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Market Update

Comcast Plans $5 B Stock Buy Back, Ford Expects Strong Sales in 2017


Author: Mukesh Buch
ticker.com
Last Update: 9:50 PM ET January 26 2017

2:10 PM New York – AT&T net plunged 39%. Biogen net declined 22%. Comcast net soared 15% and media group plans to buy back shares worth up to $5 billion in the next 12 months. Caterpillar net loss widened. Ford net plunged 38%. Qualcomm net slumped 54%. Whirlpool plunged on flat net.

Tollbooth Index decreased 25.09 or 0.2% to 11,481.34.

Earnings Review

AT&T Inc (T) rose 8 cents to $41.47 after the communication services provider reported total revenues in the fourth-quarter ending in December slid 0.7% from a year ago to $41.8 billion.

Net income in the quarter plunged 39.2% to $2.4 billion or 39 cents per diluted share compared to the $4 billion or 65 cents per share in the same quarter last year.

In the quarter, the wireless carrier added a total of 250,000 postpaid subscribers and also sold 1.1 million smart-phones to its subscriber while DIRECTV added 235,000 subscribers with stable linear TV subscribers.

AT&T forecasted revenue in the year to increase in low-single digits range and adjusted earnings to grow in the mid-single digit.

Comcast Corporation (CMCSA) jumped 3.3% or $2.47 to $75.91 after the media and broadcasting services provider said total revenues in the fourth-quarter ending in December advanced 9.2% from a year ago to $21 billion.

Net income in the quarter soared 15% to $2.3 billion or 95 cents per diluted share compared to the $2 billion or 79 cents per share in the same quarter last year.

The cable operator’s video customers fell 80,000 compared to 89,000 loss in prior-year quarter and broadband customers declined 385,000 compared to 460,000 and voice customer dropped 44,000 compared to 139,000 loss in the year earlier.

Comcast increased its dividend by 15% and also said it plans to buy back stocks worth about $5 billion this year.

Biogen Inc (BIIB) rose 2.9% or $8.07 to $281.31 after the biopharmaceutical group reported total revenues in the fourth-quarter ending in December rose 1% from a year ago to $2.3 billion.

Net income in the quarter declined 22% to $649 million or $2.99 per diluted share compared to the $832 million or $3.77 per share in the same quarter last year.

Caterpillar Inc (CAT) rose 17 cents to $98.32 after the construction and mining equipment manufacturer stated revenues in the fourth-quarter ending in December plummeted 12.7% from a year ago to $9.6 billion.

Net loss in the quarter widened to $1.2 billion or $2 per diluted share compared to the $94 million or 16 cents per share in the same quarter last year.

Caterpillar estimated revenues in 2017 in the range of $36 billion to $39 billion with a midpoint of $37.5 billion and earnings per share of about $2.30.

Ford Motor Company (F) dropped 2.9% or 36 cents to $12.43 after the automobile maker said total revenues in the fourth-quarter ending in December decreased 4% from a year ago to $38.7 billion.

In the quarter net swung to a loss of $783 million or 20 cents per diluted share compared to the $1.9 billion or $1.84 per share in the same quarter last year.

For the year 2016 revenues increased $2.2 billion to $151.8 billion and net income of $4.6 billion, largely because of $2 billion hit related to pension obligation calculation.

Ford also said its adjusted non-GAAP pre-tax income was $10.6 billion in the year, ahead of its previous estimate and only trailing the record year in 2000.

Ford also announced that its 56,000 hourly union workers in the U.S. will get about $9,000 from profit sharing.

For the year 2016, revenues in North America increased $700 million to $96.2 billion and the unit operated with adjusted pre-tax profit margin of 8.5%, an increase from 8.2%.

The company reported record results in European operations with pre-tax earnings of $1.2 billion, an increase from $946 million in 2015. The Asia Pacific region generated adjusted pre-tax income of $627 million, decline of $138 million in 2015.

Ford Credit adjusted pre-tax profit in 2016 declined $208 million from 2015 to $1.82 billion.

In one of the most confusing earnings release reported by the automaker, CEO Mark Fields said the company expects a strong 2017 but also cautioned that the net income is likely to decline slightly as the company makes investments in emerging operations. .

Johnson & Johnson (JNJ) slipped 64 cents to $112.15 after the healthcare products maker agreed to acquire Switzerland-based biopharmaceutical group for about $30 billion in cash.

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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