BofA Net Jumped 6%, Supervalu Sells Discount Unit for $1.4 B

Mukesh Buch
17 Oct, 2016
New York City

Bank of America said quarterly net jumped 7%. Charles Schwab profit and revenues surged. Hasbro net soared 24% on 14% jump in revenues. J B Hunt net declined 5%. Lennox Intl net and revenues rose 6% but lowered fiscal outlook. Supervalu agreed to sell Save-A-Lot for $1.4 billion.

[R]2:10 PM New York – Bank of America said quarterly net jumped 7%. Charles Schwab profit and revenues surged. Hasbro net soared 24% on 14% jump in revenues. J B Hunt net declined 5%. Lennox Intl net and revenues rose 6% but lowered fiscal outlook. Supervalu agreed to sell Save-A-Lot for $1.4 billion.[/R]

Tollbooth Index fell 12.94 to 10,863.96.

Earnings Review

Bank of America Corp ((BAC)) slid 3 cents to $15.97 after the financial services provider said revenues in the third-quarter ending in September advanced 3.1% from a year ago to $21.64 billion.

Net income in the quarter jumped 6.6% to $4.45 billion or 41 cents per diluted share compared to the $4.18 billion or 38 cents per share from the same quarter last year.

The bank said non-interest expenses fell 3% or $458 million to $13.5 billion and deposit balances soared 6% to $1.23 trillion and loan balances increased 3% to $905 billion.

In the quarter, mobile banking active users surged 16% to 21.3 million and pre-tax margin in the global wealth and investment management business soared to 25%.

“We grew revenue, reduced expenses and continued to manage risk, resulting in 17% increase in pre-tax earnings,” Brian Moynihan the chief executive officer said.

Charles Schwab Corp ((SCHW)) slumped 2.3% or 71 cents to $31.26 after the investment broker and banker reported revenues in the third-quarter ending in September soared 20% from a year ago to $1.9 billion.

Net income in the quarter surged 34% to $503 million or 35 cents per diluted share compared to the $376 million or 28 cents per share from the same quarter last year.

Charles Schwab said new brokerage accounts opened in the quarter declined to 264,000 from 271,000 in the last quarter but increased from 254,000 in the same period a year ago.

Hasbro, Inc ((HAS)) surged 7.4% or $5.58 to $81.73 and the toy maker stated revenues in third-quarter ending in September jumped 14% from a year ago to $1.68 billion.

Net income in the quarter soared 24% to $257.8 million or $2.03 per diluted share compared to the $207.6 million or $1.64 per share from the same quarter last year.

J B Hunt Transport Services Inc ((JBHT)) fell 1.5% or $1.17 to $78.85 after the transportation and logistics services provider said revenues in the third-quarter ending in September advanced 7% from a year ago to $1.7 billion.

Net income in the quarter dropped 5% to $109.4 million or 97 cents per diluted share compared to the $115.1 million or 99 cents per share from the same quarter last year.

Lennox International Inc ((LII)) slumped 2.6% or $4.10 to $153.52 after the climate control solution provider stated revenues in the third-quarter ending in September increased 6% from a year ago to $1.01 billion.

Net income in the quarter jumped 6.5% to $101.7 million or $2.33 per diluted share compared to the $80.3 million or $1.76 per share from the same quarter last year.

Lennox lowered fiscal 2016 revenue forecast to between 4% and 6% from 3% and 7% and earnings per share in the range of $6.25 to $6.45 compared to the earlier estimated range of $6.45 to $6.85.

Rogers Communications Inc ((RCI)) increased 1% or 43 cents to $41.76 after the communications and media group reported revenues in the third-quarter ending in September rose 3% from a year ago to $3.49 billion.

Net income in the quarter tumbled 52.6% to $220 million or 43 cents per diluted share compared to the $464 million or 90 cents per share from the same quarter last year.

Supervalu Inc ((SVU)) jumped 3.9% or 19 cents to $5.20 after the grocery wholesale distributor said it agreed to sell its Save-A-Lot business to Canada based private equity firm Onex Corp for $1.37 billion.

The deal is expected to close before the end of January 2017.