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Market Update

Snap Seek $22 B IPO Valuation; Verizon, Yahoo Settle on Renegotiated Deal


Author: Mukesh Buch
ticker.com
Last Update: 11:40 AM ET February 16 2017

11:40 AM New York Avon plunged 16% after revenues declined 2%. Duke Energy net swung to a loss. Dean Foods plummeted 8%. Hyatt net jumped 11%. Laboratory Corp net soared 68%. Marriott net surged 21%. Verizon and Yahoo are nearing a deal at a lower price.

Tollbooth Index slid 12.35 to 11,669.84.

Earnings Review

Avon Products, Inc (AVP) plunged 16% or 94 cents to $4.92 after the beauty products maker said revenues in the fourth-quarter ending in December fell 2% from a year ago to $1.6 billion.

Net loss in the quarter narrowed to $10.7 million or 4 cents per diluted share compared to $333.4 million or 76 cents per share in the same quarter last year.

The beauty products maker said revenues declined 7% in the Europe, Middle East and Africa region and dropped 10% in the north Latin America but were offset by 9% increase in revenue in south Latin America.

Duke Energy Corp (DUK) gained 1.1% or 82 cents to $77.60 after the electric and gas services provider reported revenues in the fourth-quarter ending in December rose 1.8% from a year ago to $4.94 billion.

Net in the quarter swung to a loss of $227 million or 33 cents per diluted share compared to profit of $477 million or 69 cents per share in the same quarter last year.

Duke said weak result was due to higher operating and maintenance costs and higher effective tax rate. The results also included the acquisition of Piedmont and the sale of International Energy during the fourth-quarter of 2016.

In fiscal year 2017, the utility provider forecasted earnings per share between $4.50 and $4.70.

Dean Foods Co (DF) plummeted 8.1% or $1.65 to $18.81 after the food and beverage products maker stated revenues in the fourth-quarter ending in December were flat from a year ago at $2.02 billion.

Net income in the quarter surged 77.3% to $32.8 million or 36 cents per diluted share compared to $18.5 million or 20 cents per share in the same quarter last year.

In the first-quarter, the food and beverage products maker estimated earnings per share in the range of 12 cents to 20 cents.

In the year, Dean Foods forecasted earnings per share between $1.35 and $1.55 and estimated dairy prices to increase 20% in the year.

Hyatt Hotels Corporation (H) rose 39 cents to $57.35 after the hotel properties developer and manager said sales in the fourth-quarter ending in December fell 1.8% from a year ago to $1.09 billion.

Net income in the quarter jumped 10.8% to $41 million or 31 cents per diluted share compared to profit of $37 million or 26 cents per share in the same quarter last year.

Hyatt said comparable system-wide revenue per available room in the quarter increased 2%, including 0.3% decline at comparable owned and leased hotels but increased 2.4% at comparable U.S. hotel.

Laboratory Corp. of America Holding (LH) increased 1.5% or $2.11 to $138.48 after the healthcare diagnostics services provider reported net revenues in the fourth-quarter ending in December jumped 6.3% from a year ago to $2.4 billion.

Net income in the quarter soared 67.6% to $184.4 million or $1.75 per diluted share compared to $110 million or $1.07 per share in the same quarter last year.

The diagnostics services provider forecasted revenues in the year to jump between 4.5% and 6.5% or about $9.44 billion and growth in earnings per share between 6% and 10% or in the range of $9.35 to $9.75 compared to $8.83 in 2016.

Marriott International Inc (MAR) the international hotel operator said total revenues in the fourth-quarter ending in December jumped 47% from a year ago to $5.5 billion.

Net income in the quarter surged 21% to $244 million or 62 cents per diluted share compared to $202 million or 77 cents per share in the same quarter last year.

Marriott said earnings per share in the quarter decline was driven by an increase in shares outstanding while adjusted earnings rose 20% to 85 cents.

In the year, Marriott and Starwood together added more than 68,000 rooms, including approx 11,000 rooms converted from competitor brands and approx 31,000 rooms in international markets.

The hotel operator forecasted earnings per share in the first-quarter in the range of 87 cents to 91 cents

Snap Inc, the online chatting platform operator is seeking valuation between $16.20 billion and $18.52 billion in its long awaited initial public offer and plans to sell 200 million class A shares to raise as much as $3.2 billion and the offering is expected to be priced between $14 and $16 per share.

Time Inc (TIME) rose 10 cents to $19.10 after the media services provider said total revenues in the fourth-quarter ending in December slid 1% from a year ago to $867 million.

Net income in the quarter surged 229.4% to $56 million or 56 cents per diluted share compared to $17 million or 17 cents per share in the same quarter last year.

The media services provider said digital advertising revenue in the quarter jumped 63% to $166 million while print and other advertising revenues declined 10% to $343 million.

Verizon Communications Inc (VZ) increased 12 cents to $48.20 after the wireless voice, data and video services said that it has purchased privately owned Skyward for undisclosed financial transaction.

Separately, Verizon and Yahoo! Inc are close to a renegotiated deal valuing the company at $4.8 billion, lowered by $250 million after the revelation of security breaches at Yahoo.

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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