AT&T and Time Warner Explore Merger, Paypal Surges on Outlook

Mukesh Buch
21 Oct, 2016
New York City

GE net declined 20% and lowered revenues forecast. Honeywell net fell but revenues rose. McDonald''s net and comparable sales rose. Moody''s profit jumped 10%. Parker-Hannifin net soared 8% but revenues fell. Paypal lifted revenue forecast.

[R]2:10 PM New York – GE net declined 20% and lowered revenues forecast. Honeywell net fell but revenues rose. McDonald''s net and comparable sales rose. Moody''s profit jumped 10%. Parker-Hannifin net soared 8% but revenues fell. Paypal lifted revenue forecast.[/R]

Tollbooth Index edged up 2.83 to 10,870.33.

Earnings Review

AT&T Inc ((T)) slumped 2.8% or $1.11 to $37.53 after Bloomberg reported mobile and digital entertainment services and Time Warner Inc met in recent weeks to discuss various business strategies including a possible merger.

AT&T’s chief executive officer Randall Stephenson plan to transform the company into the media and entertainment group.

General Electric Company ((GE)) dropped 1.9% or 55 cents to $28.52 after the industrial conglomerates reported total revenues in third-quarter ending in September jumped 4% from a year ago to $29.3 billion.

Net income in the quarter declined 20% to $1.99 billion or 22 cents per diluted share compared to the $2.51 billion or 25 cents per share from the same quarter last year.

GE lowered its full-year revenue forecast to flat to growth of approx 2% and earnings per share between $1.48 and $1.52 compared to the earlier estimated range of $1.45 to $1.55.

Honeywell International Inc ((HON)) gained 83 cents to $108.97 after the aircraft engines maker said revenues in third-quarter ending in September rose 2% from a year ago to $9.8 billion.

Net income in the quarter fell 1.6% to $1.24 billion or compared to the $1.26 billion and diluted earnings per share was flat at $1.60 from the same quarter last year.

Honeywell forecasted sales in the full-year to increase between 2% and 3% or in the range of $39.4 billion to $39.6 billion and diluted earnings per share jump 8% to 9% or in the range of $6.60 to $6.64.

McDonald''s Corporation ((MCD)) advanced 2.9% or $3.20 to $113.77 after the quick services restaurants operator reported revenues in third-quarter ending in September fell 3% from a year ago to $6.4 billion.

U.S. comparable sales increased 1.3% and global comparable sales jumped 3.5% and comparable sales for the international lead segment increased 3.3%, on strong sales in the U.K., Australia, Canada and Germany.

Third quarter comparable sales rose 1.5% and comparable sales in the leading markets led by strong performance in Japan soared 10.1%.

Net income in the quarter slid 3% to $1.28 billion or $1.50 per diluted share compared to the $1.31 billion or $1.40 per share from the same quarter last year.

Moody''s Corporation ((MCO)) declined 4.3% or $4.62 to $103.47 after the credit ratings provider said revenues in third-quarter ending in September advanced 10% from a year ago to $917.1 million.

Net income in the quarter jumped 10.2% to $255.3 million or $1.31 per diluted share compared to the $231.6 million or $1.14 per share from the same quarter last year.

Moody’s said revenues in the investor service segment soared 12% to $612.3 million while revenues in analytics business jumped 6% to $304.8 million.

In the fiscal 2016, Moody’s forecasted earnings per share in the range of $4.76 to $4.86.

Parker-Hannifin Corp ((PH)) increased $1.09 to $123.75 after the industrial machinery and equipment maker reported revenues in first-quarter ending in September declined 4.5% from a year ago to $2.74 billion.

Net income in the quarter soared 8% to $210.2 million or $1.55 per diluted share compared to the $195 million or $1.41 per share from the same quarter last year.

The industrial equipment maker estimated earnings per share in the year between $6.40 and $7.10.

Paypal Holdings Inc ((PYPL)) surged 9% or $3.63 to $43.72 after the payments processing services provider stated revenues in third-quarter ending in September fell 18.1% from a year ago to $2.67 billion.

Net income in the quarter surged 7.3% to $323 million or 27 cents per diluted share compared to the $301 million or 25 cents per share from the same quarter last year.

PayPal said processed transactions in the quarter jumped 24% to 1.5 billion and total payment volumes surged 25% to $87 billion after the active customer accounts soared 11% to 192 million.

The payments processor services provider lifted revenue forecast for a three-year period to between 16% and 17% from the previous guidance of 15%.