Adjusted Earnings are what these companies report as their ongoing core after-tax adjusted earnings in their earnings releases.
How did they do? Not well, with their 2Q 2013 Total Earnings down 15% from the 2Q 2012. And 10 of the 17 US Big Technology Corps had earnings declines.
The two stick-out earnings winners were Facebook, up a monster 65% and Qualcomm, up 23%.
The three stick-out winners on the Revenue increase front were Facebook, up 53%, Qualcomm, up 35%, and Google, up 19%.
The earnings quality was much better than the down 15%. As one illustration here, these companies are required to expense up front their huge amounts of R&D expenditures, even though they receive, for the most part, huge future earnings benefits for many years from these R&D investments.
Particularly, four companies made large R&D Investments in the 2Q 2013, which were substantially higher than their R&D Investments in the 2Q 2012: Google $1,987 mil, up 29%, Cisco Systems $1,542 mil, up 14%, Qualcomm, $1,298 mil, up 33%, and Apple $1,178 mil, up 34%.
Clearly, the US Congress-mandated Sequester spending cuts have harmed these Technology Corps earnings in the 2Q 2013.
Further, US Congress lack of US economic stimulation harmed these companies.
And the US Congress lack of compromise, in even refusing to permit the US Government Budget, which has been already passed by both the US House and the US Senate, to proceed to Conference has increased business uncertainty, and thereby dampening investments in US Technology products.
Below here are the Adjusted Earnings of these 17 large US Technology Corps in both the 2Q 2013 and the 2Q 2012:
| 2Q 2013 | 2Q 2012 | |||
| Adjusted | Adjusted | |||
| Net | Net | |||
| Income | Income | |||
| From | From | |||
| Continuing | Continuing | Increase | Increase | |
| Operations | Operations | (Decrease) | (Decrease) | |
| mil $s | mil $s | Amount | % | |
| Big Technology | ||||
| 488 | 295 | 193 | 65% | |
| Qualcomm | 1,823 | 1,486 | 337 | 23% |
| Ebay | 822 | 730 | 92 | 13% |
| Texas Instruments | 469 | 446 | 23 | 5% |
| Cisco Systems | 2,728 | 2,605 | 123 | 5% |
| EMC | 907 | 867 | 40 | 5% |
| Broadcom | 436 | 435 | 1 | 0% |
| Oracle | 4,114 | 4,143 | (29) | -1% |
| 3,233 | 3,362 | (129) | -4% | |
| IBM | 3,579 | 4,077 | (498) | -12% |
| Hewlett Packard | 1,698 | 1,949 | (251) | -13% |
| Apple | 6,900 | 8,824 | (1,924) | -22% |
| Microsoft | 4,390 | 6,123 | (1,733) | -28% |
| Intel | 2,000 | 2,827 | (827) | -29% |
| Western Digital | 477 | 872 | (395) | -45% |
| Dell | 372 | 761 | (389) | -51% |
| Seagate Technology | 447 | 1,028 | (581) | -57% |
| Total all 17 | 34,883 | 40,830 | (5,947) | -15% |
