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Market Update

Apple Net Rises 2%; Boeing, Biogen, Rockwell Net Drop


Author: Mukesh Buch
ticker.com
Last Update: 11:16 AM ET January 27 2016

11:15 AM New York Apple net income and revenues increased at a slower pace. AT&T net swung to profit after revenues surged 22%. Boeing net plunged 30% and aircraft deliveries declined 7%. Biogen net slumped 6%. General Dynamics net soared 9%. Parker-Hannifin net tumbled 32%. United Technologies net surged.

Tollbooth Index slipped 66.87 or 0.7% to 10,057.02.

Earnings Review

Apple Inc (AAPL) declined 3.1% or $3.07 to $96.92 after the mobile and media devices maker reported net sales in the first-quarter ending on December 26 rose 1.7% from a year ago to $75.9 billion.

Net income in the quarter jumped 2.2% to $18.4 billion or $3.28 per diluted share compared to $18 billion or $3.06 per share from the same quarter last year.

Apple forecasted revenues in the second-quarter between $50 billion and $53 billion and gross margin in the range of 39% to 39.5% while operating expenses between $6 billion and $6.1 billion.

AT&T Inc (T) fell 25 cents to $35.18 after the communications services provider said revenues in the fourth-quarter ending in December surged 22.3% from a year ago to $42.1 billion.

Net in the quarter swung to profit $4.01 billion or 65 cents per diluted share compared to a loss of $4 billion or 77 cents per share from the same quarter last year.

The connectivity provider said revenues in the quarter in Business Solutions segment dropped 2.7% to $18.2 billion while in Entertainment Group segment surged 132% to $12.99 billion and in Consumer Mobility declined 8.1% to $8.75 billion.

After acquisition of DIRECTV, U.S. net connections in the quarter increased 214,000 but total video subscribers declined slightly while total IP broadband net connections increased 192,000.

The Boeing Company (BA) plunged 9.8% or $12.58 to $115.38 after the aerospace company reported revenues in the fourth-quarter ending in December declined 4% from a year ago to $23.57 billion.

Net income in the quarter plunged 30% to $1.03 billion or $1.51 per diluted share compared to $1.47 billion or $2.02 per share from the same quarter last year.

The Boeing said commercial aircraft segment reported 182 deliveries for the three-month period, 7% lower than the year ago period and the order backlog for commercial aircrafts at the end of the year increased 1.4% to $432 billion compared to $426 billion at the end of the previous quarter.

Biogen Inc (BIIB) rose 4.7% or $12.17 to $272.04 after the biopharmaceutical company stated total revenues in the fourth-quarter ending in December jumped 7.5% from a year ago to $2.84 billion.

Net income in the quarter slumped 5.9% to $831.6 million or $3.77 per diluted share compared to $883.5 million or $3.74 per share from the same quarter last year.

Biogen forecasted revenues in the year in the range of $11.1 to $11.3 billion and diluted earnings per share between $16.85 and $17.15.

General Dynamics Corporation (GD) dropped 3.5% or $4.47 to $122.87 after the aerospace and defense products maker reported revenues in the fourth-quarter ending in December declined 6.6% from a year ago to $7.81 billion.

Net income in the quarter soared 9% to $764 million or $2.40 per diluted share compared to $701 million or $2.09 per share from the same quarter last year.

Illinois Tool Works Inc (ITW) increased 2.1% or $1.79 to $86.10 after the industrial conglomerate stated revenues in the fourth-quarter ending in December slipped 6.5% from a year ago to $3.28 billion.

Net income in the quarter was flat at $450 million compared to the same quarter last year and diluted earnings per share rose to $1.23 from $1.16 in the same period a year ago.

Parker-Hannifin Corp (PH) slid 5 cents to $91.72 after the industrial equipment maker said sales in the second-quarter ending in December plunged 14% from a year ago to $2.71 billion.

Net income in the quarter tumbled 31.5% to $183 million or $1.33 per diluted share compared to $267.3 million or $1.80 per share from the same quarter last year.

For the fiscal year ending in June 30, 2016, the company estimated earnings per share between $5.40 and $5.80.

Rockwell Automation (ROK) decreased 1.3% or $1.18 to $93.29 after the industrial automation power stated revenues in the fourth-quarter ending in December slumped 9.4% from a year ago to $1.43 billion.

Net income in the quarter plummeted 13.4% to $185.5 million or $1.40 per diluted share compared to $214.2 million or $1.56 per share from the same quarter last year.

United Technologies Corporation (UTX) fell 69 cents to $85 after the aerospace and defense products maker reported net sales in the fourth-quarter ending in December dropped 4.5% from a year ago to $17.8 billion.

Net income in the quarter surged 123% to $3.28 billion or $4.16 per diluted share compared to $1.47 billion or 22 cents per share from the same quarter last year.

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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