Facebook Inc. on Wednesday reported sales and profit that exceeded analysts' estimates as the operator of the world's most popular social-networking service attracted more marketers to its mobile-advertising services.
Second-quarter revenue rose 53 percent to $1.81 billion, the company said. Second-quarter profit excluding certain items was $488 million, or 19 cents a share. Analysts had projected profit of 14 cents on sales of $1.62 billion on average, according to data compiled by Bloomberg.
Mobile made up 41 percent of advertising dollars in the second quarter, up from 30 percent in the first quarter. Chief Executive Officer Mark Zuckerberg's push to make advertising for smartphones and tablets a priority is starting to pay off, as users increasingly access Facebook on mobile devices, according to Martin Pyykkonen, an analyst at Wedge Partners in Greenwood Village, Colo.
“They're getting better on their execution in the business of selling advertising,” Pyykkonen said. “There's a long way to go, but things are going in the right direction.”
NEW YORK (AP) — PepsiCo Inc. reported a better-than-expected quarterly profit on Wednesday and said its mixed portfolio played a role, underscoring its resistance to splitting up its drinks and snacks businesses.
The company, which makes Gatorade, Tropicana, Quaker and Frito-Lay chips, said higher prices helped lift revenue for its Americas food division. Volume also rose 2 percent for the unit, its biggest division by sales.
Revenue in Europe, Asia, the Middle East and Africa also saw gains, helped by stronger volumes.
Its Americas beverage unit remained a drag, however. Revenue slipped as price hikes failed to offset a 3.5 percent decline in volume. Sodas in North America fell in the mid-single digits, while non-carbonated drinks declined in the low-single digits.
Boeing posted a bigger-than-expected second-quarter profit as it ramped up deliveries of commercial planes like its 737 and 787.
The company also raised its full-year earnings guidance.
Boeing is in the midst of a boom in airplane orders as airlines in Asia and Latin America expand. It is speeding up production of its 737 as well as the new 787. Deliveries of all commercial planes rose 13 percent to 169 planes during the quarter.
Deliveries of the 787 were temporarily halted earlier this year when the plane was grounded because of battery problems. But they resumed in May and Boeing delivered 16 of the jets during the quarter. It said it still expects to deliver at least 60 of the 787s this year — the same goal it had before the battery problems surfaced in January.
Boeing's net income rose 13 percent to $1.09 billion, or $1.41 per share. During the same period last year it earned $967 million, or $1.27 per share. Revenue rose 9 percent to $21.82 billion.
PEORIA, Illinois (AP) — Second-quarter earnings at Caterpillar fell 43 percent as dealers cut inventories more than the company expected. The world's largest maker of construction and mining equipment cut its profit and revenue outlook for the year.
Caterpillar reported earnings of $960 million, or $1.45 per share, compared with $1.7 billion, or $2.54 per share a year ago. Revenue slid 15.8 percent to $14.63 billion.
That's well short of Wall Street's expectations. Analysts surveyed by FactSet had expected a profit of $1.69 per share on revenue of $15.09 billion.
The Peoria, Ill., company said dealers cut inventories by $1 billion as the global mining industry slowed due to reduced growth in China.
Commodity prices have fallen as well, forcing miners to cut back on orders.
DEARBORN, Mich. (AP) — Ford Motor Co. reported better-than-expected earnings for the second quarter and raised its profit and sales forecasts for the year as strong U.S. pickup truck demand and growing sales in China offset persistent — but narrowing — losses in Europe.
Ford earned $1.23 billion in the April-June period, up 18.5 percent from a year ago.
The company's results were propelled by a $2.3 billion profit in North America, a second-quarter record for that region. Pickup truck sales are booming in the U.S., where construction companies and other businesses are rapidly replacing the fleets they held onto during the recession. Sales of Ford's F-Series pickup — which has long been the best-selling vehicle in the U.S. — jumped 26 percent in the second quarter, or more than three times the average industry increase.