Surprise. Apple is expected to report another dazzling quarter on Tuesday, propelled by strong demand for its bestseller iPhone and the sleeker iPad 2 tablets.
Google shares soared in after-hours trade as the company’s second-quarter revenue zoomed past Wall Street expectations. The Internet giant’s net revenue, which excludes fees paid to partner websites, jumped 36 percent to $6.92 billion in the second quarter. That’s not all investors had to cheer, though. Growth in a range of businesses from mobile to online video helped the company ring up a strong quarterly profit that also exceeded investor expectations. “Google should be viewed as a growth company again this quarter,” Stifel Nicolaus analyst Jordan Rohan told Reuters. “The combination of mobile search, Android, ad exchange, YouTube, and the core search businesses, they’re all doing well. Google is no longer a one-trick pony.”
Apple should report another spectacular quarter, but tempered by growing caution over how supply constraints will squeeze margins and restrain iPhone and iPad sales.
Video game publisher Electronic Arts will report first-quarter earnings after the bell today, amid Wall Street’s hopes of an industry comeback in the second half of the year. June video game sales in the U.S. were pretty dismal, but investors are probably betting on big-name game titles and possible game console price cuts to pump some life back into the slump in the second half of 2009.
Germans love to see the mighty fall just a little bit more than the rest of the world, and freshly ousted Porsche CEO Wendelin Wiedeking is a perfect candidate. Yes, he made tiny, almost bankrupt Porsche successful again but did he have to be so smug about it? And was he really worth the millions of euros he raked in every year in a country where executive pay is a thorny issue? His salary, which made him the best paid German manager by far, was a topic of endless fascination in the German media. Wiedeking never divulged how much he made but unapologetically said he deserved what he earned — estimated to have been 80 million euros last year. Even before his dismissal was official, speculation swirled about how extraordinary his severance payment would be, with some putting the figure at 250 million euros. In the end it was less but still a handsome sum of 50 million euros, considering he leaves Porsche with a huge mountain of debt. As Wiedeking climbs off the throne, he is eager to burnish his blue collar credentials and in Robin Hood style announced he would donate what’s left of his payment after taxes to charity. Some of it will go to a foundation for Porsche staff, some into projects to create new jobs and, in a final swipe at his critics, he promised to give to a charity for “elderly and suffering journalists”. Take that, hacks.
Here are some of the day’s stories on the media industry:
Bernstein Research Criticizes Media CEO Pay (B&C)
“The Bernstein report notes that the top earner among media executives in 2008 was CBS Corp. CEO Leslie Moonves, who was paid total compensation of $31.9 million last year. He is followed by Disney CEO Robert Iger, who earned $30.6 million; News Corp.’s Rupert Murdoch, who took home $27.5 million; and Viacom’s Philippe Dauman was paid $23 million. Time Warner CEO Jeff Bewkes took home the least of the top five, at $19.9 million,” writes Claire Atkinson.