In today's trifecta of after hours earnings results, all three behemoths representing different key parts of the US economy, stumbled after either missing expectations, or guiding lower.
First, it was Mondelez, which missed on the top and bottom line, reporting Q4 EPS of $0.47 below the $0.49 expected, on disappointing revenue of $6.77BN, below the $6.87BN expected. The company also missed on margin reporting Q4 adj. gross margin 39.0%, below the est. 40.1%. Some other details:
- 4Q organic rev. growth +1.30%
- 4Q adj. operating margin +14.4%
- 4Q regional organic rev. for LatAm +3.70%
- 4Q regional organic rev. growth for Europe +0.70%
- 4Q regional organic rev. growth for North America +0.40%
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Next, it was Gilead, which beat on both the top and bottom line, but its Hep C guidance was substantially below the mark. GILD said Q4 EPS was $2.70, above the $2.61 expected, on $7.22Bn in revenue, also beating the $7.17BN estimate. However, one problem was that Q4 revenue from the blockbuster Sovaldi drug was $541MM missed estimates of $595.8MM, even as Harvoni's $1.64BN beat estimates of $1.60Bn. But the kicker was that the company predicted HCV product sales for 2017 of only $7.5Bn to $9Bn, below the Wall Street estimate of over $10Bn. The result: shares sliding over 3%.
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Finally, completing the trifecta, Disney also dropped after missing badly on the top line with Q1 revenue of only $14.8BN, far below the $15.3BN expected, despite beating on the bottom line with EPS coming in at $1.55, above the $1.48 expected. And the other reason why the market is punishing its stock if only for the next few hours, is that operating profit from Cable Networks came in at $864MM, below the $1.08BN expected, as Disney continues to bleed revenue in his key segment.
Some more details:
- 1Q Cable Networks rev. $4.43b, est. $4.51b
- 1Q media networks rev. $6.23b, est. $6.38b
- 1Q parks and resorts rev. $4.56b, est. $4.69b
- 1Q studio entertainment rev. $2.52b, est. $2.55b
- 1Q consumer/interactive rev. $1.48b, est. $1.70b
- 1Q media networks operating income $1.36b, est. $1.31b
- 1Q parks & resorts operating income $1.11b, est. $1.05b
- 1Q studio entertainment operating income $842m, est. $881m
- 1Q consumer/interactive operating income $642m, est. $682m