J&J in Trouble, Oracle and Red Hat Beat Earnings

J&J in Trouble, Oracle and Red Hat Beat Earnings

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The health care sector fell for a second day after a Texas federal judge on Friday declared the Affordable Care Act, the health protection system named “Obamacare”, was unconstitutional. The judge pointed to a provision compelling US citizens to subscribe to health insurance. Donald Trump, who had tried to abolish the Obamacare early in his presidential term, welcomed via Twitter this “great news for America!”.

Johnson & Johnson announced a $5 billion share buyback program and reaffirmed its 2018 targets of earnings per share of $8.13 to $8.18 with revenues between $81 and $81.4 billion. JNJ’s stock lost 13% in just two sessions after a Reuters investigation revealed that the group’s management had known for decades that its baby talcs contained asbestos, suspected to have caused cancer in thousands of its clients.

Oracle released its second quarter fiscal results. Profit is $2.33 billion ($0.61 per share), compared with $2.21 billion ($0.52 per share) a year earlier. On an adjusted basis, earnings per share amounted to $0.80, up 16%. Revenues were $9.56 billion, against $9.59 billion a year earlier. Analysts on average expected a quarterly EPS of $0.78, for revenues of $9.5 billion. “Cloud services and license support” revenue was $6.64 billion, up from $6.46 billion in the same period last year, and just over $6.6 billion in consensus.

Boeing announced an increase in its dividend of 20% to $2.055 per share. The US aerospace giant has authorized a $20 billion share buyback program, compared to the previous year’s $18 billion approved by the board of directors.

CBS former CEO Leslie Moonves, who resigned in September after accusations of sexual harassment, allegedly committed “serious misconduct” justifying his dismissal, according to the group, which will therefore not pay him the $120 million in compensation claimed.

Red Hat, which is the subject of an IBM takeover bid, announced its third quarter results exceeding market expectations. Over the period, net income stood at $95 million and 51 cents per share, for an adjusted EPS of 96 cents compared to a consensus of 87 cents. The leader in open source software announced quarterly revenues of $847 million, against $854 million consensus.

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I handle much of news coverage for tech stocks, and occasionally cover companies in different sectors. In the past, I've written for other financial sites and published independent investment research, primarily on tech companies. I have a B.A. in Economics from Columbia University. I'm based out of San Diego, but grew up in Southern New Jersey. I play basketball and tennis in my spare time, am a long-time (and long-suffering) fan of Philadelphia's sports teams, and alternate daily between using an iPad Air, a Galaxy Note 3, and one or two Windows PCs.

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