Twitter Plunges As Growth Stalls, Coca Cola Results Lack Fizz

Mukesh Buch
09 Feb, 2017
New York City

Boeing secured 39 wide-body airplanes from Singapore Airlines. Cummins net surged. CVS Health net jumped 14%. Coca-Cola profit tumbled 56%. DTE Energy net soared 64%. Kellogg net advanced 16%. Reuters net surged on sell of IP & Science business unit. Twitter net loss widened.

[R]2:10 PM New York – Boeing secured 39 wide-body airplanes from Singapore Airlines. Cummins net surged. CVS Health net jumped 14%. Coca-Cola profit tumbled 56%. DTE Energy net soared 64%. Kellogg net advanced 16%. Reuters net surged on sell of IP & Science business unit. Twitter net loss widened.[/R]

Tollbooth Index increased 76.67 or 0.7% to 11,501.56.

Earnings Review

The Boeing Company ((BA)) gained 38 cents to $164.19 after the aerospace group said Singapore Airlines Ltd has announced to buy 20 777-9s and 19 787-10 Dreamliners.

The aircraft deal is worth based on the list price about $13.8 billion.

""Today''s major order for wide-body aircraft enables us to continue operating modern and fuel-efficient fleet with additional expansion opportunities to ensure to retain our industry-leading position,"" chief executive officer Goh Choon Phong said.

Cummins Inc ((CMI)) jumped 3.6% or $5.08 to $150.76 after the diesel engines maker said revenues in the fourth-quarter ending in December dropped 6% from a year ago to $4.5 billion.

Net income in the quarter surged 134.8% to $378 million or $2.25 per diluted share compared to the $161 million or 92 cents per share in the same quarter last year.

Cummins said revenues in North America slumped 13% while international sales improved 6% mainly due to higher revenues in China.

Cummins forecasted full-year revenues may drop as much as 5% and operating profit to fall between 11% and 11.5% of sales.

CVS Health Corp ((CVS)) slipped 1.7% or $1.30 to $75.73 after the retail drugstores operator stated revenues in the fourth-quarter ending in December soared 11.7% from a year ago to $46 billion.

Net income in the quarter jumped 13.8% to $1.7 billion or $1.59 per diluted share compared to the $1.5 billion or $1.34 per share in the same quarter last year.

The drug retailer said in the year, it generated more than $8 billion in free cash and returned more than $6 billion to shareholders through dividend and share repurchases.

The Coca-Cola Co ((KO)) slumped 2.3% or 98 cents to $41.04 after the non-alcoholic beverage maker reported revenues in the fourth-quarter ending in December dropped 6% from a year ago to $9.4 billion.

Net income in the quarter tumbled 56% to $550 million or 13 cents per diluted share compared to the $1.2 billion or 28 cents per share in the same quarter last year.

Coca-Cola said global sales fell 1%, with 4% decline in Latin America but increased 1% in both North America and Europe. Sales of sparkling beverages rose 1% in North America.

""This is a pivotal time of change for our company,"" Coca-Cola''s next chief executive officer James Quincey said in a call with investors.

DTE Energy Co ((DTE)) decreased 1% or $1.03 to $97.66 after the diversified energy group said revenues in the fourth-quarter ending in December advanced 15.3% from a year ago to $2.9 billion.

Net income in the quarter soared 63.7% to $131 million or 73 cents per diluted share compared to the $80 million or 45 cents per share in the same quarter last year.

The energy group reaffirmed earnings per share in 2017 in the range of $5.15 to $5.46.

Kellogg Company ((K)) jumped 3.7% or $2.75 to $76.24 after the ready-to-eat cereal and convenience foods maker reported net sales in the fourth-quarter ending in December fell 1.4% from a year ago to $3.1 billion.

Net income in the quarter advanced 15.6% to $324 million or 92 cents per diluted share compared to the $279 million or 79 cents per share in the same quarter last year.

Kellogg estimated earnings per share in the full-year between $3.91 and $3.97.

Thomson Reuters Corp ((TRI)) declined 3.2% or $1.43 to $43.23 after the news and professional information services provider said revenues in the fourth-quarter ending in December slid 1% from a year ago to $2.9 billion.

Net income in the quarter surged to $2.2 billion or $3.03 per diluted share compared to the $417 million or 53 cents per share in the same quarter last year.

Reuters said higher profit was mainly due to $2 billion gain on the sale of IP & Science business in October 2016. After adjusting for the sale and charges linked to discontinued operations, the company earned 60 cents a share compared to $417 million or 53 cents a share.

""This is another steady quarter of progress,"" chief executive officer Jim Smith said.

Twitter Inc ((TWTR)) plunged 9.7% or $1.81 to $16.91 after the social media platform operator stated revenues in the fourth-quarter ending in December grew 1% from a year ago to $717.2 million.

Net loss in the quarter widened to $167 million or 23 cents per diluted share compared to the $90.2 million or 13 cents per share in the same quarter last year.

Twitter said advertising revenue in the quarter declined 0.5% to $638 million, the lowest quarterly revenue since it went public in 2013.

Yum! Brands, Inc ((YUM)) gained 1.8% or $1.19 to $67.78 after the quick service restaurant operator said revenues in the fourth-quarter ending in December increased 2% from a year ago to $2 billion.

Same store sales in the quarter jumped 3% at KFC and Taco Bell but same-store sales dropped by 2% at Pizza Hut.

Net income in the quarter fell 3% to $267 million or 97 cents per diluted share compared to the $275 million or 67 cents per share in the same quarter last year.

The restaurant operator said it had completed the separation of Yum China Holdings, Inc on October 31, 2016.

""KFC and Taco Bell had relatively strong performance in December, despite difficult U.S. industry conditions,"" chief financial officer David Gibbs said.