Facebook Offers Cautious Outlook, Itron Surges, Fitbit, TreeHouse Tumble

Mukesh Buch
03 Nov, 2016
New York City

Apache net loss narrowed. Becton Dickinson net tumbled 90% but medical devices maker lifted earnings forecast. Cigna profit plunged 17%. Facebook offered cautious outlook. Fitbit, TreeHouse Foods tumbled on weak forecast.

[R]1:10 PM New York – Apache net loss narrowed. Becton Dickinson net tumbled 90% but medical devices maker lifted earnings forecast. Cigna profit plunged 17%. Facebook offered cautious outlook. Fitbit, TreeHouse Foods tumbled on weak forecast.[/R]

Tollbooth Index decreased 18.06 or 0.2% to 10,630.65.

Earnings Review

Apache Corporation ((APA)) declined 4.3% or $2.53 to $56.97 after the oil and gas explorer said revenues in the third-quarter ending in September declined 6.7% from a year ago to $1.4 billion.

Net loss in the quarter narrowed to $607 million or $1.60 per diluted share compared to $4.1 billion or $10.95 per share loss in the same quarter last year.

Apache reported global production of 520,000 barrels of oil equivalent and adjusted production of 438,000 barrels of oil equivalent per day.

As of September end, Apache’s long-term debt remained unchanged at $8.7 billion.

Becton Dickinson and Co ((BDX)) jumped 3.9% or $6.46 to $173.33 after the medical devices maker reported revenues in the fourth-quarter ending in September advanced 5.6% from a year ago to $3.2 billion.

Net income in the quarter tumbled 89.6% to $19 million or 9 cents per diluted share compared to the $181 million or 84 cents per share from the same quarter last year.

The medical technology provider forecasted diluted earnings per share in the year between $7.23 and $7.33, represents growth of 61% to 63% and revenues to increase between 4.5% and 5%.

Cigna Corporation ((CI)) gained 1.9% or $2.19 to $120.04 after the health services provider said total revenues in the third-quarter ending in September jumped 5% from a year ago to $9.9 billion.

Net income in the quarter plunged 16.6% to $456 million or $1.76 per diluted share compared to the $547 million or $2.10 per share from the same quarter last year.

Facebook Inc ((FB)) slumped 4.5% or $5.76 to $121.42 after the social media network operator reported revenues in the third-quarter ending in September surged 55.8% from a year ago to $7.01 billion.

Net income in the quarter soared 166% to $2.4 billion or 82 cents per diluted share compared to the $891 million or 31 cents per share from the same quarter last year.

""""Adding top engineering talent remains one of our key investment priorities” and """"we expect to grow capital expenditures substantially” chief financial officer David Wehner said.

Facebook said advertising revenue in the quarter increased $6.82 billion and monthly active users jumped to 1.79 billion while mobile active users soared more than 1 billion, resulted average revenue per user of about $4.01.

Chief executive officer Mark Zuckerberg said """"We're making progress putting video first across our apps and executing our 10 year technology roadmap"""" and """"Facebook really is the new town hall,"""" he added.

Fitbit Inc ((FIT)) tumbled 30.8% or $3.95 to $8.86 after the health and fitness devices provider forecasted revenue in the December quarter may between $725 million to $750 million, below the market expectations.

""""We continue to grow and are profitable, however, not at the pace previously expected,"""" chief executive officer James Park said.

Fitbit estimated worldwide shipments of wearable devices market in 2016 to jump 29% and more than double by 2020.

Itron, Inc ((ITRI)) surged 13.7% or $7.10 to $58.90 after the technology service provider said revenues in the third-quarter ending in September increased 3.5% from a year ago to $506.9 million.

Net in the quarter swung to a loss of $9.9 million or 26 cents per diluted share compared to the profit of $12.6 million or 33 cents per share from the same quarter last year.

TreeHouse Foods Inc ((THS)) tumbled 17.9% or $15.46 to $71.13 after the consumer packaged food and beverages maker said net sales in the third-quarter ending in September jumped 98.7% from a year ago to $1.6 billion.

Net income in the quarter surged 31% to $37.2 million compared to the $28.4 million and diluted earnings per share was flat at 65 cents from the same quarter last year.

TreeHouse said gross profit jumped 80% to $285.5 million while total operating expenses in the quarter more than double to $207.9 million from $96.5 million in the same period a year ago.

The consumer packaged food maker will close its plant in Delta, British Columbia and reduce jobs in Battle Creek, Michigan facility.

TreeHouse said """"we lowered full-year earnings expectations due to the combination of lower than expected third quarter sales” hence now it forecasted diluted earnings per share between $1.95 and $2 and adjusted earnings in the range of $2.80 to $2.85.