Earnings Results Have Netflix, Yahoo, IBM, and More Turning Heads

Netflix Misses Subs Forecasts

Despite managing to beat earnings estimates by $0.07 per share with EPS of $0.09 and meeting revenue expectations at $2.1 billion (good for 28% year-over-year growth), Netflix, Inc. (NASDAQ:NFLX) shares are 12% lower in pre-market trading due to the company’s weak subscriber numbers for the quarter. For the period, Netflix added a net 160,000 users in the United States plus 1.52 million users overseas. Netflix had been guiding for around 2.5 million worldwide subs, while investors were anticipating slightly more. Netflix management remains confident the results were a blip on the radar, guiding for 2.3 million worldwide subscribers for the third quarter, though this fell 1.2 million below estimates. It remains to be seen whether competition or higher prices has anything to do with the lower sub numbers. 64 funds that we track were long Netflix, Inc. (NASDAQ:NFLX) at the end of March, unchanged from December 31.

Solid Quarter for EMC

Although the merger with Dell removes a lot of buzz from its latest earnings report, EMC Corporation (NYSE:EMC) turned in a solid second quarter, with EPS of $0.45 on revenue of $6 billion. The results beat estimates by $0.03 per share on the bottom-line and were in-line with top-line expectations. Profits rose by 19% year-over-year while revenue retreated by 1.2% year-over-year. The company’s shareholders are expected to meet today to vote on whether to give the thumbs up to Dell’s $60 billion merger offer. Of the 766 active funds that we track, 83 owned shares of EMC Corporation (NYSE:EMC) at the end of March.

VMware Turns in a Good Quarter

VMware, Inc. (NYSE:VMW) reported excellent second quarter results of EPS of $0.97 on revenue of $1.69 billion, beating the consensus estimates by $0.02 per share and $10 million respectively, pushing shares up by 8.5% in the pre-market hours. Revenue rose by 5.6% year-over-year, while license revenue inched up by 1% to $644 million. License revenue plus sequential change in unearned license revenue rose by 5% year-over-year. The company’s free cash flow for the quarter was a respectable $539 million. 36 funds in our system owned shares of VMware, Inc. (NYSE:VMW) at the end of the first quarter, down by seven funds over the quarter.

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