Apple Net Falls 19%, Boeing Profit Surges 34%

Mukesh Buch
26 Oct, 2016
New York City

Apple Inc said its quarterly net income and revenues tumbled after iPhone, iPad and Mac computer sales declined. Boeing net surged 34% and the aerospace and defense contractor lifted full-year forecast. Comcast revenues soared 14%. Coca-Cola profit plummeted. General Dynamics net declined 7%.

[R]2:10 PM New York – Apple Inc said its quarterly net income and revenues tumbled after iPhone, iPad and Mac computer sales declined. Boeing net surged 34% and the aerospace and defense contractor lifted full-year forecast. Comcast revenues soared 14%. Coca-Cola profit plummeted. General Dynamics net declined 7%.[/R]

Tollbooth Index slipped 52.60 or 0.5% to 10,868.70.

Earnings Review

Apple Inc ((AAPL)) slumped 2.8% or $3.31 to $114.95 after the mobile and media devices maker reported revenues in the fourth-quarter ending in September plunged 9% from a year ago to $46.9 billion.

Net income in the quarter tumbled 19% to $9 billion or $1.67 per diluted share compared to the $11.1 billion or $1.96 per share from the same quarter last year.

Decline in revenues is mainly due to drop in iPhone sales to 45.5 million units from 48.1 million units and iPad sales to 9.3 million units from 9.9 million units while sales in Mac brand declined to 4.9 million units from 5.7 million units in a year ago period.

Revenues in China plummeted 29.8% to $8.79 billion and revenues in Mac business slumped 16.6% to $5.74 billion.

Boeing Co ((BA)) jumped 3.1% or $4.31 to $143.39 after the aerospace products maker said revenues in the third-quarter ending in September declined 8% from a year ago to $23.9 billion.

Net income in the quarter surged 34% to $2.3 billion or $3.60 per diluted share compared to the $1.7 billion or $2.47 per share from the same quarter last year.

The aerospace products maker lifted revenues forecast by $500 million to between $93.5 and $95.5 billion on higher commercial deliveries and earnings per share in the range of $7.10 to $7.30 from the earlier estimated range between $6.40 and $6.60.

Boeing reaffirmed its annual operating cash flow target of $10 billion or more in this year and operating cash flow reported in this quarter soared 12% to $3.2 billion.

""In the quarter, Boeing made solid operating performance across the commercial, defense and space businesses and generated strong cash flow,"" chief executive officer Dennis Muilenburg said.

Comcast Corporation ((CMCSA)) dropped 2.5% or $1.62 to $62.90 after the media and broadcasting services provider reported revenues in the third-quarter ending in September soared 14.2% from a year ago to $18.7 billion.

Net income in the quarter plunged 9.1% to $2 billion or 80 cents per diluted share compared to the $2.2 billion or 92 cents per share from the same quarter last year.

Comcast said NBCUniversal saw strong growth mainly due to Rio Olympics.

The video, internet and voice services provider said cable communications revenues jumped 6.9% and business services revenue soared 15.5% after improvement in customer relationships by 60,000 to 216,000.

Video Customers increased by 32,000, the best third-quarter result in 10 years and high-speed internet customers increased 330,000, the record third-quarter result in 7 years.

The Coca-Cola Co ((KO)) rose 16 cents to $42.70 after the non-alcoholic beverage maker said net revenues in the third-quarter ending in September declined 7% from a year ago to $10.6 billion.

Net income in the quarter plummeted 28% to $1 billion or 24 cents per diluted share compared to the $1.4 billion or 33 cents per share from the same quarter last year.

Coca-Cola plans to refranchise all its North American territories by the end of 2017 and today made six new franchising agreements with bottlers.

General Dynamics Corporation ((GD)) fell 36 cents to $152.23 after the aerospace and defense group said revenues in the third-quarter ending in September slipped 3.3% from a year ago to $7.7 billion.

Net income in the quarter declined 6.8% to $683 million or $2.21 per diluted share compared to the $733 million or $2.28 per share from the same quarter last year.

Whirlpool Corporation ((WHR)) slumped 1.6% or $2.45 to $149.64 after the home appliances maker reported net sales in third-quarter ending in September slid 0.5% from a year ago to $5.2 billion.

Net income in the quarter rose 1.2% to $238 million or $3.10 per diluted share compared to the $235 million or $2.95 per share from the same quarter last year.