Wednesday headlines include Facebook planning more spending, AT&T facing a lawsuit related to throttling of data plans, Sanofi firing its CEO, Gilead reporting slowing sales of Sovaldi and Hartford trying to limit its retirement obligations.
Social network Facebook (FB) said Tuesday that it earned 30 cents per share, or 43 cents per share on an adjusted basis, in the third quarter on revenue of $3.2 billion. Analysts had expected the company to earn 40 cents per share on revenue of $3.12 billion. Looking forward, the company said it expects expenses to increase by 55 to 75 percent in 2015 as it invests in WhatsApp, Oculus and other recent acquisitions that haven’t turned a profit.
Telecommunications giant AT&T (T) is facing a lawsuit brought by the Federal Trade Commission that claims the company sold unlimited data plans, but then slowed the internet speeds of users once they used a certain amount of data. The company says that only about three percent of customers were effected and they were notified by text message before the throttling took place.
The board of directors at French drug maker Sanofi (SNY) fired the company’s CEO Wednesday. The company had warned Tuesday that it expects the growth of its diabetes business to stall in 2015. The board said Chris Viehbacher was let go due to his management style and poor relations with the company’s board.
Drugmaker Gilead Sciences (GILD) said Tuesday that it earned $1.67 per share in the third quarter, or $1.84 cents per share on an adjusted basis. Revenue was $6.04 billion. Analysts had expected the company to earn $1.92 per share on $5.99 billion in revenue. The company said that new regulations from the Affordable Care Act cost it $2.05 per share. The company said sales of Sovaldi, its hepatitis C drug, slowed in the quarter, as doctors anticipated the company’s new treatment for the disease, Harvoni.
Hartford Financial Services Group
Insurer Hartford (HIG) is offering to pay former employees to give up their pension plans. The company offered the payments to 13,500 former workers who haven’t started receiving payments. The company, which has gotten rid of its life insurance and retirement products units, has also offered to pay some clients to give up retirement products.