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Market Update

Alcoa Tumbles on Revenue Decline; Rent-A-Center, Seagate Plunge


Author: Mukesh Buch
ticker.com
Last Update: 12:53 PM ET October 11 2016

12:40 PM New York Alcoa net surged but revenues declined. Bank of The Ozarks net jumped. Fastenal net slumped 5%. GE intends to acquire LM Wind Power. Phillips 66 and its parent in a 30 asset deal. Seagate tumbled on weak outlook.

Tollbooth Index dropped 73.35 or 0.7% to 10,892.08.

Earnings Review

Alcoa Inc (AA) tumbled 10% or $3.16 to $28.35 after the aluminium producer reported revenues in the third-quarter ending in September declined 5% from a year ago to $5.2 billion.

Net income in the quarter surged 277.3% to $166 million or 33 cents per diluted share compared to the $44 million or 6 cents per share from the same quarter last year.

In the fourth quarter, Alcoa forecasted asset sales of about $250 million and gross proceeds from non-essential assets in 2016 are estimated to total about $1.2 billion.

Bank of The Ozarks Inc (OZRK) declined 4.3% or $1.66 to $39.66 after the financial services provider stated revenues in the third-quarter ending in September advanced 81.7% from a year ago to $175.2 million.

Net income in the quarter jumped 64.8% to $76 million or 66 cents per diluted share compared to the $46.1 million or 52 cents per share from the same quarter last year.

Fastenal Company (FAST) slumped 2.6% or $1.10 to $41.01 after the industrial and construction equipment wholesaler said revenues in the third-quarter ending in September rose 2.3% from a year ago to $3.01 billion.

Net income in the quarter dropped 4.9% to $384.7 million or $1.33 per diluted share compared to the $404.5 million or $1.38 per share from the same quarter last year.

General Electric Company (GE) rose 10 cents to $28.95 and the industrial conglomerate said it intends to acquire, a maker of rotor blades for wind turbines, LM Wind Power for about $1.65 billion from private equity firm Doughty Hanson.

The transaction is expected to close in the first-half of 2017.

Phillips 66 (PSX) fell 70 cents to $80.62 after the refining service provider agreed to acquire 30 assets, include crude oil pipelines, refined products and natural gas liquids pipelines and terminal systems from its parent company for $1.3 billion.

The deal is expected to complete in this month.

Rent-A-Center Inc RCII)) tumbled 28.2% or $3.63 to $9.25 after the specialty retailer forecasted earnings per share in third-quarter in the range of 5 cents to 15 cents and U.S. same-store sales are expected to decline 12%.

""Following implementation of new point-of-sale system, we experienced performance issues and outages resulted in a larger than expected negative impact on core sales,"" said Chief Executive Robert Davis.

Seagate Technology Plc (STX) plunged 6.2% or $2.36 to $35.61 after the Ireland-based data storage solution provider forecasted revenues in the first-quarter of about $2.8 billion compared to the earlier estimated to $2.7 billion and gross margin of about 29% from the previous guidance of at least 27%.

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Sources: Data collected by 123jump.com and Ticker.com from company press releases, filings and corporate websites. Market data: BATS Exchange. Inc