Disney Acquires 21st Century Fox; Adobe, Costco and Oracle Beat Estimates

Mukesh Buch
15 Dec, 2017
New York City

Adobe Systems beats profit estimates. Costco reported strong results. Disney agreed to acquire Twenty-First Century Fox for $52.4 billion. Jabil net plunged but revenues jumped. Oracle declined despite profit beats.

[R]11:45 AM New York City, New York – Adobe Systems beats profit estimates. Costco reported strong results. Disney agreed to acquire Twenty-First Century Fox for $52.4 billion. Jabil net plunged but revenues jumped. Oracle declined despite profit beats.[/R]

Tollbooth Index increased 25.83 or 0.2% to 13,820.17.

Earnings Review

Adobe Systems Inc ((ADBE)) gained $1.65 to $176.66 after the application software developer said revenues in the fourth-quarter ending on December 1 soared 25% from a year ago to $2 billion.

Net income in the quarter jumped 25.5% to $501.5 million or $1 per diluted share from $399.6 million or 80 cents in the same quarter last year.

Digital Media segment revenue was $1.39 billion and revenues in the Creative segment and Document Cloud business achieved record revenue of $1.16 billion and $235 million, respectively and Cloud revenue soared 18% to $550 million.

Costco Wholesale Corporation ((COST)) jumped 4.4% or $8.25 to $194.78 after the discount stores operator reported total revenues in the first-quarter ending on November 26 surged 13.3% from a year ago to $31.1 billion.

Comparable sales in the quarter jumped 10.5% and online sales soared 43.5%.

Net income in the quarter soared 17.4% to $640 million or $1.45 per diluted share from $545 million or $1.24 in the same quarter last year.

The Walt Disney Company ((DIS)) rose 40 cents to $110.97 after the entertainment services provider agreed to acquire Twenty-First Century Fox Inc for about $52.4 billion.

Under the terms, shareholders of Twenty-First Century Fox will receive 0.2745 shares of the combined company and The Walt Disney will issue 515 million new shares to pay for the acquisition.

Jabil Inc ((JBL)) gained 1.8% or 48 cents to $27.96 after the electronic chip maker said net revenues in the first-quarter ending in November advanced 9.8% from a year ago to $5.6 billion.

Net income in the quarter plunged 27.5% to $63.8 million or 35 cents per diluted share from $88 million or 47 cents in the same quarter last year.

Jabil forecasted fiscal 2018 net revenue between $4.75 billion and $5.05 billion and operating income in the range of $124 million to $169 million and diluted earnings per share in the range of 31 cents to 57 cents.

Oracle Corporation ((ORCL)) declined 5.3% or $2.64 to $47.55 after the corporate information technology provider reported total revenues in the second-quarter ending in November jumped 6% from a year ago to $9.6 billion.

Net income in the quarter surged 10% to $2.2 billion or 52 cents per diluted share from $2 billion or 48 cents in the same quarter last year.