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Market Update

Boeing Reaffirms Plane Delivery Target, Pepsi Benefits from Price Hike


Author: Mukesh Buch
ticker.com
Last Update: 9:41 PM ET April 26 2017

2:10 PM New York AT&T revenue falls on record-low wireless equipment sales. Boeing reaffirmed forecast on commercial airplane deliveries. Hess net loss narrowed. PepsiCo profit surged. P&G profit falls on stronger dollar. Rockwell lifted fiscal year outlook.

Tollbooth Index gained 25.16 or 0.2% to 11,997.30.

Earnings Review

AT&T Inc (T) rose 26 cents to $40.18 after the communications and digital entertainment services provider reported revenues in the first-quarter ending in March fell 2.9% from a year ago to $39.4 billion.

Net income in the quarter declined 8.8% to $3.5 billion or 56 cents per diluted share from $3.8 billion or 61 cents in the same quarter last year.

In the quarter, the wireless carrier lost net 348,000 postpaid subscribers despite offering new promotions on unlimited data plans to all wireless customers and the carrier also lost 233,000 video customers.

However, AT&T added net 282,000 prepaid customers and also added net 115,000 home internet customers.

Boeing Co (BA) dropped 1.1% or $1.92 to $181.59 after the aircraft maker and defense contractor reported revenues in the first-quarter ending in March plunged 7% from a year ago to $20.98 billion.

Net income in the quarter surged 19% to $1.5 billion or $2.34 per diluted share from $1.2 billion or $1.83 in the same quarter last year.

Boeing said as of March 31, backlog grew to $480 billion from $473 billion at the beginning of the quarter, including $27 billion of net orders during the quarter.

The commercial aircraft deliveries fell to 169 from 176 but the company is still expected to deliver 760 to 765 commercial aircrafts in 2017.

Hess Corp (HES) jumped 4.4% or $2.16 to $50.75 after the oil and gas explorer said revenues in the first-quarter ending in March soared 30.9% from a year ago to $1.3 billion.

Net loss in the quarter narrowed to $324 million or $1.07 per diluted share from $509 million or $1.72 in the same quarter last year.

General Dynamics Corporation (GD) gained $1.84 to $195.08 after the aerospace and defense products maker reported revenues in the first-quarter ending in March slid 0.5% from a year ago to $7.4 billion.

Net income in the quarter jumped 19% to $763 million or $2.48 per diluted share from $641 million or $2.04 in the same quarter last year.

""We are on track for a productive 2017 as we continue our focus on operational improvement and successful execution on our robust backlog,"" said chairman and chief executive officer Phebe N. Novakovic.

PepsiCo, Inc (PEP) fell 75 cents to $113.41 after the food and beverages maker reported revenues in the first-quarter ending in March rose 2% from a year ago to $12 billion.

Net income in the quarter surged 41% to $1.3 billion or 91 cents per diluted share from $931 million or 64 cents in the same quarter last year.

The beverages maker said net revenue is expected to grow by approximately 2 percentage points and estimated core earnings per share of about $5.09.

Procter & Gamble Co (PG) slumped 1.8% or $1.65 to $88.36 after the consumer packaged goods maker said net sales in the third-quarter ending in March fell 1% from a year ago to $15.6 billion.

Net income in the quarter declined 8% to $2.5 billion or 93 cents per diluted share from $2.8 billion or 97 cents in the same quarter last year.

Rockwell Automation, Inc (ROK) slid 4 cents to $160.10 after the industrial automation power, control and information technology provider reported sales in the second-quarter ending in March jumped 7.9% from a year ago to $1.6 billion.

Net income in the quarter soared 12.8% to $189.5 million or $1.45 per diluted share from $168 million or $1.28 in the same quarter last year.

Rockwell lifted full-year organic sales growth estimate to between 4.5% and 7.5% from the earlier estimated range of 1% to 5% and earnings per share in the range of $6.45 to $6.75 per share, from previously forecasted range of $5.95 to $6.35.

United Technologies Corporation (UTX) increased 1.8% or $2.13 to $119 after the aerospace and defense products maker reported revenues in the first-quarter ending in March rose 3% from a year ago to $13.8 billion.

Net income in the quarter surged 18% to $1.4 billion or $1.73 per diluted share from $1.2 billion or $1.42 in 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