Qualcomm in $38 B Deal with NXP; Colgate-Palmolive, Ford Net Fall

Mukesh Buch
27 Oct, 2016
New York City

Bristol-Myers lifted fiscal outlook. Colgate-Palmolive net and revenues slumped after sales in Latin America plunged 13%. Ford profit tumbled 56%. Qualcomm agreed to buy NXP Semiconductors for $38 billion.

[R]2:10 PM New York – Bristol-Myers lifted fiscal outlook. Colgate-Palmolive net and revenues slumped after sales in Latin America plunged 13%. Ford profit tumbled 56%. Qualcomm agreed to buy NXP Semiconductors for $38 billion.[/R]

Tollbooth Index decreased 42.47 or 0.4% to 10,800.14.

Earnings Review

Bristol-Myers Squibb Company ((BMY)) surged 7.3% or $3.60 to $52.87 after the biopharmaceutical products maker said revenues in the third-quarter ending in September soared 21% from a year ago to $4.9 billion.

Net income in the quarter jumped 70% to $1.2 billion or 72 cents per diluted share compared to the $706 million or 42 cents per share from the same quarter last year.

Bristol-Myers lifted earnings per share forecast in the year between $2.62 and $2.72 compared to the earlier estimated range of $2.43 - $2.53 and worldwide revenues to increase in the high-teens.

Colgate-Palmolive Company ((CL)) fell 67 cents to $70.60 after the consumer products maker reported net sales in the third-quarter ending in September dropped 3.5% from a year ago to $3.9 billion.

Net income in the quarter slumped 3.3% to $702 million or 78 cents per diluted share compared to the $726 million or 80 cents per share from the same quarter last year.

Colgate said sales in North America increased 1% but sales in Latin America plunged 13% and in Europe and Asia Pacific decreased by 1.5% to each but net sales in Africa/Eurasia Net sales increased 1.5%.

Ford Motor Company ((F)) slipped 1.4% or 16 cents to $11.72 after the automobiles manufacturer said revenues in the third-quarter ending in September declined 5.8% from a year ago to $35.9 billion.

Net income in the quarter tumbled 56.5% to $957 million or 24 cents per diluted share compared to the $2.2 billion or 55 cents per share from the same quarter last year.

Chief financial officer Bob Shanks said that excluding recall costs, operating margin of 8.4% in North America and South America unit loss widened to $295 million from operations before taxes from $163 million loss in a year ago.

Ford forecasted adjusted 2016 pre-tax profit of about $10.2 billion from $10.8 billion in fiscal 2015.

International Paper Co ((IP)) dropped 1.9% or 90 cents to $45.26 after the paper and packaging group stated revenues in the third-quarter ending in September plummeted 7% from a year ago to $5.3 billion.

Net income in the quarter plunged 41.8% to $312 million or 75 cents per diluted share compared to the $220 million or 53 cents per share from the same quarter last year.

Qualcomm Inc ((QCOM)) soared 4.7% or $3.18 to $71.38 after the mobile chip maker agreed to buy Netherlands-based NXP Semiconductors NV for $110 per share in cash or an enterprise value of about $38 billion. Including debt, the deal is worth about $47 billion.

The combine annual revenues are estimated to exceed $30 billion and the transaction is expected to close by the end of 2017.

United Parcel Service, Inc ((UPS)) slipped 89 cents to $107.75 after the package delivery services provider said revenues in the third-quarter ending in September jumped 4.9% from a year ago to $14.9 billion.

Net income in the quarter increased 1% to $1.27 billion or $1.44 per diluted share compared to the $1.26 billion or $1.39 per share from the same quarter last year.

Separately today, after the package delivery services provider announced that it has ordered 14 new Boeing 747-8 cargo jets to be delivered between 2017 and 2020 to meet increased demand for the company’s air shipping services.