EU Issues Record Fine On Alphabet, Darden Jumps on Outlook

Mukesh Buch
27 Jun, 2017
New York City

Computer Services net surged on 15% jump in revenues. Darden Restaurants net plunged but the restaurant operator lifted revenues forecast. FactSet Research net dropped but revenues soared. The EU levied record fine on Alphabet of $2.7 billion. NovaGold net loss narrowed.

[R]10:55 AM New York – Computer Services net surged on 15% jump in revenues. Darden Restaurants net plunged but the restaurant operator lifted revenues forecast. FactSet Research net dropped but revenues soared. The EU levied record fine on Alphabet of $2.7 billion. NovaGold net loss narrowed.[/R]

Tollbooth Index fell 16.35 to 12,104.82.

Earnings Review

Computer Services, Inc ((CSVI)) rose 20 cents to $46.50 after the customer services provider said revenues in the first-quarter ending in May jumped 15.2% from a year ago to $64.7 million.

Net income in the quarter surged 47% to $9.9 million or 71 cents per diluted share from $6.8 million or 48 cents in the same quarter last year.

Darden Restaurants, Inc ((DRI)) jumped 4.6% or $4.17 to $94.25 after the full-service restaurant operator reported revenues in the fourth-quarter ending on May 28 soared 7.8% from a year ago to $1.9 billion.

Same restaurant sales in the quarter advanced 3.3%.

Net income in the quarter plunged 11.3% to $123.8 million or 98 cents per diluted share from $139.6 million or $1.09 in the same quarter last year.

The restaurant estimated full-year revenue to increase between 11.5% and 13% and earnings per share in the range of $4.38 to $4.50.

FactSet Research Systems Inc ((FDS)) fell 21 cents to $165.88 after the financial information services provider said revenues in the third-quarter ending in May advanced 8.5% from a year ago to $312.1 million.

Net income in the quarter dropped 2.1% to $65.4 million or $1.66 per diluted share from $66.8 million or $1.62 in the same quarter last year.

FactSet forecasted fourth-quarter revenues in the range of $321 million and $328 million and operating margin in the range of 28% and 29% and diluted earnings per share between $1.67 and $1.73.

Alphabet Inc ((GOOG)) dropped 1.2% or $11.66 to $940.61 after the European Commission levied fine of about $2.7 billion.

""What Google has done is illegal under EU antitrust rules. It denied other companies the chance to compete on the merits and to innovate,” said European Competition Commissioner Margrethe Vestager.

EU antitrust regulator said that internet search engine operator has 90 days to stop favoring its own shopping service or face additional penalty per day of up to 5% of its average daily global turnover.

Google said it disagrees with the ruling and may consider an appeal.

NovaGold Resources Inc ((NG)) advanced 3.6% or 46 cents to $4.74 after the Canada-based gold producer said net loss in the second-quarter ending in May narrowed to $8.5 million from $9.1 million and diluted loss per share were flat at 3 cents compared to the same period a year ago.