GE to Restate 2016, 2017 Results; Rockwell and General Dynamics in Focus

Mukesh Buch
24 Jan, 2018
New York City

Abbott reported strong medical device business. Comcast beats earnings estimates. GE agreed to restate its 2016 and 2017 financial results. United Tech profit turns lower on tax reform. Illinois Tool Works lifted fiscal 2018 guidance.

[R]11:50 AM New York City, New York – Abbott reported strong medical device business. Comcast beats earnings estimates. GE agreed to restate its 2016 and 2017 financial results. United Tech profit turns lower on tax reform. Illinois Tool Works lifted fiscal 2018 guidance.[/R]

Tollbooth Index decreased 16.36 to 14,742.79.

Earnings Review

Abbott Laboratories ((ABT)) jumped 4.1% or $2.41 to $61.66 after the healthcare products maker reported sales in the fourth-quarter ending in December surged 42.3% from a year ago to $7.6 billion.

Net in the quarter swung to a loss of $828 million or 74 cents per diluted share from profit of $798 billion or 65 cents in the same quarter last year.

The diversified healthcare products maker said medical device business soared 9.6% to $2.74 billion.

Abbott forecasted fiscal 2018 diluted earnings per share between $1.22 and $1.32.

Baker Hughes, a GE company ((BHGE)) declined 4.7% or $1.69 to $34.15 after the full-stream oil field services provider said revenues in the fourth-quarter ending in December jumped 7% from a year ago to $5.8 billion.

Net loss in the quarter narrowed to $29 million or 7 cents per diluted share from $104 million or 24 cents in the third-quarter of fiscal 2017.

Comcast Corporation ((CMCSA)) fell 38 cents to $42.81 after the broadcasting services provider reported revenues in the fourth-quarter ending in December soared 4.2% from a year ago to $21.9 billion.

Net income in the quarter surged to $14.98 billion or $3.17 per diluted share from $2.3 billion or 48 cents in the same quarter last year.

General Dynamics Corporation ((GD)) soared 3.3% or $6.95 to $214.43 after the aerospace and defense products maker reported revenues in the fourth-quarter ending in December jumped 8.1% from a year ago to $8.3 billion.

Net income in the quarter surged 11.6% to $636 million or $2.10 per diluted share from $570 million or $1.85 in the same quarter last year.

As of December 30, General Dynamics said total backlog of about $63.2 billion.

General Electric Company ((GE)) fell 1% or 17 cents to $16.72 after the industrial conglomerate said revenues in the fourth-quarter ending in December declined 5% from a year ago to $31.4 billion.

Net in the quarter swung to a loss of $9.8 billion or $1.13 per diluted share from profit of $3.5 billion or 39 cents in the same quarter last year.

The conglomerate forecasted earnings per share in the range of $1 to $1.07.

Illinois Tool Works Inc ((ITW)) advanced 2.3% or $3.94 to $176.97 after the industrial products and equipment maker stated revenues in the fourth-quarter ending in December soared 7% from a year ago to $3.6 billion.

Net in the quarter swung to a loss of $76 million or 22 cents per diluted share from profit of $507 million or $1.45 in the same quarter last year.

Illinois Tool estimated fiscal 2018 diluted earnings per share in the range of $7.45 to $7.65 and accelerating previously announced plans to increase dividend pay-out ratio.

Rockwell Automation, Inc ((ROK)) dropped 1.6% or $3.21 to $201.50 after the industrial automation power, control and information solutions provider said revenues in the first-quarter ending in December advanced 7% from a year ago to $1.6 billion.

Net in the quarter swung to a loss of $236.4 million or $1.84 per diluted share from profit of $214.7 million or $1.65 in the same quarter last year.

Rockwell forecasted fiscal 2018 sales growth in the range of 4.5% to 7.5% and diluted earnings per share in the range of $3.67 to $3.97.

United Technologies Corporation ((UTX)) gained 73 cents to $136.76 after the aerospace and defense products maker reported sales in the fourth-quarter ending in December surged 7% from a year ago to $15.7 billion.

Net income in the quarter tumbled 68% to $397 million or 50 cents per diluted share from $1 billion or $1.25 in the same quarter last year.

UTC estimated fiscal 2018 total sales between $62.5 billion and $64 billion and diluted earnings per share in the range of $6.85 to $7.10.