The world’s largest planemaker, Boeing, said Thursday it would lower production of 747-8 aircraft and would recognize an 84 cents per share charge in its fourth-quarter earnings, after taxes. Shares dived in extended-hours trading.
“Global air passenger traffic growth and airplane demand remain strong, but the air cargo market recovery that began in late 2013 has stalled in recent months and slowed demand for the 747-8 Freighter,” said Ray Conner, Boeing vice chairman and president and CEO of Boeing Commercial Airplanes, in a statement.
Starbucks’ stock also slumped after hours when the quick service coffee chain reported disappointing sales, particularly in China and Europe. The company reported first-quarter earnings of 46 cents per share on $5.37 billion in sales, down 29 percent and up 12 percent from the previous year, respectively.
Earnings beat Wall Street’s estimate of 45 cents per share, but revenue fell short of the $5.39 billion predicted by Thomson Reuters. To top it off, comparable-stores-sales growth came in at 5 percent in the China and Asia Pacific region and 6 percent in Europe — missing estimates in both areas.
Shares of credit-card company American Express whipsawed after the closing bell, settling down despite beating analysts’ earnings estimates. Earnings per share, excluding certain items, came in at $1.23 on $8.39 billion in revenue — above the $1.12 a share on $8.34 billion in revenue expected by Thomson Reuters. But both figures came in well below the year-ago figures of $1.39 per share on $9.1 billion in sales, due in part to strong appreciation of the U.S. dollar, the company said.
Schlumberger ticked up in extended hours after the oilfield services company announced a $10 billion share buyback program. The company’s earnings came in 2 cents above estimates at an adjusted 65 cents per share, while revenue was in line at $7.7 billion. Still, Schlumberger saw significant headwinds in its North American business and will be slashing headcounts this year as energy prices languish.
Fellow energy company Valero was also bolstered after the bell when it said it would increase its regular cash dividend by 20 percent. The increase raises the annualized cash dividend rate on Valero’s common stock to $2.40 per share, the company said.
And Intuitive Surgical poked into the green after the regular session. The corporation, which manufactures robotic surgical systems, reported fourth quarter 2015 revenue of $677 million, an increase of about 13 percent, adjusted, compared with this time last year. Procedures using its flagship product, da Vinci Surgical Systems, grew about 15 percent year-over-year.