GM Raises Dividend and Profit Outlook; CSX, Supervalu Decline

Mukesh Buch
13 Jan, 2016
New York City

CSX said net and revenues declined. GM lifted earnings forecast and raised dividend by 6% and approved share buyback of $4 billion. Intuitive Surgical forecasted revenues to soar 12%. Progress Software net swung to a loss. Supervalu profit plunged 57%.

GM Raise Dividend and Profit Outlook; CSX, Supervalu Decline
U.S. Movers: CSX, GM, Intuitive Surgical, Progress Software, Supervalu

[R]10:45 AM New York – CSX said net and revenues declined. GM lifted earnings forecast and raised dividend by 6% and approved share buyback of $4 billion. Intuitive Surgical forecasted revenues to soar 12%. Progress Software net swung to a loss. Supervalu profit plunged 57%.[/R]

Tollbooth Index slipped 29.53 or 0.3% to 10,279.76.

Earnings Review

CSX Corporation ((CSX)) declined 4% or 98 cents to $22.71 after the rail services provider reported revenues in the fourth-quarter ending in November plummeted 13% from a year ago to $2.78 billion.

Net income in the quarter declined 5% to $466 million or 48 cents per diluted share compared to $491 million or 49 cents per share from the same quarter last year.

Coty Inc ((COTY)) dropped 2.5% or 59 cents to $22.56 after the beauty products maker confirmed that ten Procter & Gamble fragrance licenses will transfer to Coty upon regulatory approval and completion of the merger transaction.

Coty said the transaction is expected to close in the second-half of the year.

General Motors Company ((GM)) jumped 2.9% or 87 cents to $31.16 after the automaker lifted adjusted earnings per share forecast for the fiscal 2016 between $5.25 and $5.75, up from previous guidance of $5 to $5.50.

The company increased its regular quarterly dividend of 38 cents per share from the first quarter and also agreed for share buybacks of as much as $4 billion through 2017.

Intuitive Surgical, Inc ((ISRG)) advanced 3.9% or $20.86 to $562.98 after the surgical equipment maker forecasted revenue in the fourth-quarter to jump 12% to $677 million from a year ago period.

The company is scheduled to release its fourth-quarter result on January 21.

Nobilis Health Corp ((HLTH)) surged 25% or 60 cents to $3 after the ambulatory surgery centres operator said revenues in the fourth-quarter ending in September advanced 205% from a year ago to $52.5 million.

Net income in the quarter soared to $10.9 million or 14 cents per diluted share compared to $1.2 million or 3 cents per share from the same quarter last year.

Progress Software Corporation ((PRGS)) increased 2.3% or 53 cents to $23.13 after the software company stated revenues in the fourth-quarter ending in November soared 15% from a year ago to $112.7 million.

Net in the quarter swung to a loss of $9.5 million or 19 cents per diluted share compared to profit of $14.5 million or 28 cents per share from the same quarter last year.

Supervalu Inc ((SVU)) tumbled 11.9% pt 72 cents to $5.30 the grocery wholesaler and retailer said revenues in the third-quarter ending in November slipped 2.8% from a year ago to $4.11 billion.

Net income in the quarter plunged 57% to $34 million or 13 cents per diluted share compared to $79 million or 30 cents per share from the same quarter last year.