The results announced on Wednesday, particularly in Qualcomm's smartphone chip business, were in contrast to those from major mobile phone components makers in Asia including TSMC <2330.TW> and SK Hynix Inc <000660.KS>, which have warned of slower growth in their smartphone chip divisions. While revenue from Qualcomm's modem chips business - its largest - rose 6 percent in the three months ended March 25, revenue from its licensing business plunged 44 percent, reflecting the loss of revenue due to a high-profile patent battle with Apple Inc (AAPL.O). Qualcomm said it sees about 5 percent growth in modern mobile handsets for the remainder of the year, which is lower than anticipated.
AT&T Inc. (NYSE:T) posted its latest quarterly earnings results after hours Wednesday, which missed analysts’ expectations. Its revenue tallied up to $38.04 billion, below the $39.31 billion that analysts were projecting in their consensus estimate. AT&T added 187,000 linear video subscribers during the period, while AT&T added 312,000 subscribers to its streaming service DirecTV Now.
Ford Motor Co (F.N) on Wednesday outlined a plan to cut costs and boost profit margins at a faster pace than previously announced, which includes dropping traditional sedan models in North America that have become increasingly unpopular with consumers. Ford Chief Executive Jim Hackett told investors the company is undergoing "a profound refocus" of its operations and may exit unprofitable businesses. Ford said it expects pretax profit margins of 8 percent globally and 10 percent in North America by 2020, ahead of a previous target of 2022.
The world's largest payments network, like its smaller rival Mastercard Inc (MA.N), gets most of its revenue through transaction fees, which are earned every time a customer swipes their credit or debit card on the company's network. Visa has seen card payments grow thanks to higher U.S. consumer spending and rising oil prices. Higher gas prices translate to a higher dollar volume in transaction fees for Visa.