S&P 500 2,441.20 17.28
Gold$1,224.80 $5.30
Nasdaq 6,253.81 61.92
Crude Oil $60,490.00      $-1570.00
Market Update

Johnson Controls, News Corp, Valeant Pharma Net Swing to Loss


Author: Mukesh Buch
ticker.com
Last Update: 8:50 PM ET November 08 2016

2:10 PM New York CVS Health net surged 24% and revenues soared 16%. D.R. Horton net jumped 19% on 18% increase in revenues. Johnson Controls net swung to a loss on tax expenses related to the Adient spin-off and the Tyco merger. News Corp and Valeant Pharma net swung to a loss.

Tollbooth Index slipped 26.21 or 0.3% to 10,765.24.

Earnings Review

CVS Health Corp (CVS) tumbled 13.9% or $11.57 to $71.82 after the drugs retailer reported net revenues in the fourth-quarter ending in September soared 15.5% from a year ago to $44.6 billion.

Net income in the quarter surged 23.6% to $1.5 billion or $1.43 per diluted share compared to the $1.25 billion or $1.11 per share from the same quarter last year.

CVS Health estimated diluted earnings per share in the fourth-quarter in the range of $1.52 to $1.58.

In the fiscal 2016, the drugs retailer lowered diluted earnings per share forecast between $4.84 and $4.90 from earlier estimated range of $4.92 to $5.

The pharmacy group forecasted diluted earnings per share in fiscal 2017 in the range of $5.16 to $5.33.

D.R. Horton, Inc (DHI) plunged 6.2% or $1.83 to $27.55 after the residential homes developer said revenues in the fourth-quarter ending in September jumped 18% from a year ago to $3.7 billion.

Net income in the quarter soared 19% to $283.6 million or 75 cents per diluted share compared to the $238.9 million or 64 cents per share from the same quarter last year.

Johnson Controls International Plc (JCI) jumped 3.5% or $1.46 to $42.99 after security products and services provider stated net sales in the fourth-quarter ending in September advanced 17.2% from a year ago to $10.2 billion.

Net in the quarter swung to a loss of $1.2 billion or $1.61 per diluted share compared to the profit of $349 million or 53 cents per share from the same quarter last year.

The security products and services provider said net loss in the fourth-quarter was mainly due to tax expense of $1.1 billion primarily related to the Adient spin-off and the Tyco merger was completed on September 2.

News Corp (NWSA) slumped 4.6% or 56 cents to $11.66 after the diversified media and information services provider said total revenues in the third-quarter ending in September fell 2% from a year ago to $1.97 billion.

Net in the quarter swung to a loss of $15 million or 3 cents per diluted share compared to the profit of $175 million or 30 cents per share from the same quarter last year.

The media company said advertising revenue in the quarter declined 8.8% to $670 million and revenue in the circulation and subscription segment slipped 2.8% to $621 million from a year ago period.

Revenue from the book publishing business dropped 4.9% to $389 million.

Toyota Motor Corp (TM) gained 1.7% or $1.92 to $112.48 after the Japan-based automobiles manufacturer said total sales in the second-quarter ending in September declined 9% from a year ago to $62.3 billion and net profit tumbled 36% to $3.8 billion.

Toyota lifted yearly profit forecast of approx $14.4 billion from earlier estimated to about $13.9 billion, but lower than in the same period a year ago.

Valeant Pharmaceuticals Intl Inc (VRX) plummeted 24.1% or $4.61 to $14.52 after Canada-based pharmaceutical and medical device maker said total revenues in the third-quarter ending in September declined 11% from a year ago to $2.5 billion.

Net in the quarter swung to a loss of $1.22 billion or $3.49 per diluted share compared to the profit of $49.5 million or 14 cents per share from the same quarter last year.

Valeant recognized goodwill impairment charge of $1.05 billion due to lower fair value in certain U.S. businesses, mainly in the Salix business.

  1
Sources: Data collected by 123jump.com and Ticker.com from company press releases, filings and corporate websites. Market data: BATS Exchange. Inc