BlackBerry Wins Qualcomm Royalty Dispute, Delta Air Net Plunges

Mukesh Buch
12 Apr, 2017
New York City

BlackBerry surged after it won an arbitration ruling of $815 million in a royalty dispute with Qualcomm. ClubCorp net loss narrowed. Cardinal Financial net fell. Delta Air profit declined. Fastenal net and revenues jumped on higher unit sales. Healthcare Services net soared. Shaw net plunged.

[R]12:20 PM New York – BlackBerry surged after it won an arbitration ruling of $815 million in a royalty dispute with Qualcomm. ClubCorp net loss narrowed. Cardinal Financial net fell. Delta Air profit declined. Fastenal net and revenues jumped on higher unit sales. Healthcare Services net soared. Shaw net plunged.[/R]

Tollbooth Index fell 18 or 0.2% to 11,558.94.

Earnings Review

BlackBerry Ltd ((BBRY)) surged 15.8% or $1.22 to $8.91 after the mobile communications services provider was awarded $814.9 million in a binding arbitration dispute of royalty overpayments with chipmaker Qualcomm.

Both companies entered arbitration in April 2016 after BlackBerry said it had overpaid royalties between 2010 and 2015 as a part of a licensing agreement on sales of handsets.

ClubCorp Holdings Inc ((MYCC)) plunged 12.6% or $1.95 to $13.50 after the leisure and entertainment services provider said revenues in the first-quarter ending on March 21 advanced 3% from a year ago to $221.3 million.

Net loss in the quarter narrowed to $7.5 million or 12 cents per diluted share from $8.4 million or 13 cents in the same quarter last year.

The golf and country clubs services provider reaffirmed revenue in the range of $1.09 billion to $1.14 billion, and operating profit between $255 million and $265 million.

Cardinal Financial Corporation ((CFNL)) slumped 1.9% or 55 cents to $28.35 after the financial services provider stated net interest income in the first-quarter ending in March rose 1.9% from a year ago to $31 million.

Net income in the quarter dropped 5.3% to $12.4 million or 36 cents per diluted share from $13.1 million or 39 cents in the same quarter last year.

Delta Air Lines, Inc ((DAL)) jumped 3.1% or $1.40 to $46.69 after the airline operator reported total revenues in the first-quarter ending in March fell 1.1% from a year ago to $9.1 billion.

Net income in the quarter declined 36% to $603 million or 82 cents per diluted share from $946 million or $1.21 in the same quarter last year.

Delta estimated April storm will reduce its pre-tax profit in second-quarter by $125 million after the airline was forced to cancel 4,000 flights due to bad weather and the operational recovery.

Fastenal Company ((FAST)) declined 6.6% or $3.32 to $47.02 after the industrial and construction products provider said net sales in the first-quarter ending in March jumped 6.2% from a year ago to $1.05 billion.

Net income in the quarter soared 6.3% to $134.2 million or 46 cents per diluted share from $126.2 million or 44 cents in the same quarter last year.

Fastenal said increase in net sales was driven primarily by higher unit sales.

Healthcare Services Group, Inc ((HCSG)) surged 8.5% or $3.60 to $45.78 after the cleaning and dietary service provider reported total revenues in the first-quarter ending in March advanced 5% from a year ago to $404.5 million.

Net income in the quarter jumped 18.3% to $22 million or 30 cents per diluted share from $18.6 million or 26 cents in the same quarter last year.

The cleaning service provider said it had signed new service agreements with expected annualized revenues of over $160 million and contracts are scheduled to begin in the second quarter of 2017.

NuStar Energy LP ((NS)) tumbled 7.5% or $3.87 to $47.62 after the petroleum pipeline services provider agreed to acquire midstream operator Navigator Energy Services LLC for $1.48 billion and expand its network into one of the most prolific energy area Permian basin.

The transaction is expected to close in the next month.

Shaw Communications Inc ((SJR)) advanced 4.5% or 92 cents to $21.54 after Canada-based diversified connectivity provider said revenues in the second-quarter ending in February soared 13.3% from a year ago to $1.3 billion.

Net income in the quarter plunged 10.4% to $147 million or 30 cents per diluted share from $164 million or 32 cents in the same quarter last year.

In the quarter, Shaw lost 5,000 customers in its cable, satellite, Internet and telephone divisions but well below the estimated loss of about 30,000.

The wireless services provider said in the quarter there were significant improvements in wireless postpaid and prepaid new subscribers, adding over 33,000.

Chief executive officer Alek Krstajic of its wireless unit Freedom Mobile stepped down and he will be replaced by chief operating offering Paul McAleese.