Tech giants report mixed results despite bright outlook

Five technology giants are reporting earnings Thursday, providing the latest indication of how they're rebounding from an economic slowdown earlier this year related to the COVID-19 pandemic.

The results come a day after the CEOs of Facebook, Google and Twitter testified before the Senate Commerce Committee, rebuffing accusations of anti-conservative bias and promising to aggressively defend their platforms from being used to sow chaos in next week’s election.

Apple and Amazon are also reporting results Thursday.

APPLE

Apple didn’t get its usual late-September surge in sales from its latest iPhone models, but still managed to eke out a slight increase in revenue during the July-September quarter, although profits fell.

Production problems lingering from factory shutdowns during the onset of the pandemic led to the iPhone delay, although analysts expect it will bounce back with a huge quarter during the October-December quarter that includes the holiday shopping season.

Apple’s revenue rose to $64.7 billion. Analysts surveyed by FactSet Research had braced for a dip to $63.6 billion. Profit, meanwhile, dropped 7% from the year-ago quarter to $12.7 billion. But earnings per share amounted to 73 cents, above the average estimate of 70 cents among analysts polled by FactSet.

Apple’s stock dropped more than 4% in extended trading. Investors may have been jarred by a significant decline in iPhone sales, which plunged 21% from last year to $26.4 billion. Apple offset that erosion with strong sales of its services, including its music and streaming services, as well as its wireless ear buds and internet-connected watch.

ALPHABET

Google’s corporate parent Alphabet returned to robust financial growth during the summer. In the previous quarter, it suffered its...