In light of this morning’s reports of contracted durable orders (ex-transportation) and a pullback in consumer confidence, things could have been worse. The S&P 500 ended the day at 2091.7 — up a mere 0.19%.
Not every name escaped the depth of the bear’s clutches, though. Corning Incorporated (NYSE:GLW), Nabors Industries Ltd. (NYSE:NBR) and T-Mobile US Inc (NASDAQ:TMUS) all used more than their fair share of red ink on Tuesday.
Here’s the deal.
Corning Incorporated (GLW)
Last quarter, industrial technology outfit Corning managed to meet its per-share earnings estimates. Its top line, however, fell short of expectations, and parts of its outlook were lackluster, sending GLW shares more than 8% lower for the session.
In its first fiscal quarter of 2016, Corning earned 28 cents per share on revenue of $2.17 billion. The bottom line was in line with expectations, but the top line fell short of the anticipated $2.22 billion. Its Gorilla Glass business fell 15%, and fiber optic glass sales were off to the tune of 13%.
The company says those business lines will recover well, but Stern Agee CRT analyst Rob Cihra isn’t so sure, commenting:
“…But GLW has reduced its projection for FY16E to now grow mid-to-high single digits vs. its prior outlook for low teens Y/Y (which we had repeatedly called out as overly aggressive). We’ve been skeptical Gorilla Glass could rebound as dramatically as hoped given a broader smartphone market growing just single digits this year or half the pace of 2015.”
Nabors Industries Ltd. (NBR)
Oil driller Nabors Industries lost 29 cents per share last quarter on revenue of $597.6 million. The pros, however, were calling for a loss of 33 cents per share, and revenue of $633.5 million. Adding in the impairment charge on Nabors’ investment C&J Energy Services, the per-share loss ramped up to $1.41.
Nevertheless, NBR shareholders were worried about weakening margins for the near future … worried enough to send NBR shares down nearly 10% for the session.
T-Mobile US Inc (TMUS)
Last but not least, one would think with T-Mobile swinging to a surprisingly wide profit last quarter, TMUS shares would be flying high. One would be wrong, however.
TMUS fell 4.5% on Tuesday, as traders had a bit of a “can’t get any better than this” moment.
In its first fiscal quarter of 2016, wireless carrier T-Mobile U.S. posted an operating profit of 56 cents per share on revenue of $8.6 billion. The bottom line was a nice swing from the year-ago loss of 9 cents per share, and revenue was up more than 10%. Better yet, analysts were only calling for a profit of 10 cents per share of TMUS and sales of $8.43 billion. The company added 2.2 million subscribers, up from net growth of 1.8 million in the same quarter of 2015. Bad debt also shrunk.
The only clear concern may be the possibility that a deteriorating economy could rekindle bad-debt growth, even though its customers’ credit rating has been inching higher.
As of this writing, James Brumley did not hold a position in any of the aforementioned securities.