Novak: “At Pizza Hut we're obviously disappointed with second quarter results and particularly with the very
poor performance in our U.S. business, which contributes about half of Pizza Hut's division's total profit. We now expect full-year operating profit of Pizza Hut to fall well short of our initial expectations.”
iPhone sales are up 13% (35.2M units sold) which has helped offset the drop in iPad sales (13.3M units sold). This is a big miss from the analyst expected iPad sales of 14M-15M units. iPad, which saw a meteoric rise and the fastest growing product ever, now has a concerning fall in sales.
Good sign that it's dropping in advance of new hardware release cycle
There has been a lot of talk of Apple "parking" their profits offshore to avoid US taxes. With Apple doing MOST of their business offshore, and the vast majority of their manufacturing offshore, maybe their handling of their accumulated profits isn't that unreasonable - for either the US Government or for Apple shareholders...
Novak: “At Pizza Hut we're obviously disappointed with second quarter results and particularly with the very
poor performance in our U.S. business, which contributes about half of Pizza Hut's division's total profit. We now expect full-year operating profit of Pizza Hut to fall well short of our initial expectations.”
Although TWTR has managed to show impressive year-over-year (YoY) growth in each of the areas listed here, the numbers are far less impressive on a quarter-over-quarter (QoQ) basis. For example, mobile MAUs growth actually slowed to 6.6% QoQ growth from 7.6% QoQ growth, while ad revenue per thousand timeline views actually fell in Q1 2014 compared to Q4 2013. Ultimately, the devil is in the details and the company does continue to lose money on a GAAP-adjusted basis, while also adding to its accumulated deficit (pg. 5).
Q2 14 vs. Q1 14 vs. Q4 13
- MAUs 271 million vs. 255 million vs. 241 million (6.3% vs. 5.8%)
- Mobile MAUs 211 million vs. 198 million vs. 184 million (6.6% vs. 7.6%)
- Timeline views 173b vs. 157b vs. 148b (10.2% vs. 6.1%)
- Advertising revenue per thousand timeline views $1.60 vs. $1.44 vs. $1.49 (11.1% vs. -3.4%)
Warranty expense was $9.3 million. If this was distributed among 28,000 cars (Tesla had delivered approximately 31,000 by the end of that quarter, but many of those came in late June and thus probably wouldn't have yet needed warranty work), it would come to $332 per car for the quarter which is $1328 per car per year which-- over a four year warranty period-- would be $5300 in repairs per car. Yet Tesla appeared to be accruing a "normalized reserve" of only approximately $2800 per car (adding $17.93 million to the reserve while delivering 6457 cars, with that $17.93 million figure excluding a one-time addition of $2 million more to pay for titanium undershields. Thus, Tesla could be "under-reserving" by as much as $2500 to $5200 per car.
Don't pay too much attention to Non-GAAP measures. Employee based stock compensation is a real, ongoing expense, and should be accounted for under any analysis & valuation. Same with discontinued operations. Just because the Company has classified a portion of its business as discontinued, investors still need to incorporate these numbers (losses) in evaluating the Company. The Company is putting out these Non-GAAP measures to make its operations seem better than they actually are, since they are not accounting for Stock Based Compensation & Discontinued Operations.
Even though revenues increased 56.4% year over year, the Company still generated a net loss of $15.2MM on Revenues of $195.6MM. This indicates that while the Company has been able to grow its revenues, it has not been able to cover all of its expenses, both operating and capital, which has resulted in the net loss (GAAP).