Yahoo Triples Profits After Cost-Cutting

Though first-quarter profit beat expectations, a growth story is absent

(NEWSER) - The fact that 66% of American companies beat their first-quarter earnings expectations is good, writes Henry Blodget in Clusterstock, but not as good as it looks. A closer examination of the data shows that while profits increased, revenues did not, and “you can’t fire your way to prosperity.” Earnings show companies adjusting to recession—not pulling out of it. “Until companies start surprising on revenue, all this particular ‘green shoot’ shows is that companies are reacting quickly to the recession.” More»

(NEWSER) - Steve Jobs may be on the sidelines—at least in theory—but Apple is showing no signs of a letdown. The company's quarterly profit surged 15% on strong sales of iPhones and iPods, the Wall Street Journal reports. Jobs, reportedly still very much calling the shots during his medical leave, remains on track to return at the end of June. More»

(AP) - Yahoo says its slump worsened in the first quarter as the recession made it more difficult to sell the ads that generate most of its profits. The company says it will cut 600 to 700 jobs, or about 5 percent of its work force. Yahoo says it earned $118 million, or 8 cents per share, during the first three months of the year. That represents a 78 percent drop from net income of $537 million, or 37 cents per share, in the year-ago period. More»

Or JPMorgan Posts $2.1B Profits, Beats Expectations

(AP) - JPMorgan Chase earned $2.14 billion in the first quarter, it said today, thanks to a boost in trading activity and deposits. The profit was 10% lower than last year, but better than expected, boosting hopes for a turnaround. Like other banks, JPMorgan is still seeing loan defaults increase—credit costs amounted to $10 billion, but the company is benefiting from a jump in mortgage refinancing and deposits, as well as low interest rates. More»

Companies to lose $4.7 billion in economic crisis

(NEWSER) - World airlines will lose $4.7 billion this year, and revenues will plummet $62 billion—worse than after 9/11, a top industry association said. The grim estimate is almost twice what it was in December and reflects “the rapid deterioration of the global economic conditions,” said the International Air Transport Association. But things look better in North America, the AP reports. More»