Boeing Lifts Delivery Target, Hess Lifts Production Spending

Mukesh Buch
25 Jan, 2017
New York City

Abbott net jumped 4%. Alcoa said it expects global aluminum demand to increase 4% in 2017. Boeing said plane deliveries may reach 765 in 2017 surpassing 748 in 2016. Hess reported record quarterly loss. Illinois Tool net soared 13%. Rockwell profit jumped 16%. Grainger net tumbled 21%.

[R]2:10 PM New York – Abbott net jumped 4%. Alcoa said it expects global aluminum demand to increase 4% in 2017. Boeing profit surged 59% and the aviation company forecasted higher operating cash flow. Hess net loss widened. Illinois Tool net soared 13%. Rockwell profit jumped 16%. Grainger net tumbled 21%.[/R]

Tollbooth Index jumped 66.22 or 0.6% to 11,482.36.

Earnings Review

Abbott Laboratories ((ABT)) slipped 1.8% or 72 cents to $39.60 after the healthcare products maker said net sales in the fourth-quarter ending in December rose 2.8% from a year ago to $5.3 billion.

Net income in the quarter jumped 4.2% to $971 million or 53 cents per diluted share compared to the $932 million or 51 cents per share in the same quarter last year.

Abbott forecasted diluted earnings per share in the first-quarter in the range of 19 cents to 21 cents.

In the fiscal 2017, the drug-maker estimated diluted earnings per share between 92 cents and $1.02.

Alcoa Corporation ((AA)) jumped 3.2% or $1.19 to $38.69 after the aluminum producer reported total revenues in the fourth-quarter ending in December advanced 3.4% from a year ago to $2.5 billion.

Net loss in the quarter narrowed to $125 million or 68 cents per diluted share compared to the $826 million or $4.52 per share in the same quarter last year.

Since the launch as an independent company in November 2016, Alcoa had increased its cash position by $198 million and closed the quarter with a cash balance of $853 million.

Alcoa expects global aluminum demand in 2017 to increase by 4%.

The Boeing Company ((BA)) advanced 3.4% or $5.36 to $165.91 after the aerospace group said total revenues in the fourth-quarter ending in December fell 1% from a year ago to $23.3 billion.

Net income in the quarter surged 59% to $1.6 billion or $2.59 per diluted share compared to the $1.03 billion or $1.51 per share in the same quarter last year.

Boeing forecasted operating cash flow in 2017 expected to increase $10.75 billion and diluted earnings per share $10.25 and $10.45 and order backlog of about $500 billion and will deliver commercial aircrafts between 760 and 765 in 2017.

Cisco Systems Inc rose 19 cents to $30.80 after the networking equipment maker agreed to buy software dveloper AppDynamics Inc for $3.7 billion.

The transaction is expected to close in April.

Hess Corporation ((HES)) gained 47 cents to $57.99 after the oil and gas producer stated total revenues in the fourth-quarter ending in December were flat from a year ago at $1.39 billion.

Net loss in the quarter widened to $4.9 billion or $15.65 per diluted share compared to the $1.8 billion or $6.43 per share in the same quarter last year.

Illinois Tool Works Inc ((ITW)) slid 1% or $1.29 to $125.82 after the industrial products and equipment maker reported total revenues in the fourth-quarter ending in December increased 4% from a year ago to $3.4 billion.

Net income in the quarter soared 12.7% to $507 million or $1.45 per diluted share compared to the $450 million or $1.23 per share in the same quarter last year.

In the first quarter, the industrial products maker forecasted diluted earnings per share in the range of $1.39 to $1.49.

ITW reaffirmed full-year diluted earnings per share estimate in the range of $6 to $6.20 and operating margin to exceed 23.5%.

Rockwell Automation ((ROK)) soared 7.1% or $10.07 to $152.10 after the industrial automation equipment maker said net sales in the first-quarter ending in December advanced 4% from a year ago to $1.5 billion.

Net income in the quarter jumped 15.7% to $214.7 million or $1.65 per diluted share compared to the $185.5 million or $1.40 per share in the same quarter last year.

Rockwell lifted diluted earnings per share estimate in fiscal 2017 to between $5.95 and $6.35 per share from the earlier forecasted range between $5.85 and $6.25.

Sales growth was revised higher to a range of 1% to 5% from flat to 4%.

W W Grainger Inc ((GWW)) jumped 3.9% or $9.58 to $258.67 after the industrial products distributor reported sales in the fourth-quarter ending in December rose 2% from a year ago to $10.1 billion.

Net income in the quarter tumbled 21.2% to $606 million or $9.87 per diluted share compared to the $769 million or $11.58 per share in the same quarter last year.

“We still believe Fabory Group can deliver profitable growth for Grainger going forward,"" chief executive officer DG Macpherson said.

Grainger acquired Fabory Group, a distributor of fasteners in Europe in 2011.