Adobe Lifts Fiscal Outlook; J&J Takes $13.3 B Tax Charge

Mukesh Buch
23 Jan, 2018
New York City

Adobe Systems lifted fiscal outlook. J&J said net swung to a loss on tax provision charges. Kimberly Clark beats profit estimates. Netflix revenues surged. P&G net tumbled 68%. Verizon net soared.

[R]1:45 PM New York City, New York – Adobe Systems lifted fiscal outlook. J&J said net swung to a loss on tax provision charges. Kimberly Clark beats profit estimates. Netflix revenues surged. P&G net tumbled 68%. Verizon net soared.[/R]

Tollbooth Index increased 30.96 or 0.2% to 14,770.18.

Earnings Review

Adobe Systems Inc ((ADBE)) gained 1.6% or $3.11 to $201.03 after the application software developer lowered diluted earnings per share forecast to $1.05 from the earlier estimate of $1.15.

Adobe lifted fiscal 2018 diluted earnings per share estimate to $4.72 from the earlier estimate of $4.40 and total revenues to $8.7 billion and added cloud total revenue in the full-year to increase 15% and cloud subscription bookings to soar 20%.

Johnson & Johnson ((JNJ)) slumped 2.1% or $3.03 to $145.10 after the healthcare products maker reported total revenues in the fourth-quarter ending in December surged 11.5% from a year ago to $20.2 billion.

Net in the quarter swung to a loss of $10.7 billion or $3.99 per diluted share from profit of $3.8 billion or $1.38 in the same quarter last year.

The healthcare products maker said decline in profit was driven by one-time tax charges linked to repatriation of foreign income of $13.27 billion.

Kimberly Clark Corp ((KMB)) gained 96 cents to $117.90 after the sanitary products maker said net sales in the fourth-quarter ending in December rose 1% from a year ago to $4.6 billion.

Net income in the quarter surged 22% to $617 million or $1.75 per diluted share from $505 million or $1.40 in the same quarter last year.

Kimberly Clark forecasted fiscal 2018 net sales to increase between 1% and 2% and diluted earnings per share in the range of $3.90 to $4.50.

Netflix, Inc ((NFLX)) soared 10.7% or $24.61 to $252.23 after the internet based movie library stated revenues in the fourth-quarter ending in December surged 32.7% from a year ago to $3.3 billion.

Net income in the quarter jumped 22% to $185.5 million or 41 cents per diluted share from $66.8 million or 15 cents in the same quarter last year.

Netflix said total global members increased to 117.6 million and 110.6 million are paying subscribers and price growth in the quarter was of 10%.

Procter & Gamble Co ((PG)) dropped 2.7% or $2.50 to $89.37 after the consumer packaged goods maker reported net sales in the second-quarter ending in December advanced 3% from a year ago to $17.4 billion.

Net income in the quarter tumbled 68% to $2.5 billion or 93 cents per diluted share from $7.9 billion or $2.88 in the same quarter last year.

P&G estimated fiscal 2018 core earnings per share to grow between 5% and 8% from the earlier estimate of 5% to 7% and sales to grow about 3% but GAAP earnings per share to decline between 30% and 32% from the $5.59 in fiscal 2017.

Travelers Companies Inc ((TRV)) soared 4.2% or $5.80 to $145.04 after the commercial, personal property and casualty insurance provider said revenues in the fourth-quarter ending in December increased 3.6% from a year ago to $7.5 billion.

Net income in the quarter plunged 42% to $551 million or $1.98 per diluted share from $943 million or $3.28 in the same quarter last year.

The insurer said pretax catastrophe losses from recent wildfires in California in the quarter were $499 million from the earlier estimate of $525 million to $675 million in November.

Verizon Communications Inc ((VZ)) rose 1 cent to $53.46 after the wireless carrier reported revenues in the fourth-quarter ending in December increased 5% from a year ago to $34 billion.

Net income in the quarter jumped 308.7% to $18.8 billion or $4.56 per diluted share from $4.6 billion or $1.10 in the same quarter last year.

Verizon added net phone subscribers in the quarter increased 431,000 and estimated capital spending in fiscal 2018 in the range of $17 billion to $17.8 billion, including the commercial launch of 5G.