BNY Mellon Net Surges; American Airlines, eBay, Verizon Net Plunge

Mukesh Buch
20 Oct, 2016
New York City

American Airlines net plunged 56%. BNY Mellon profit surged 19%. Danaher net tumbled 72%. eBay net plummeted 23%. Illinois Tool net jumped 5%. Verizon profit plunged 10% on 7% decline in revenues. Walgreens net surged.

[R]2:10 PM New York – American Airlines net plunged 56%. BNY Mellon profit surged 19%. Danaher net tumbled 72%. eBay net plummeted 23%. Illinois Tool net jumped 5%. Verizon profit plunged 10% on 7% decline in revenues. Walgreens net surged.[/R]

Tollbooth Index slipped 49.86 or 0.5% to 10,883.34.

Earnings Review

American Airlines Group Inc ((AAL)) slipped 1.6% or 65 cents to $39.98 after the airline said total revenues in third-quarter ending in September fell 1.1% from a year ago to $10.6 billion.

Net income in the quarter plunged 56.4% to $737 million or $1.40 per diluted share compared to the $1.7 billion or $2.49 per share from the same quarter last year.

Bank of New York Mellon Corp ((BK)) jumped 3.2% or $1.31 to $41.74 after the banking and investment services provider reported total revenues in third-quarter ending in September advanced 4% from a year ago to $3.9 billion.

Net income in the quarter surged 18.8% to $974 million or 90 cents per diluted share compared to the $820 million or 74 cents per share from the same quarter last year.

The bank said non-interest expenses in the quarter fell to $2.64 billion and from the second quarter, assets under management jumped 3.1% to $1.72 trillion.

The bank estimated full-year cost may decline up to 2% and expenses may be ""flat to down"" compared to the 2015.

Danaher Corporation ((DHR)) advanced 3.1% or $2.36 to $79.52 after the medical, industrial and commercial equipment maker said revenues in third-quarter ending in September soared 17.5% from a year ago to $4.1 billion.

Net income in the quarter tumbled 72% to $391.6 million or 56 cents per diluted share compared to the $1.4 billion or $2.01 per share from the same quarter last year.

Danaher reaffirmed fourth quarter diluted earnings per share between 85 cents and 89 cents and full-year diluted net earnings per share in the range of $2.86 to $2.90.

The professional products maker said acquisition of Cepheid and Phenomenex are expected to close in the fourth-quarter of this year.

eBay Inc ((EBAY)) declined 10.6% or $3.45 to $29.07 after the online marketplace operator reported net revenues in the third-quarter ending in September advanced 6% from a year ago to $2.2 billion.

Net income in the quarter plunged 23.4% to $413 million or 36 cents per diluted share compared to the $539 million or 45 cents per share from the same quarter last year.

eBay forecasted net revenue in the fourth-quarter between $2.36 billion and $2.41 billion, growth of 4% to 6% and diluted earnings per share in the range of $1.05 to $1.15.

The online marketplace operator estimated full year net revenue between $8.95 billion and $9 billion, an increase between 6% and 7% and diluted earnings per share in the range of $2.22 to $2.32.

Illinois Tool Works Inc ((ITW)) slipped 1.9% or $2.28 to $113.44 after the industrial products and equipment maker reported total revenues in third-quarter ending in September increased 4% from a year ago to $3.5 billion.

Net income in the quarter jumped 4.7% to $535 million or $1.50 per diluted share compared to the $511 million or $1.39 per share from the same quarter last year.

The industrial products maker estimated diluted earnings per share in the fourth-quarter between $1.31 and $1.41, an increase of 11%.

In the fiscal 2016, the tools maker forecasted diluted earnings per share in the range of $5.56 to $5.66.

Verizon Communications Inc ((VZ)) dropped 2.7% or $1.34 to $49.04 after the voice, data and video services provider said revenues in third-quarter ending in September declined 6.7% from a year ago to $30.9 billion.

Net income in the quarter plunged 10.2% to $3.7 billion or 89 cents per diluted share compared to the $4.2 billion or 99 cents per share from the same quarter last year.

Verizon added net 442,000 retail post-paid subscribers, including 357,000 new 4G LTE wireless connections, 90,000 fibre-optic services internet net additions and 36,000 fibre-optic services for video services.

In a interview, chief financial officer Fran Shammo said “still evaluating what the data breach means for the Yahoo transaction” and ""we have to wait to see and get facts before any final decision is made.""

Walgreens Boots Alliance Inc ((WBA)) increased 3.6% or $2.81 to $79.98 after the drugstores operator said sales in the fourth-quarter ending in September slid 0.4% from a year ago to $28.6 billion.

Net income in the quarter surged to $1.03 billion or 95 cents per diluted share compared to the $26 million or 2 cents per share from the same quarter last year.

The drugs chain said profit increase was mainly due to cost cutting and the retailer is also working on cutting $1.5 billion in costs by the end of fiscal 2017, including closing of 200 stores.

The company now expect acquisition of Rite Aid to close on January 27, three months later than planned.

Walgreen said adjusted operating income increased 31.6% to $208 million, up 39.2%, of which 31.6 percentage points were due to equity earnings in AmerisourceBergen.

Walgreens forecasted earnings per share in 2017 between $4.85 and $5.20.