Why Boeing, T-Mobile, Owens Corning & Two Other Stocks Are in Spotlight on Wednesday

All three index futures are in the green today as traders digest the latest earnings releases and expect the end of the Fed’s policy meeting to get an idea regarding the future path of the interest rates.

Among the companies that just reported their latest quarterly results are Boeing Co (NYSE:BA), T-Mobile US Inc (NASDAQ:TMUS), Owens Corning (NYSE:OC), Hess Corp. (NYSE:HES), and General Dynamics Corporation (NYSE:GD). Let’s take a closer look at the performance of each of these companies in the last quarter and see what the investors we track at Insider Monkey think about them.

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Boeing Flies 2% Higher on Earnings Beat

Boeing Co (NYSE:BA) reported an adjusted core-earnings loss of $0.44 per share on revenue of $24.755 billion for its second quarter, beating analyst estimates by $0.48 per share and $760 million, respectively. Boeing reported an adjusted loss due to an aggregate $3.23 per share impact related to the 787 R&D reclassification and charges related to the 747 and KC-46 Tanker programs. Operating cash flow came in at a strong $3.2 billion, while backlog was $472 billion, reflecting nearly 5,700 commercial airplane orders. Management expects adjusted EPS of $6.10-$6.30 for the full year on revenue of $93-$95 billion. Cliff Asness’ AQR Capital Management reported a stake of over 1.1 million shares in Boeing Co (NYSE:BA) at the end of the first quarter.

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America’s Fastest Growing Telecom Continues Growth Streak 

T-Mobile US Inc (NASDAQ:TMUS) shares have rallied 1.7% after the telecom continued its string of strong quarterly growth results by reporting an EPS of $0.25 on revenue of $9.2 billion for the second quarter. Analysts were expecting earnings of $0.05 per share and $170 million less respectively. Sales rose 12.5% year-over-year, powered by 1.9 million total net adds and record-low branded postpaid phone churn of 1.27%. Adjusted EBITDA rose by 35.6% year-over-year to $2.5 billion in the quarter, while management sees Adjusted EBITDA for full year 2016 to be $9.8 billion to $10.1 billion, versus the previous range of $9.7 billion to $10.2 billion. Among the funds we track, 52 funds owned $2.32 billion worth of T-Mobile US Inc (NASDAQ:TMUS)’s stock, which accounted for 7.40% of the float on March 31, versus 50 funds and $2.41 billion, respectively, on December 31.

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On the next page, we examine Owens Corning, Hess Corp, and General Dynamics Corporation.
Owens Earnings Ahead of Estimates

Owens Corning (NYSE:OC)’s stock has surged by over 4% after the company delivered an excellent second quarter, with earnings of $1.29 per share on sales of $1.55 billion, versus analyst estimates of $0.86 and $1.47 billion, respectively. Sales advanced by 9.9% year-over-year, aided by strong roofing and insulation demand due to the robust housing market. In terms of guidance, Owens expects adjusted EBIT of at least $700 million for full year 2016. During the first quarter, the number of funds tracked by Insider Monkey with long positions in Owens Corning went up by four to 41.

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Energy Company’s Results Better than Expected

Hess Corp. (NYSE:HES) is 2% in the red this morning after reporting a loss $1.1 per share on revenue of $1.27 billion for the second quarter. Although sales fell by 34.5% year-over-year, Hess’ top line beat the consensus by $20 million, while the company’s bottom line exceeded analysts’ estimates by $0.13 per share. Hess averaged 313,000 BOE of production per day and the company cut its E&P capex to $485 million for the quarter. Management sees net production of 315,000-325,000 BOEPD excluding Libya and capex of around $2.1 billion for the full year. The number of funds with holdings in Hess Corp. (NYSE:HES) rose by five quarter-over-quarter to 39 at the end of March.

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General Dynamics Reports Mixed Results

Shares of General Dynamics Corporation (NYSE:GD) are moderately higher today after the company reported earnings of $2.44 per share on sales of $7.67 billion for the second quarter. Although revenue missed the consensus estimate by $200 million, General Dynamics’ bottom-line beat the average analyst estimate by $0.13 per share. Operating margin inched up 30 basis points to 14% and the company’s management anticipates full-year EPS will be in the range of $9.20 to $9.70. Among the investors tracked by us, 43 funds had a bullish position in General Dynamics Corporation (NYSE:GD) at the end of the first quarter.

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