On Thursday, after the bell, the following companies reported earnings: Chipotle Mexican Grill, Inc. (NYSE:CMG), Advanced Micro Devices, Inc. (NYSE:AMD), SanDisk Corporation (NASDAQ:SNDK), and Microsoft Corporation (NASDAQ:MSFT).
Chipotle Mexican Grill, Inc. (NYSE:CMG)
Right now, somewhere, David Einhorn is saying, “I told you so!”
Chipotle Mexican Grill, Inc. (NYSE:CMG) reported its $2.27 of EPS, and came in 3 cents below expectations, with its $700.5 million revenue missing the $702.3 million estimated mark. It did increase 18.4 percent from last year’s $591.9 million.
Shares tanked 12 percent on the news in after-hours trading.
Third-quarter net income was $72.3 million ($2.27 per share), up from $60.4 million ($1.90 per share) in the previous year.
Comparable restaurant sales increased 4.8 percent, and were affected by the rolloff of earlier price increases.
Chipotle Mexican Grill, Inc. (NYSE:CMG) said looking ahead, its same-restaurant sales may decelerate. The company has forecast mid-single digit growth for 2012 and for 2013, flat to low-single digit growth.
Wells Fargo analysts had told investors to pay attention to ‘ CMG’s own analysis of the competitive threat posed by Taco Bell’s new “Cantina Bell” menu.’ This sounds similar to what David Einhorn stated several weeks ago.
Advanced Micro Devices
It was a tough quarter for Advanced Micro Devices, as it reported a larger-than-expected loss and weaker-than-expected revenue.
The company saw a net loss excluding items of 20 cents per share, as compared to 15 cents per share earnings in the previous year.
Revenue dropped to $1.27 billion, from $1.69 billion in the prior year.
The company also announced it will slash 15 percent of its workforce, and added it is “announcing a restructuring plan, designed to reduce operating expenses and better position the company competitively.”
Its CEO, Rory Read, notes, “the PC industry is going through a period of very significant change, that is impacting both the ecosystem and AMD” and “it is clear that the trends we knew would re-shape the industry are happening at a much faster pace than we anticipated. As a result, we must accelerate our strategic initiatives to position AMD to take advantage of these shifts, and put in place a lower cost business model.”
For the fourth quarter, AMD forecasts revenue to fall between 5 percent and 13 percent, as compared to the third quarter.
SanDisk Corporation (NASDAQ:SNDK)
In the third quarter, SanDisk Corporation (NASDAQ:SNDK) earned $77 million (31 cents per share) with $1.27 billion in revenue (a 10 percent fall).
Excluding items, it saw earnings of 48 cents per share.
Analysts had forecast a 33 cents per share profit on $1.22 billion in revenue. This exceeded expectations from an increase for chips utilized in smartphones and tablets, along with a declining supply that raised the price of flash memory.
For the latest quarter, the company reported a profit of $76.5 million (31 cents per share), down from $233.3 million (96 cents per share) a year earlier. Excluding stock compensation, tax adjustments, and other items, per-share profits fell to 48 cents from $1.20.
Product revenue fell 11 percent to $1.18 billion, while licenses and royalty revenue dropped 3.3 percent.
According to MarketWatch, Chief Executive Sanjay Mehrotra said SanDisk Corporation (NASDAQ:SNDK)’s retail business reported strong results for the quarter and the company increased shares.
Microsoft Corporation (NASDAQ:MSFT)
Microsoft Corporation (NASDAQ:MSFT) saw a fiscal first quarter revenue of $16.01 billion, down 8 percent from last year’s $17.37 billion. .
Net income was $4.47 billion (53 cents per share). This compares to $5.74 billion (68 cents per share) from the prior year.
Analysts had forecast earnings at 56 cents per share, and $16.42 billion in revenue.
Due to the Windows Upgrade Offer, Windows 8 pre-sales to OEMs prior to the general public and and the Office Offer, the quarterly results included the deferral of $1.36 billion in revenue and $0.13 in diluted earnings per share.
Steve Ballmer, chief executive officer at Microsoft, said,”The launch of Windows 8 is the beginning of a new era at Microsoft. Investments we’ve made over a number of years are now coming together to create a future of exceptional devices and services, with tremendous opportunity for our customers, developers, and partners.”