Morgan Stanley Net Doubles on Late Year Rally, UnitedHealth Net Surges

Mukesh Buch
17 Jan, 2017
New York City

Bank of The Ozarks net soared 71%. Comerica net surged 41%. GM plans to invest $1 billion in its U.S. plants to create 1,000 jobs. Morgan Stanley net doubled after trading revenues jumped on election rally. Progress Software declined after net loss widened. UnitedHealth net surged 46%.

[R]2:10 PM New York – Bank of The Ozarks net soared 71%. Comerica net surged 41%. GM plans to invest $1 billion in its U.S. plants to create 1,000 jobs. Morgan Stanley net doubled after trading revenues jumped on election rally. Progress Software declined after net loss widened. UnitedHealth net surged 46%.[/R]

Tollbooth Index gained 49.89 or 0.4% to 11,386.17.

Earnings Review

American Apparel Inc ((APPCQ)), the bankrupt fashion retailer started to lay off its 2,400 staffs after Canada-based apparel maker Gildan Activewear Inc withdrew to buy some of retailer''s manufacturing operations.

The retailer filed bankruptcy protection for second time in November with about $177 million in debt as the retailer struggled to turnaround the company.

Bank Of The Ozarks Inc ((OZRK)) slumped 4.3% or $2.28 to $51.18 after the banking services provider stated net interest income in the fourth-quarter ending in December surged 82.9% from a year ago to $194.8 million.

Net income in the quarter soared 70.6% to $87.8 million or 72 cents per diluted share compared to the $51.5 million or 57 cents per share in the same quarter last year.

Comerica Inc ((CMA)) declined 4.3% or $3.01 to $66.78 after the financial services provider said net interest income in the fourth-quarter ending in December jumped 5.1% from a year ago to $455 million.

Net income in the quarter surged 41.4% to $164 million or 92 cents per diluted share compared to the $116 million or 64 cents per share in the same quarter last year.

The lender said provision for credit losses in the quarter increased to $35 million compared to the $16 million in the third quarter but fell from $60 million in the same period a year ago.

General Motors Company ((GM)) rose 27 cents to $37.61 on media reports the automobiles maker plans to invest $1 billion in its U.S. plants after President Donald Trump criticized “automakers” for importing vehicles from Mexico.

General Motors’ investment is expected to create 1,000 blue and white-collar jobs after the U.S. President-elect Donald Trump proposed border adjustment tax on the company for importing compact Chevrolet.

Morgan Stanley ((MS)) dropped 2.2% or 97 cents to $42.84 after the investment banking and brokerage services provider reported revenues in the fourth-quarter ending in December jumped 16.9% from a year ago to $9 billion.

Net income in the quarter doubled to $1.5 billion or 81 cents per diluted share compared to the $753 million or 43 cents per share in the same quarter last year.

Morgan Stanley said fixed income and trading revenues jumped $1.5 billion from $550 million and sales and trading revenues soared 39% to $3.2 billion from a year ago.

""""We are optimistic about opportunities in 2017 and beyond,"""" chairman and chief executive officer James P. Gorman said.

Progress Software Corporation ((PRGS)) tumbled 12.2% or $3.95 to $28.30 after the software developer said revenues in the fourth-quarter ending in December advanced 4% from a year ago to $117.7 million.

Net loss in the quarter widened to $73.8 million or $1.52 per diluted share compared to the $9.5 million or 19 cents per share in the same quarter last year.

UnitedHealth Group Inc ((UNH)) decreased 1.3% or $2.06 to $159.74 after the diversified healthcare services provider reported revenues in the fourth-quarter ending in December rose 2.6% from a year ago to $47.5 billion.

Net income in the quarter surged 46.1% to $1.9 billion or $1.96 per diluted share compared to the $1.3 million or $1.26 per share in the same quarter last year.

The healthcare services provider reaffirmed revenues in fiscal 2017 in the range of $197 billion to $199 billion and earnings per share between $8.75 and $9.05 and cash flows in the range of $11.5 billion to $12 billion.