Intel to Cut 12,000 Jobs; Abbott, Coca-Cola Profit Decline

Mukesh Buch
20 Apr, 2016
New York City

Abbott net tumbled 86% but lifted earnings per share forecast. DISH Network net surged 11%. EMC net jumped 6%. Illinois Tool net rose 2% but revenues fell 2%. Intel announced a wide-range restructuring program. Coca-Cola net fell. Yahoo! net swung to a loss.

[R]2:00 PM New York – Abbott net tumbled 86% but lifted earnings per share forecast. DISH Network net surged 11%. EMC net jumped 6%. Illinois Tool net rose 2% but revenues fell 2%. Intel announced a wide-range restructuring program. Coca-Cola net fell. Yahoo! net swung to a loss.[/R]

Tollbooth Index rose 30.11 or 0.3% to 10,911.35.

Earnings Review

Abbott Laboratories ((ABT)) slid 3 cents to $43.82 after the health care products maker reported revenues in the first-quarter ending in March fell 0.2% from a year ago to $4.9 billion.

Net income in the quarter tumbled 86.2% to $316 million or 21 cents per diluted share compared to $2.29 billion or $1.51 per share from the same quarter last year.

Abbott lifted diluted earnings per share estimate for 2016 in the range of $2.14 to $2.24 from the earlier estimated range between $2.10 and $2.20.

ABB Ltd ((ABB)) jumped 3.1% or 62 cents to $20.88 after the Switzerland-based power and automation technology provider said revenues in the first-quarter ending in March dropped 2% from a year ago to $7.90 billion.

Net income in the quarter plunged 11.3% to $500 million or 23 cents per diluted share compared to $564 million or 25 cents per share from the same quarter last year.

DISH Network Corporation ((DISH)) gained 3.1% or $1.46 to $48.78 after the cable network services provider stated revenues in the first-quarter ending in March rose 1.9% from a year ago to $3.79 billion.

Net income in the quarter jumped 10.8% to $389 million or 84 cents per diluted share compared to $351 million or 76 cents per share from the same quarter last year.

In the quarter, DISH activated approx 657,000 gross new Pay-TV subscribers, 9.1% decline from a year ago period and Net Pay-TV subscribers dropped about 23,000 from 35,000 decline in the first-quarter 2015.

EMC Corporation ((EMC)) rose 2.9% or 75 cents to $26.30 after the information technology service provider reported revenues in the first-quarter ending in March slid 2% from a year ago to $5.48 billion.

Net income in the quarter jumped 6.3% to $268 million or 14 cents per diluted share compared to $252 million or 13 cents per share from the same quarter last year.

Illinois Tool Works Inc ((ITW)) slipped 1.7% or $1.77 to $103.90 after the industrial products and equipment maker said revenues in the first-quarter ending in March fell 2.1% from a year ago to $3.27 billion.

Net income in the quarter rose 2.2% to $468 million or $1.29 per diluted share compared to $458 million or $1.21 per share from the same quarter last year.

In the second-quarter, industrial conglomerate lifted GAAP earnings per share estimate between $1.34 and $1.44, an increase of 7% at the mid-point.

The company lifted GAAP earnings per share full-year forecast in the range of $5.40 to $5.60, a 7% increase at the mid-point from the previous estimate.

Intel Corporation ((INTC)) rose 1.3% or 42 cents to $32.03 after the technology company said revenues in the first-quarter ending in March soared 7% from a year ago to $13.7 billion.

Net income in the quarter jumped 3% to $2.05 billion or 42 cents per diluted share compared to $1.99 billion or 41 cents per share from the same quarter last year.

The company announced a wide-ranging restructuring program and said it plans to reduce its payroll by 12,000 employees.

The Coca-Cola Co ((KO)) declined 4.4% or $2.07 to $44.52 after the non-alcoholic beverages maker said revenues in the first-quarter ending on April 1 slumped 4% from a year ago to $10.28 billion.

Net income in the quarter plummeted 5% to $1.48 billion or 34 cents per diluted share compared to $1.56 billion or 35 cents per share from the same quarter last year.

Yahoo! Inc ((YHOO)) advanced 3.3% or $1.20 to $37.53 after the internet content provider said revenues in the first-quarter ending in March plunged 11% from a year ago to $1.09 billion.

Net in the quarter swung to a loss of $99.2 million or 10 cents per diluted share compared to profit of $21.2 million or 2 cents per share from the same quarter last year.

Yahoo! said revenues in its key businesses sharply declined and Chief Executive Marissa Mayer said that the company """"made substantial progress towards potential strategic alternatives.""""

The Internet content aggregator has been looking to sell its key business units.