CenturyLink Inc. slashed its shareholder dividend by more than half, causing its stock price to tumble around -9.4% Thursday.
The wireless telecom company’s board agreed to lower yearly dividend to $1 from $2.16 – something that the company expects would free up cash for facilitating its debt repayment.As of Dec. 31, its long-term debt stood at $35.4 billion (compared to $20 billion of shareholder equity).
Along with announcing the dividend cut, CenturyLink also reported its fourth quarter adjusted earnings of 37 cents a share – which is substantially higher than the year-ago quarter’s 18 cents.
This moved the four-week moving average of claims to its highest level in just over a year.
Initial claims for state unemployment benefits increased 4,000 to a seasonally adjusted 239,000 for the week ended Feb. 9, the Labor Department said on Thursday.Data for the prior week was revised up to show 1,000 more applications received than previously reported. Despite the recent jump in claims, layoffs remain low amid companies struggling to find workers.
Coca-Cola's fourth quarter earnings matched analysts’ expectations, while the soft drink giant warned about a potential slowing of comparable sales in 2019.
For the three months ending December, Coke's earnings of 43 cents per share was +9% higher compared to the year-ago quarter, and was in line with Wall Street consensus estimates.
However, the company's group revenues of $7.1 billion was slightly lower than the $7.06 billion analysts' estimate.It was also -6% below the year-ago period’s figure.
For 2019, Coca-Cola projects organic sales growth of +4% - which would be slower than 2018’s +5%.
Amazon has secured central London retail space for its checkout-free Amazon Go food stores concept, according to trade publication, The Grocer.This is expected to be the company's first expansion of its automated convenience shops outside the United States.
Amazon currently sells food in Britain through its Amazon Fresh, Amazon Pantry and Amazon Prime Now services.
Exelixis, Inc. delivered better-than-expected results for fourth-quarter 2018, wherein both earnings and revenues beat estimates on strong performance by Cabometyx.
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Coca-Cola European Partners PLC is expecting 2019 to be a year of positive growth in sales and profit for the company.
The bottler of Coca-Cola products has predicted low single-digit revenue growth (excluding impact from currency fluctuations or incremental soft drink taxes), and 6%-7% increase in comparable operating profit for 2019.Its revenue in the quarter increased + 5% year-over-year to touch 2.8 billion euros – as prices rise more than offset decline in volume. Volume dropped -2.5%, while revenue per case rose +6%.
Avon Products reported earnings (adjusted for non-recurring items) of $0.07 per share for the fourth quarter 2018, falling short of Zacks Consensus Estimate of $0.08 per share.It was also lower than the yer-ago quarter’s $0.12 per share.
The cosmetics company's sales of $1.32 billion for the quarter missed the Zacks Consensus Estimate by 8.30%. Revenues were also lower than the year-ago period’s $1.57 billion.
According to Zacks Investment Research, the current consensus earnings-per-share estimate for Avon is breakeven on $1.24 billion in revenues for the next quarter, while the consensus projection for the current fiscal year is earnings of $0.12 a share on $5.23 billion in revenues.
China will generate more data than the United States by 2025 as it pushes into new technologies such as the so-called Internet of Things, according to a new report.Read more...
Treasury Secretary Steven Mnuchin said he was looking forward to trade talks with China on Thursday, as discussions in Beijing moved to a higher level in a push to de-escalate a tariff war ahead of a March 1 deadline for a deal.Read more...
When America sneezes, the world catches cold, the saying goes.Now Goldman Sachs Group Inc. economists are asking whether the reverse also holds true.
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Biotech firm Exelixis (Nasdaq: EXEL) has been trending higher since the end of October.That pattern looks similar to what we saw at the end of December.
Tickeron’s A.I.
Oil and gas exploration company Cabot Oil & Gas (NYSE: COG) saw a bullish pattern develop on its daily chart recently and that pattern is called Three Rising Valleys.The incremental jumps in the low prices form the pattern.
The daily stochastic readings were in oversold territory and made a bullish crossover on Monday and that is also a possible bullish sign for the stock.
The A.I.dvisor Trend Prediction tool generated a bullish signal on Cabot Oil & Gas on February 7.
The Tickeron AI Trend Prediction tool generated a bullish signal on application software firm Fortinet (Nasdaq: FTNT) on February 7 and that was the day after the company reported earnings.Fortinet also beat on the top line with revenue of $507 million while the estimate was for $496 million.
Something that stood out about Fortinet’s earnings report from some of the other tech companies was how China was impacting the company.
The lower rail isn’t as clear cut, but if the stock drops anywhere near the lower rail, it will take the price down below the $16 level.
The Tickeron AI Trend Prediction tool generated a bearish signal on the stock on February 5.The signal calls for a decline of at least 4% over the coming month.
U.S.
Bristol-Myers Squibb said that the European Commission approved Sprycel, in combination with chemotherapy for the treatment of pediatric patients with certain cancers or leukemia. This is the second pediatric leukemia indication for Sprycel in Europe.
“We are proud that the approval by the European Commission brings children with Ph+ acute lymphoblastic leukemia a new treatment option, including a powder formulation developed as part of our commitment to addressing the unique needs of children with cancer,” said Fouad Namouni, M.D., head, oncology development, Bristol-Myers Squibb.
Domestic construction spending picked up in November on the back of a surge in home building, particularly, apartment construction.
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Johnson & Johnson is buying privately held Auris Health Inc. for $3.4 billion.Auris makes a robotic scope used in respiratory and lung cancer procedures and will allow J&J to gain access to devices that simplify difficult surgical procedures. “This acquisition will accelerate Johnson & Johnson’s entry into robotics with potential for growth and expansion into other interventional applications,” J&J said in a statement.
J&J also said the acquisition would complement its purchase last year of Orthotaxy, a privately held developer of software-enabled robotic technology for surgery.
Saudi state energy giant, Aramco, plans to foray into international oil and gas exploration in future, which may put the company into competition with Exxon Mobil (XOM) and Royal Dutch Shell (RDS).Its top agenda is to build a global natural gas business.
Other considerations include investments in LNG projects in the Russian Arctic and the U.S., as well as opportunities in Australia, which recently topped Qatar as the world's top exporter of LNG.
Aramco has already made investments in overseas refineries and petrochemicals plants.
Beverage behemoth Coca-Cola had a magnificent 2018, as the stock appreciated by ~15% and emerged as one of the best-performing Dow stocks.Over the same period, the index was down around 4%.
KO has seen another 5% surge in the last two weeks, and technician experts believe the company can keep up its strong performance -- particularly if the company reports earnings breakout this week.
Keep an eye on the stock this week.
Amazon and General Motors are currently negotiating a deal valued at $1 - $2 billion with Rivian Automotive LLC, a Michigan-based start-up specializing in electric pickup truck manufacturing.If the negotiations conclude successfully, a deal could be announced as early as this month.
Tesla, currently the world’s biggest electric car maker, may have a tough time competing with this deal as it is already struggling to balance the production and profits of its flagship Model 3 sedan.