Business Report: Earnings, Antitrust Trial, and e-Bay Investigation

Strategic Insights -

Major companies have reported quarterly earnings this morning, with Compaq exceeding expectations, while Mobil and Walt Disney saw lower numbers. The Microsoft antitrust trial continues, with testimony from a top executive. Meanwhile, the online auction company eBay's stock surged after reporting higher earnings and announcing a stock split. Additionally, Warner-Lambert plans to buy Agouron Pharmaceuticals in a $2 billion deal, and Delta Airlines has backed down on its surcharge for non-Internet ticket buyers.

Key Takeaways:

  • Compaq reported earnings of $758 million in the fourth quarter, exceeding Wall Street's expectations.
  • Mobil reported a net loss of $152 million, while Walt Disney saw its earnings fall to $622 million.
  • The Microsoft antitrust trial continues, with testimony from a top executive, Paul Maritz, who was questioned about Microsoft's interest in the Internet browser market.
  • eBay's stock jumped more than $70 a share after reporting higher fourth-quarter earnings and announcing a 3-for-1 stock split.
  • The New York City Department of Consumer Affairs is investigating eBay for the sale of potentially counterfeit sports memorabilia.
  • Warner-Lambert plans to buy Agouron Pharmaceuticals in a stock swap deal worth just over $2 billion.
  • Delta Airlines has backed down on its surcharge for non-Internet ticket buyers due to intense negative feedback from travel agents.

Statistics:

  • Compaq's fourth-quarter earnings: $758 million.
  • Mobil's net loss: $152 million.
  • Walt Disney's fourth-quarter earnings: $622 million.
  • eBay's fourth-quarter profits: $2.8 million, or 7 cents a share.
  • Value of Warner-Lambert's deal to buy Agouron Pharmaceuticals: $2 billion.
  • Percentage increase in eBay's stock: more than $70 a share.

Sources:

  • NPR Business Correspondent Jack Speer (via Bob Edwards), NPR News, Washington.
  • NPR's John McChesney, reporting from Washington.
  • The New York City Department of Consumer Affairs investigation (cited as a separate news item, not attributed to a specific individual or organization).
  • Warner-Lambert's press release announcing the deal to buy Agouron Pharmaceuticals.
  • Delta Airlines' statement regarding the surcharge for non-Internet ticket buyers.
  • Compaq's earnings report.
  • Mobil's earnings report.
  • Walt Disney's earnings report.
  • eBay's earnings report.