Friday headlines include: American Airlines declaring a dividend, Earnings from Amazon, Baidu.com and Visa and McDonald's 86ing chicken products in its Hong Kong restaurants.
Air carrier American Airlines Group (AAL) declared a dividend of 10 cents per share Friday. It is the company's first dividend since 1980. The company also announced plans to spend $1 billion buying back its own shares and will make additional pension contributions. The company earned $1.98 per share on an adjusted basis, topping the mean analyst estimate for $1.95 per share in the year-ago quarter. Revenue was $11.36 billion, topping the $11.33 billion analysts had expected.
Online retailer Amazon (AMZN) said Thursday that it lost 27 cents per share in the second quarter, which was wider than the 13-cent -per-share loss that analysts had expected. Revenue was $19.34 billion, topping the $19.33 billion analysts had expected. The company said revenue growth slowed in the company's cloud computing division enough to affect the company's finances in a “meaningful way” although Amazon does not provide numbers for the AWS unit.
Chinese internet giant Baidu.com (BIDU) earned about $571.1 million in the quarter ended June 30 on revenue of $1.9 billion. The company said it plans to focus on apps and other mobile applications in the second half of 2014 as it tries to hold off increasing competition.
Credit card network operator Visa (V) said Thursday that it earned $2.17 per share in the second quarter on $3.16 billion in revenue. Analysts had expected the company to earn $2.09 per share on $3.16 billion in revenue. Payment volumes during the quarter rose by 11 percent to $1.2 trillion during the quarter. The number of transactions also increased by 11 percent to 16.7 billion.
McDonalds (MCD)has taken chicken nuggets and chicken filets off the menu in Hong Kong restaurants after a supplier in mainland China was accused of selling tainted meat. The company said that while much of the meat used in its Hong Kong stores comes from a different factory than the one implicated in the most-recent allegations, it has sold meat from the problem Shanghai factory in the past. McDonalds said the meat in those batches conformed to all Hong Kong safety standards.