Verizon Offers More for Yahoo; GE Net Swings to Profit

Mukesh Buch
22 Jul, 2016
New York City

American Airlines tumbled 44%. GE net swung to profit on 15% surge in revenues. Honeywell lowered revenues forecast. Moody''s net fell 2%. Whirlpool net surged 81% on flat revenues. Verizon is said to offer a higher bid beating rivals to acquire core internet business of Yahoo.

[R]1:30 PM New York – American Airlines tumbled 44%. GE net swung to profit on 15% surge in revenues. Honeywell lowered revenues forecast. Moody''s net fell 2%. Whirlpool net surged 81% on flat revenues. Verizon is said to offer a higher bid beating rivals to acquire core internet business of Yahoo.[/R]

Tollbooth Index increased 36.50 or 0.3% to 10,979.89.

Earnings Review

American Airlines Group Inc ((AAL)) jumped 2.7% or 93 cents to $35.90 after the airline company said total revenues in the second-quarter ending in June dropped 4.3% from a year ago to $10.4 billion.

Net income in the quarter tumbled 44.1% to $950 million or $1.68 per diluted share compared to $1.70 billion or $2.41 per share from the same quarter last year.

General Electric Company ((GE)) slumped 2.2% or 72 cents to $31.87 after the diversified industrial conglomerate reported revenues in the second-quarter ending in June soared 15% from a year ago to $33.5 billion.

Net in the quarter swung to profit $2.74 billion or 30 cents per diluted share compared to a net loss of $1.36 billion or 13 cents per share from the same quarter last year.

GE said revenues in industrial businesses dropped 1% to $24.4 billion but reiterated growth in the unit in the second-half between 2% to 4% and group orders slumped 2% to $26.6 billion while total backlog jumped 17% to $320 billion.

Honeywell International Inc ((HON)) declined 3.5% or $4.17 to $114.45 after the industrial conglomerate stated revenues in the second-quarter ending in June rose 2% from a year ago to $10 billion.

Net income in the quarter soared 7.6% to $1.28 billion or $1.51 per diluted share compared to $1.19 billion or $1.66 per share from the same quarter last year.

The company lowered revenues forecast in the year between $40 billion and $40.6 billion from the earlier estimated range of $40.3 billion to $40.9 billion and earnings per share in the range of $6.60 and $6.70 compared to previous guidance between $6.55 and $6.70.

Moody''s Corporation ((MCO)) rose 46 cents to $104.77 after the credit rating services provider said revenues in the second-quarter ending in June increased 1% from a year ago to $928.9 million.

Net income in the quarter fell 2.4% to $255.5 million or $1.30 per diluted share compared to $261.7 million or $1.28 per share from the same quarter last year.

Whirlpool Corporation ((WHR)) gained 2.1% or $3.91 to $186.68 after the home appliances maker reported revenues in the second-quarter ending in June were flat at $5.2 billion compared to a year ago.

Net income in the quarter surged 80.8% to $320 million or $4.15 per diluted share compared to $177 million or $2.21 per share from the same quarter last year.

Verizon Communications Inc ((VZ)) gained 1% or 56 cents to $55.92 after the wireless network services provider is close to buying Yahoo’s core internet business for about $5 billion but the deal is tentative and does not include portfolio of patents and other real estate properties.