earnings
JC Penney’s Media Spending Climbs But Sales Go Into Free Fall
CEO Ron Johnson Boosts TV Advertising, Adds Former Coca-Cola Marketer Sergio Zyman as an Adviser
Published: February 27, 2013
sales plummeted 25% in 2012, even as its measured media spending jumped 14% to $504 million.
Ron Johnson
The beleaguered retailer spent more on advertising than it has in any of the last five years and made major changes to its media mix, under the direction of CEO Ron Johnson. TV advertising climbed, particularly network TV spending, while radio and internet display investments dropped. And despiteMr. Johnson’s declaration late last summer that the retailer would invest heavily in newspapers, spending in that category was down slightly.
JC Penney reported that its fourth-quarter net loss widened to $552 million. The retailer posted an annual net loss of $985 million.
Sales in the fourth quarter, which includes the holiday-shopping period, slid 28% to $3.88 billion. For the year, sales fell 25% to $12.98 billion. That marks the lowest annual revenue the retailer has reported since at least 1987.
“It’s the worst performance that I’ve ever encountered in decades of covering retail — there’s nothing really to compare it against,” said Bernie Sosnick, an analyst at Gilford Securities.
Facebook Mobile Users Surpass Desktop Users For The First Time (FB)
Source: http://www.businessinsider.com/facebook-mobile-bigger-than-desktop-2013-1
Facebook’s earnings are out. The company beat Wall Street’s profit and revenue expectations.
Logitech gambled big on video conferencing, lost
Source: http://www.engadget.com/2013/01/23/logitech-video-conferencing-slowdown/
Logitech’s PR machine is on the loose this morning, trying to dampen expectations before the company announces its quarterly financial results later in the day. The key message is that we shouldn’t expect any great shakes from the video conferencing side of the business. In fact, there’ll be a $211 million charge against earnings, which is big enough to wipe out the previous quarter’s income four times over, and which stems entirely from this source of pain:
“The enterprise video conferencing industry has experienced a slowdown in recent quarters and consequently, through this period, the video conferencing unit has not sustained the growth Logitech originally anticipated.”
That’s a blanket statement, describing a whole section of the industry and not just pinning the blame on LifeSize, the video conferencing company that Logitech picked up in 2009 for $405 million. It so happens that Polycom and Cisco have also reported ongoing slides in video conferencing sales, so Logitech’s explanation is entirely justified — not that it makes the LifeSize acquisition look any smarter.
Filed under: Peripherals, Internet
Source: Reuters
Google announces Q4 2012 earnings; 2012 First Year to Break $50B Per Year Mark
Source: http://www.engadget.com/2013/01/22/google-announces-q4-2012-earnings/
For the three month period ending December 31st, 2012 the company pulled in $14.42 billion in revenue — a staggering 36 percent increase year-over-year. That doesn’t even include revenue generated by Motorola’s recently spun off Home division, which would have pushed the total to $15.24 billion. 2012 also marked the first year that the company broke the $50 billion barrier for total revenues. Of course, bringing in all that money means nothing if you can’t actually turn a profit. Good news for investors is that Google saw a net income of $2.89 billion this quarter, up from $2.71 billion the same time last year and $2.74 billion last quarter. Not surprisingly, a large chunk of that cash is coming from Google’s own properties and advertising — with Google-owned sites accounting for 67 percent of revenues and ads pulling in $12 billion on their own.
Obviously, a vast majority of Big G’s income is coming from the US, $5.99 billion in this quarter, but international markets are still hugely important for the company. 53 percent of its revenues came from overseas ventures, including $1.3 billion from the UK alone.
Facebook’s Revenue Deceleration Is Over! (FB)
Source: http://www.businessinsider.com/chart-of-the-day-facebook-revenue-2012-10
The reason Facebook tanked after its IPO is that revenue growth decelerated for the past several quarters.
That’s not good for a story with Facebook’s revenue and profit multiples. It needs to be growing very fast.
So it was very good news for Facebook today, when it reported earnings that showed the company has finally stabilized revenue growth – 32% last quarter and 32% this quarter. You can see this in the chart below.
What this chart doesn’t show is the even better news that Facebook has actually re-accelerated its advertising revenues – up to 32% y/y this quarter from 28% y/y last quarter.
Follow the Chart Of The Day on Twitter: @chartoftheday
A Tale Of Two Social Networks (FB, LNKD)
Source: http://www.businessinsider.com/chart-of-the-day-linkedin-vs-facebook-revenue-2012-8
LinkedIn reported earnings last night, and one thing that jumps out is its revenue growth rate, which is sky-high compared to Facebook.
As you can see here, LinkedIn’s year over year revenue growth rate is 89%. Facebook, on the other hand, is 32%. LinkedIn’s absolute revenue is much smaller. We’ve also plotted it below.
LinkedIn is reporting stronger growth than Facebook because it’s not as ad dependent as Facebook. LinkedIn has subscriptions, advertising, and job listings. Those three revenue streams help its growth.
It’s also growing at a greater clip because LinkedIn is coming into its own now. While LinkedIn is an older site than Facebook, it’s taken longer to mature. It seems to have figured out a great business model.
Facebook investors, the one’s still hanging onto the stock, are betting that Facebook will figure out a better business model in the long run too.
Follow the Chart Of The Day on Twitter: @chartoftheday
Let’s Take A Deep Breath And Look At iPhone Sales
Source: http://www.businessinsider.com/chart-of-the-day-iphone-unit-sales-2012-7
Apple whiffed on earnings last night sending the stock down 5%. This has lots of people (including ourselves) freaking out about Apple’s business.
If you take a step back and just look at how the iPhone had sold in the past, last quarter wasn’t that bad. It actually, seems to have locked back into the long term growth trend.
Apple had two gigantic iPhone quarters after it altered its release schedule. That got everyone too excited, perhaps, about the size and growth rate of the iPhone business.
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LinkedIn Hits Its Stride As A Public Company (LNKD, GRPN, ZNGA)
Source: http://www.businessinsider.com/chart-of-the-day-linkedin-groupon-zynga-2012-5
LinkedIn seems to have hit its stride as a public company, with the stock soaring 86% year to date.
LinkedIn reported earnings last night, and once again, it was a strong performance. In this era of hot tech companies IPOing and then getting crushed, it’s nice to see LinkedIn doing so well. The company has been pretty flawless in its execution as far as we can tell.
Below, you can see the stock growth comparisons for LinkedIn, Zynga, and Groupon from the first day of trading. It’s good news for Zynga. As you can see it took LinkedIn almost 7 months to get back to its opening trading price. Zynga has crashed, but if it can deliver a strong performance, it too could rebound.
As for Groupon, it has its work cut out for itself.
Follow the Chart Of The Day on Twitter: @chartoftheday
Red Hat Is The First Open Source Company To Top $1 Billion A Year (RHT)
Red Hat announced $1.13 billion in annual revenue, up 25 percent from a year ago.
This officially marks the first time a company that makes 100% of its living from open source products topped the billion-dollar mark.
For the quarter ending February 29, Red Hat posted revenue of $297 million, up 21% year-over-year, and GAAP EPS of 18 cents, up 6%. Its quarterly non-GAAP EPS was 29 cents, up 12% from last year.
Analysts, on average, expected earnings of 27 cents per share on revenue of $291.2 million.
Shares are up over 7% to about $55 in after hours trading.
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See Also:
- The Secret to Red Hat’s Billion-Dollar Success: Everyone’s The Boss
- Red Hat Rubs Its Billion-Dollar Year In Bill Gates’ Face
- Cisco Is Back: Beats Expectations And Stock Jumps
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Dr. Augustine Fou is Digital Consigliere to marketing executives, advising them on digital strategy and Unified Marketing(tm). Dr Fou has over 17 years of in-the-trenches, hands-on experience, which enables him to provide objective, in-depth assessments of their current marketing programs and recommendations for improving business impact and ROI using digital insights.
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