheap image of traditional fast-food chains. By cleaning up its stores and offering more premium burgers and sandwiches, Wendy's is hoping to recast itself more in the style of Panera Bread or Chipotle, which tend to charge higher prices.
NEW YORK (AP) — RadioShack said Tuesday that its second-quarter loss widened as the struggling electronics retailer works to revamp its stores and product assortment ahead of the crucial holiday season.
Although the loss was bigger than analysts expected, revenue beat expectations and the company said it was bringing on consultants to help improve results.
RadioShack has been cutting costs, shuffling management and revamping stores and product selection to battle back against tough competition from online retailers and discount stores that have expanded their electronics offerings.
In a call with analysts, CEO Joe Magnacca, who came aboard in February, said he expects the turnaround to continue for the next several quarters, but he said a streamlined assortment of products — with more emphasis on categories like digital fitness and accessories like headphones and speakers — should be available in stores by the critical holiday season, during which retailers can make up to 40 percent of all revenue.
AT&T Inc., the largest U.S. phone company, posted profit that fell just below analysts' estimates as costs rose for smartphone discounts used to persuade more customers to sign long-term contracts.
Second-quarter earnings were 67 cents a share, leaving out one-time items, Dallas-based AT&T said Tuesday. Analysts had predicted earnings of 68 cents, according to data compiled by Bloomberg. Sales rose 1.6 percent to $32.1 billion, topping the average estimate of $31.8 billion.
AT&T added 551,000 contract customers, compared with 320,000 a year ago. Analysts had projected 499,000 new monthly subscribers.
AT&T Chief Executive Officer Randall Stephenson has been unveiling new subscription plans for heavy Internet users to catch up with Verizon Wireless, the largest U.S. mobile-phone carrier, which added 941,000 contract users last quarter.
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