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Market Update

Vale SA Net Surge on Commodities Recovery, Tesla Loss Narrows


Author: Mukesh Buch
ticker.com
Last Update: 7:40 AM ET February 23 2017

2:10 PM New York Apache net loss narrowed on flat revenues. Emcor net plunged 20%. Hormel Foods net was flat. Kohl's net declined 15%. Pinnacle Foods lifted earnings outlook. Tesla net loss narrowed. Vale net swung to profit on the recovery in commodities markets.

Tollbooth Index slipped 25.61 or 0.2% to 11,666.98.

Earnings Review

Apache Corporation (APA) declined 4.2% or $2.29 to $52.62 after the oil and gas explorer said revenues in the fourth-quarter ending in December were flat from a year ago at $1.5 billion.

Net loss in the quarter narrowed to $182 million or 48 cents per diluted share compared to $4 billion or $10.62 per share in the same quarter last year.

Apache net loss narrowed largely on the sharp decline in impairment charges to $94 million from $3.1 billion a year ago period.

The oil and gas explorer said as of December-end the company has available liquidity of approximately $5 billion and total debt of $8.5 billion with no debt maturities before 2018 and only $700 million of debt maturing before 2021.

Emcor Group Inc (EME) slumped 5.3% or $3.66 to $64.83 after the electrical and mechanical construction services provider stated revenues in the fourth-quarter ending in December soared 9.7% from a year ago to $1.9 billion.

Net income in the quarter plunged 20.2% to $40.7 million or 3 cents per diluted share compared to $51 million or 1 cent per share in the same quarter last year.

Hormel Foods Corp (HRL) plunged 5.8% or $2.16 to $35.14 after the meat and food products maker stated revenues in the first-quarter ending in December slid 1% from a year ago to $2.3 billion.

Net income in the quarter was flat at $235 million compared to the same quarter last year and diluted earnings per share edged up 44 cents from 43cents in a year ago quarter.

Kohl's Corporation (KSS) slid 1 cent to $41.77 after the department stores operator reported revenues in the fourth-quarter ending in December dropped 2.8% from a year ago to $6.2 billion.

Comparable store sales in the quarter slipped 2.2%.

Net income in the quarter declined 15% to $252 million or $1.44 per diluted share compared to $296 million or $1.58 per share in the same quarter last year.

The retailer forecasted diluted earnings per share in fiscal 2017 between $3.50 and $3.80 and sales to range between 1.3% fall or an increase of 0.7% and comparable sales to drop 2%.

Pinnacle Foods Inc (PF) jumped 4.2% or $2.31 to $56.94 after the branded food products maker said revenues in the fourth-quarter ending in December soared 18.8% from a year ago to $858.5 million.

Net income in the quarter jumped 11.3% to $88.1 million or 74 cents per diluted share compared to $79.2 million or 67 cents per share in the same quarter last year.

The food products maker lifted fiscal 2017 diluted earnings per share estimate in the range of $2.55 to $2.60, 20% increase from a year ago.

Tesla Inc (TSLA) slumped 4.8% or $13.07 to $260.45 after the electric vehicles and energy storage products maker stated total revenues in the fourth-quarter ending in December jumped 70% from a year ago to $1.7 billion.

Net loss in the quarter narrowed to $121.3 million or 78 cents per diluted share compared to $320.4 million or $2.44 per share in the same quarter last year.

Vale SA (VALE) gained 1.6% or 18 cents to $11.44 after the Brazil-focused metals and mining producer said revenues in the fourth-quarter ending in December surged 64.2% from a year ago to $9.7 billion.

Net in the quarter swung to profit $525 million or 53 cents per diluted share compared to a loss of $8.6 billion or 20 cents per share in the same quarter last year.

Vale said impairment charges related to the sale of fertilizer unit to Mosaic Co for $2.5 billion are going to be significantly less than $4.9 billion in 2015.

""With strong production and the recovery in prices we had a strong quarter and finish the year strongly,"" chief financial officer Luciano Siani said.

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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