BNY Mellon, United Tech, Verizon Jump; Amsurg, Harley-Davidson, IBM Fall

Mukesh Buch
20 Oct, 2015
New York City

Yum! Brands plans to spin off its China operation. Team Health rejected takeover proposal from Amsurg. IBM revenues declined. BNY Mellon profit and revenues plunged. Harley-Davidson net declined. Lockheed Martin lifted sales forecast. United Technologies net tumbled.

[R]12:00 PM New York – Yum! Brands plans to spin off its China operation. Team Health rejected takeover proposal from Amsurg. IBM revenues declined. BNY Mellon profit and revenues plunged. Harley-Davidson net declined. Lockheed Martin lifted sales forecast. United Technologies net tumbled.[/R]

Tollbooth Index decreased 38.88 or 0.4% to 10,641.35.

Earnings Review

Amsurg Corp ((AMSG)) plunged 5.8% or $4.50 to $73.59 after the ambulatory surgery centers operator proposed to merge with Team Health Holdings, Inc with equal partnership ratio.

Team Health rejected the $5.17 billion “unsolicited” takeover proposal and said the proposal undervalues the company.

Team Health board reviewed and rejected the proposal for cash-and-stock offer of $71.47 per share, a premium of 36% the closing price of yesterday.

Team Health Holdings LLC stock surged 14% to $59.85.

The Bank of New York Mellon Corporation ((BK)) jumped 2.8% or $1.11 to $41.28 after the financial services provider reported total revenues in the third-quarter ending in September plunged 17.8% from a year ago to $3.79 billion.

Net income in the quarter declined 23.4% to $820 million or 74 cents per diluted share compared to $1.07 billion or 93 cents from the same quarter last year.

As of September 30, asset under management was $1.63 trillion and assets under custody increased 1% to $28.5 trillion.

Harley-Davidson Inc ((HOG)) plunged 15.9% or $8.88 to $47.15 after the motorcycle maker said revenues in the third-quarter ending in September rose 1.5% from a year ago to $1.32 billion.

Net income in the quarter declined 6.5% to $140.3 million compared to $150.1 million and diluted earnings per share were flat at 69 cents from the same quarter last year.

International Business Machines Corp ((IBM)) slumped 5.8% or $8.60 to $140.62 after the technology company reported revenues in the third-quarter ending in September tumbled 13.9% from a year ago to $19.28 billion.

Net income in the quarter surged to $2.95 billion or $3.01 per diluted share compared to $18 million or 2 cents from the same quarter last year.

The company said last year results included pre-tax charges of $4.7 billion related to its chip operations Microelectronics sold to Globalfoundries, a unit of the government of Abu Dhabi.

IBM lowered diluted earnings per share forecast for the year between $13.25 and $14.25 from the earlier estimated range between $15.75 and $16.50.

Lockheed Martin Corporation ((LMT)) slipped 1.4% or $2.87 to $207.77 after the security and aerospace company said revenues in the third-quarter ending in September jumped 3.1% from a year ago to $11.46 billion.

Net income in the quarter fell 2.6% to $865 million or $2.77 per diluted share compared to $888 million or $2.76 from the same quarter last year.

The company lifted sales forecast for the year to $45 billion from the previous guidance of $43.50 billion to $45 billion.

Travelers Companies Inc ((TRV)) jumped 2.6% or $2.73 to $109.05 after the personal property and casualty insurance services provider stated total revenues in the third-quarter ending in September slid 1% from a year ago to $6.79 billion.

Net income in the quarter rose 1% to $928 million or $2.97 per diluted share compared to $919 million or $2.69 from the same quarter last year.

United Technologies Corporation ((UTX)) soared 5.5% or $5.06 to $97.11 after the aerospace products maker reported sales in the third-quarter ending in September dropped 6% from a year ago to $13.79 billion.

Net income in the quarter tumbled 26.5% to $1.36 billion or $1.61 per diluted share compared to $1.85 billion or $1.93 from the same quarter last year.

The company announced a new share repurchase program for as much as $12 billion, including the $6 billion using the net proceeds from the Sikorsky sale.

Verizon Communications Inc ((VZ)) gained 1.8% or 81 cents to $45.50 after the wireless communication services provider reported total revenues in the third-quarter ending in September soared 5% from a year ago to $33.16 billion.

Net income in the quarter jumped 9.9% to $4.17 billion or 99 cents per diluted share compared to $3.79 billion or 89 cents from the same quarter last year.

In the quarter, Verizon added 1.3 million new monthly wireless subscribers and total retail connections rose 4.3% to 110.8 million.

Yum! Brands, Inc ((YUM)) gained 2.6% or $1.88 to $73.58 after the quick-services restaurant operator plans to spin off its China operation as an independent franchisee of the company by the end of next year.

The transaction is expected to close by the end of 2016.