Top 10 News for 10/24 - 10/28: AT&T (T), Time Warner Make it Official; Margins Hamper Apple's Q4; Mergers Aplenty

October 28, 2016 4:00 PM EDT

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1. Following speculation late last week, AT&T Inc. (NYSE: T) and Time Warner Inc. (NYSE: TWX) announced on Sunday they entered into a definitive agreement under which AT&T will acquire Time Warner in a stock-and-cash transaction valued at $107.50 per share, confirming rumors earlier in the week. The agreement has been approved unanimously by the boards of directors of both companies.

2. Apple (Nasdaq: AAPL) shares were hit this week following the company's FQ416 report. Apple posted Q4 EPS of $1.67 on revenue of $46.9 billion, versus consensus estimates calling for EPS of $1.65 and revenue of $46.89 billion. The company sold 45.51 million iPhone units in the quarter, versus the consensus of 45 million. For the most part, investors were leery about the drop in the iPhone's ASP for the quarter. Click here for more color.

3. Qualcomm Incorporated (Nasdaq: QCOM) and NXP Semiconductors N.V. (Nasdaq: NXPI) announced entering a definitive agreement, unanimously approved by the boards of directors of both companies, under which Qualcomm will acquire NXP. Pursuant to the agreement, a subsidiary of Qualcomm will commence a tender offer to acquire all of the issued and outstanding common shares of NXP for $110.00 per share in cash, representing a total enterprise value of approximately $47 billion.

4. Tesla (Nasdaq: TSLA) reported Q3 EPS of $0.71, versus the analyst estimate of ($0.54). Revenue for the quarter came in at $2.3 billion versus the consensus estimate of $2.35 billion. The company mainted its outlook calling for 50,000 new vehicle deliveries for the second half of 2016, with a Q4 plan of just over 25,000 deliveries, despite the challenges of winter weather and the holiday season. Tesla said, We expect about 30% to 35% of these deliveries to be accounted for as leases for revenue recognition purposes. Shares popped following the Wednesday night announcement, but gains were largely pared by the end of the week.

5. AbbVie (NYSE: ABBV) shares were hit on Friday after the company reported Q3 EPS of $1.21 and revenue of $6.43 billion. Consensus estimates called for EPSof $1.20 and revenue of $6.56 billion. The company raised its quarterly dividend 12.3% to $0.64 per share. Updated guidance called for FY16 EPS of $4 - $4.82, with the midpoint largely below the Street's outlook of $4.82.

6. Community Health Systems, Inc. (NYSE: CYH) shares were hit this week after the company announced preliminary financial and operating results for the three months ended September 30, 2016. CYH said it anticipates a Q3 loss of $(0.35) per share (diluted) for the three months ended September 30, 2016. The Street was looking for EPS of $0.31.

7. Crude prices trickled lower over the last few days for the worst weekly performance for the commodity in about a month. Friday, word was that Organization of the Petroleum Exporting Countries (OPEC) would come to an agreement on output cuts, though no final decision has been made. WTI fell 4.2 percent for the week to settle at $48.70 per barrel. It should be noted that a range of $49 to $52 per barrel has been firm since OPEC talks started. Some market watchers see another support level at $46.40 per barrel.

8. AstraZeneca (NYSE: AZN) shares fell Thursday related to an FDA partial clinical halt in recruitment for its trial evaluating its IO combo in head and neck cancer. The company affirmed the action and issued a bit of commentary on the matter here.

9. StoneMor Partners L.P. (NYSE: STON) saw its market cap about halved on Friday after the company announced a quarterly cash distribution of $0.33 per common unit for the 3rd quarter 2016. The distribution was a reduction of 50 percent from the prior year 3rd quarter.

10. The New York Stock Exchange announced on Thursday that the staff of NYSE Regulation has determined to commence proceedings to delist the common stock of Violin Memory, Inc. (NYSE: VMEM) from the NYSE. Trading in the Company’s common stock on the NYSE will be suspended immediately. News for Violin Memory comes just a few years after its highly-anticipated IPO.



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