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Market Update

Chevron, Exxon to Invest $37 B in Kazakhstan, Walgreens Net Falls


Author: Mukesh Buch
ticker.com
Last Update: 7:18 PM ET July 06 2016

2:00 PM New York Delta Air estimated passenger unit revenue to drop 5%. Chevron and Exxon approved $36.8 billion oil production expansion in Kazakhstan. Greenbrier net declined 17% on 14% drop in revenues. MSC Indl Direct net rose 2%. Walgreens net plunged 15%.

Tollbooth Index fell 28.43 or 0.3% to 10,493.60.

Earnings Review

Delta Air Lines, Inc (DAL) declined 3.7% or $1.32 to $34.30 after the airline company estimated $450 million loss linked to higher jet fuel prices and forecasted passenger unit revenue to drop 5%.

The airline said cargo and other revenues in second-quarter ending in June are expected to be about $1.5 billion and profit sharing expense may be between $315 million and $325 million while non-operating expense in the range of $140 million to $150 million.

Chevron Corporation (CVX) rose 9 cents to $103.68 after the petroleum refiner and Exxon Mobil Corporation approved production expansion in Tengiz of Kazakhstan by 260,000 barrels per day with an estimated cost of about $36.8 billion.

The first oil production is planned to commence by 2022.

Greenbrier Companies Inc (GBX) plunged 7.1% or $2.05 to $26.74 after the railroad and marine vessels equipment maker said total revenues in the third-quarter ending in May declined 14.2% from a year ago to $612.9 million.

Net income in the quarter slumped 17.3% to $35.4 million or $1.12 per diluted share compared to $42.8 million or $1.33 per share from the same quarter last year.

Greenbrier forecasted revenues in the fiscal year 2016 of about $2.8 billion and diluted earnings per share in the range of $5.70 to $5.90 and new railcar deliveries between 20,000 units and 21,000 units.

MSC Industrial Direct Co Inc (MSM) gained 2.1% or $1.46 to $72.26 after the industrial machinery provider reported net sales in the third-quarter ending on May 28 dropped 2.4% from a year ago to $727.5 million.

Net income in the quarter jumped 2.3% to $64.8 million or $1.05 per diluted share compared to $63.3 million or $1.03 per share from the same quarter last year.

The company estimated net sales in the fourth-quarter in the range of $730 million to $742 million and diluted earnings per share between 96 cents and $1.

Walgreens Boots Alliance Inc (WBA) slumped 2.4% or $2.04 to $81.48 after the drugstores operator reported net sales in the third-quarter ending in May rose 2.4% from a year ago to $29.5 billion.

Comparable stores sales in the quarter increased 3.9% and comparable retail sales grew 0.1% while prescriptions filled in comparable stores jumped 4.5%.

Pharmacy sales in the quarter which accounted for 67.4% of the total sales increased 5.8% compared with the year-ago period and comparable pharmacy sales jumped 6%.

Net income in the quarter dropped 15.4% to $1.10 billion or $1.01 per diluted share compared to $1.30 billion or $1.18 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