GE Net Surges; American Express, Legg Mason, Rockwell Fall

Mukesh Buch
22 Jan, 2016
New York City

American Express net declined 38% on 8% drop in revenues. Boeing plans to cut its production of 747 aircrafts and book an after-tax charge of $569 million. GE net income surged 22%.

[R]11:20 AM New York – American Express net declined 38% on 8% drop in revenues. Boeing plans to cut its production of 747 aircrafts and book an after-tax charge of $569 million. GE net income surged 22%.[/R]

Tollbooth Index jumped 176.71 or 1.8% to 10,143.04.

Earnings Review

American Express Company ((AXP)) tumbled 10.6% or $6.61 to $56.03 after the consumer lending services provider said total revenues in the fourth-quarter ending in December plunged 8% from a year ago to $8.4 billion.

Net income in the quarter declined 38% to $899 million or 89 cents per diluted share compared to $1.45 billion or $1.39 per share from the same quarter last year.

Boeing Co ((BA)) rose $1 to $124.40 after the aerospace company plans to again slow down its production on its 747 line for about six planes per year from twelve per year.

The plane maker will book an after-tax charge of $569 million in its fourth-quarter earnings result.

General Electric Company ((GE)) slipped 1% or 29 cents to $28.29 after the diversified industrial and financial conglomerate reported total revenues in the fourth-quarter ending in December rose 1.4% from a year ago to $33.89 billion.

Net income in the quarter surged 22% to $6.28 billion or 64 cents per diluted share compared to $5.15 billion or 51 cents per share from the same quarter last year

Legg Mason Inc ((LM)) plunged 5.4% or $1.77 to $29.83 after the investment services provider said revenues in the third-quarter ending in December declined 8.3% from a year ago to $659.6 million.

Net in the quarter swung to a loss of $138.6 million or $1.31 per diluted share compared to profit of $64.3 million or 58 cents per share from the same quarter last year.

The company said results included non-cash impairment charges of $371 million related to intangible assets at Permal.

Separately, the investment manager agreed to acquire a majority equity stake of 83% in, a New York- based leading diversified real estate investment firm Clarion Partners for about $585 million.

The deal is expected to close in the second-quarter.

Rockwell Collins, Inc ((COL)) plummeted 5.1% or $4.25 to $81.85 after the aviation and military product maker said sales in the first-quarter ending in December dropped 5% from a year ago to $1.17 billion.

Net income in the quarter tumbled 19.2% to $135 million or $1.02 per diluted share compared to $167 million or $1.24 per share from the same quarter last year.

Rockwell forecasted total sales in the fiscal 2016 between $5.3 billion and $5.4 billion and lifted earnings per share estimate in the range of $5.45 to $5.65 from $5.20 to $5.40 a year ago.

SunTrust Banks, Inc ((STI)) decreased 1.1% or 41 cents to $35.65 after the financial services provider said total interest income in the fourth-quarter ending in December were nearly flat from a year ago to $2.05 billion.

Net income in the quarter soared 23.5% to $467 million or 91 cents per diluted share compared to $378 million or 88 cents per share from the same quarter last year.

Starbucks Corporation ((SBUX)) fell 18 cents to $58.84 after the specialty coffee marketer and retailer stated revenues in the first-quarter ending in December surged 11.9% from a year ago to $5.37 billion.

Global comparable store sales in the quarter jumped 8% and comp store sales in the America soared 9%. China/Asia Pacific comp store sales increased 5%.

Net income in the quarter plunged 30.1% to $687.6 million or 46 cents per diluted share compared to $983.1 million or 65 cents per share from the same quarter last year.