Facebook Tumbles on Weak Outlook, MasterCard Reported Strong Results

Mukesh Buch
26 Jul, 2018
New York City

Bristol-Myers missed earnings estimates. ConocoPhillips net jumped on higher oil prices. Facebook tumbled as revenue growth decelerates.Ford lowered its full year outlook. MasterCard reported strong results. Valero Energy beats profit estimate.

[R]1:15 PM New York City, New York – Bristol-Myers missed earnings estimates. ConocoPhillips net jumped on higher oil prices. Facebook tumbled as revenue growth decelerates.Ford lowered its full year outlook. MasterCard reported strong results. Valero Energy beats profit estimate.[/R]

Tollbooth Index gained 85.67 or 0.5% to 15,952.43 but for the year-to-date soared 15.9%.

Earnings Review

Bristol-Myers Squibb Co ((BMY)) slipped 1.4% or 82 cents to $58.22 after the drug maker reported revenues in the second-quarter ending in June soared 11% from a year ago to $5.7 billion.

Net income in the quarter tumbled 59.3% to $373 million or 23 cents per diluted share from $916 million or 56 cents in the same quarter last year.

Bristol-Myers lowered fiscal 2018 diluted earnings per share forecast in the range of $2.68 to $2.78 from the earlier estimate of $2.70 to $2.80 but revenues to increase in the mid- to high-single digits.

ConocoPhillips ((COP)) fell 33 cents to $71.18 after the oil and gas producer said revenues in the second-quarter ending in June jumped 3.4% from a year ago to $9.2 billion.

Net in the quarter swung to profit $1.6 billion or $1.39 per diluted share from a loss of $3.4 billion or $2.78 in the same quarter last year.

The oil and gas explorer lifted fiscal 2018 production forecast to between 1.23 million barrels of oil equivalent per day and 1.26 million boe per day from the earlier estimate of 1.2 million boe per day to 1.24 million boe per day.

The oil producer said, in fiscal 2018, spending is expected to increase to $6 billion to reflect higher $65 per barrel oil price from the earlier spending estimate of about $5.5 billion.

Facebook Inc ((FB)) tumbled 18.5% or $40.14 to $177.36 after the social media services provider reported total revenues in the second-quarter ending in June surged 42% from a year ago to $13.2 billion.

Net income in the quarter soared 31% to $5.1 billion or $1.74 per diluted share from $3.9 billion or $1.32 in the same quarter last year.

“Our total revenue-growth rates will continue to decelerate in the second-half of 2018, and revenue growth rates to decline by high-single-digit percentages from prior quarters,” said chief financial officer David Wehner.

“As I’ve said on past calls, we’re investing so much in security that it will significantly impact our profitability,” said founder and chief executive officer Mark Zuckerberg.

Ford Motor Co ((F)) declined 5% or 53 cents to $10 after the automobiles maker said total revenues in the second-quarter ending in June fell 2.6% from a year ago to $38.9 billion.

Net income in the quarter declined 31% to $1.1 billion or 27 cents per diluted share from $2 billion or 51 cents in the same quarter last year.

Ford said it was challenging quarter in Asia Pacific and Europe regions and the automaker lowered its diluted earnings per share forecast to $1.30 to $1.50 from the earlier estimate of $1.45 to $1.70.

International Paper Company ((IP)) dropped 3.3% or $1.74 to $51.30 after the packaging and printing papers maker said net sales in the second-quarter ending in June soared 8.4% from a year ago to $5.8 billion.

Net income in the quarter jumped to $407 million or 97 cents per diluted share from $80 million or 19 cents in the same quarter last year.

MasterCard Incorporated ((MA)) slumped 2.5% or $5.40 to $208.76 after the electronic payment services provider reported net revenues in the second-quarter ending in June jumped 20% from a year ago to $3.7 billion.

Net income in the quarter soared 33% to $1.6 billion or $1.50 per diluted share from $1.2 billion or $1.10 in the same quarter last year.

MasterCard said gross dollar volume surged 14% to $1.5 trillion from a year ago period.

Valero Energy Corp ((VLO)) soared 4.7% or $5.09 to $114.42 after the oil refiner said revenues in the second-quarter ending in June surged 39.4% from a year ago to $31 billion.

Net income in the quarter jumped 54.2% to $845 million or $1.96 per diluted share from $548 million or $1.23 in the same quarter last year.

Valero reaffirmed fiscal 2018 capital investment plans of $2.7 billion, $1 billion for growth projects and $1.7 billion for sustaining the business.