On Tuesday, MCD shed 2.98% to settle at $172.48 per share, despite the group releasing better-than-expected results for the fourth quarter. Revenues for the period came in at $5.34b, easily topping forecasts of $5.22b. In addition, same-store sales in the US increased by 4.5%, marginally higher than an estimated increase of 4.3%. Net income declined by 41% to $698.7m, or 87 cents per share, down from $1.19bn, or $1.44 per share, a year ago. This decline was partly due to changes in the US tax law, with the group taking an 84 cents per share hit. On an adjusted basis, earnings came in at $1.71 per share, beating forecasts of $1.59 per share.
Lockheed Martin added 1.89% to settle at $351.42 per share on Monday, despite the group releasing mixed results for the fourth quarter. Reported net sales grew to $15.14b, up from the $13.75b, easily topping analysts’ estimates of $14.72b. On an adjusted basis, Lockheed Martin earned $3.87 per share, missing forecasts of $4.07 per share. The group expects net sales to be between $50b and $51.5b in 2018, in-line with expectations of $51.1b. Earnings for 2018 are set to come in at between $15.20 and $15.50 per share, much higher than the estimated $14 per share.
On Friday, Colgate-Palmolive ended sharply lower, down 4.85%, negatively affected by the release of disappointing quarterly results. During the period, the group recorded a 4.5% increase in sales to $3.9b, but this was still slightly lower than estimates of $3.92b. Gross margins were negatively affected during the fourth quarter, as the metric declined by 60 basis points to 69.8%. The company also confirmed its spending on advertising had surged by 24% to $369m and it intends to increase spending during 2018. Furthermore, net income slumped by 50% to $323m, or 37 cents per share, with its results also affected by a $275m charge following changes to the US tax code. On an adjusted basis, earnings came in at 75 cents per share, in-line with expectations.
Intel ended 0.46% lower at $45.30 per share, but surged more than 5.5% in after-market trade, after the group released its latest quarterly results. Revenues for the period grew by 4% to $17.05bn, much higher than estimates of $16.35bn. Intel’s biggest segment, Client Computing, saw revenues decline by 2% to $9bn, but this was more than offset by a 20% increase in revenue from its Data Centre segment to $5.6bn. Adjusted earnings also surpassed expectations of $0.86 to come in at $1.08 per share. Looking forward, Intel expects its tax rate to decline to 14% during 2018 and also announced a 10% increase in its quarterly cash dividend as a result.
Comcast released better-than-expected quarterly results on Wednesday. During the fourth quarter, the group saw revenue increase to $21.92bn, up from $21.03bn a year ago and higher than estimates of an increase to $21.82bn. This uptick was partly attributable to the group adding 350,000 high-speed internet customers, while its business services division also enjoyed a strong quarter. Overall, adjusted earnings per share stood at 49 cents, beating forecasts of 47 cents and up from the 45 cents reported in the previous corresponding period. The group’s film division provided a boost to profits, with the segment experiencing its most profitable year ever in its 105-year history.
On Tuesday, Johnson & Johnson shed 4.26%, even though it added as much as 1.9% in premarket trading. This slump was mainly due to a disappointing sales outlook, despite the group surpassing expectations for both earnings and revenues. During the 4th quarter, J&J saw revenues come in at $20.2bn, 11.5% higher than that reported a year ago and beating estimates of $20.1bn. However, J&J reported a net loss of $10.7bn, or $3.99 per share. After stripping out once-off items, the group saw earnings come in at $4.8bn, or $1.74 per share, marginally higher than forecasts of $1.72 per share. Looking forward, J&J confirmed that it only expected operational revenue to increase by between 3.5% and 4.5%.
On Monday, Netflix added 3.23% during the normal session, but surged more than 9% in after-hours trade following the release of strong quarterly results. As a result, the group’s market capitalisation broke through $100bn for the first time ever. During the December quarter, the group saw revenues grow to $3.286bn, in-line with estimates. This uptick was partly due to Netflix adding 6.36m new international subscribers, easily beating forecasts of 5.1m. The group also added 1.98m customers in the US, which helped Netflix end the year with 117.58m subscribers. Adjusted earnings per share met estimates of 41 cents per share.
Schlumberger ended higher on Friday, after the group released a decent set of quarterly results. The world’s largest oilfield services company saw revenues increase by 15% to $8.18bn, beating estimates of $8.12bn. The group also saw its net loss widen to $2.6bn, sharply lower than the $204mn recorded a year ago. This sharp drop was mainly due to charges of $2.7bn during the quarter, including a $1.1bn restructuring charge related to its WesternGeco seismic business and a $938mn write-down of its Venezuelan holdings. However, on an adjusted basis, its fourth quarter earnings came in at 48 cents per share, beating forecasts of 44 cents per share.
IBM added 0.28% yesterday, but slumped in after-hours trade following the release of its fourth quarter results. Revenue for the period stood at $22.5bn, easily topping forecasts of $22.06bn. This was partly due to $11.1bn in revenue from its strategic initiatives, which now contribute 49% of all revenue. IBM also saw adjusted earnings surpass analysts’ expectations by 1 cent to come in at $5.18 per share. The group expects adjusted earnings to be at least $13.80 per share in 2018, slightly lower than analysts’ estimates of $13.92 per share. This quarter also marked the first per quarterly growth in 23 periods.
Yesterday, Bank of America shares dropped 0.19% following the release of mixed quarterly results. During the period, adjusted revenues came in at $21.4bn, slightly lower than expectations of $21.531bn. This was in spite of an 11% increase in net interest income to $11.5bn, which benefitted from higher interest rates. However, the group did record a net write-off of $1.2bn, which was primarily driven by a single-name non-US commercial charge of $292mn. In addition, the group also saw its fixed income trading revenues decline by 13% during the quarter. Nevertheless, Bank of America reported adjusted earnings of 47 cents per share, easily topping forecasts of 44 cents per share.