eBay Falls on Weak Outlook; BB&T, Philip Morris, Qualcomm, Verizon Net Drop

Mukesh Buch
20 Apr, 2017
New York City

American Express net declined 13%. BNY Mellon net jumped 10%. BB&T net tumbled 28%. Danaher net plunged 33% but reaffirmed earnings forecast. eBay fell on weak outlook. Philip Morris net slumped. Qualcomm net and revenues plunged. Travelers net declined. Verizon net tumbled.

[R]2:10 PM New York – American Express net declined 13%. BNY Mellon net jumped 10%. BB&T net tumbled 28%. Danaher net plunged 33% but reaffirmed earnings forecast. eBay fell on weak outlook. Philip Morris net slumped. Qualcomm net and revenues plunged. Travelers net declined. Verizon net tumbled.[/R]

Tollbooth Index soared 169.32 or 1.5% to 11,802.02.

Earnings Review

American Express Company ((AXP)) jumped 4.5% or $3.40 to $78.95 after the credit card services provider reported total revenues in the first-quarter ending in March fell 2% from a year ago to $7.9 billion.

Net income in the quarter declined 13% to $1.2 billion or $1.34 per diluted share from $1.4 billion or $1.45 in the same quarter last year.

In the quarter, the credit card services provider added net new 1.7 million new card members in the U.S. and 2.6 million worldwide.

“We acquired 2.6 million new cards across our global issuing businesses during the quarter and continued to broaden our reach,” said chairman and chief executive officer Kenneth I. Chenault.

The member services provider forecasted for fiscal 2017 diluted earnings per share in the range of $5.60 to $5.80.

The Bank of New York Mellon Corp ((BK)) slipped 1.6% or 73 cents to $46.13 after the investment services provider said total revenues in the first-quarter ending in March advanced 3% from a year ago to $3.8 billion.

Net income in the quarter jumped 9.5% to $880 million or 83 cents per diluted share from $804 million or 73 cents in the same quarter last year.

The BNY Mellon said as of March 31, assets under custody jumped 5% to $30.6 trillion.

The management services provider estimated new assets under custody and/or administration wins in asset servicing in the quarter of $109 billion and assets under management soared 5% to $1.73 trillion.

BB&T Corporation ((BBT)) gained 1.5% or 62 cents to $43.25 after the banking and financial services provider reported total revenues in the first-quarter ending in March advanced 3.1% from a year ago to $1.8 billion.

Net income in the quarter tumbled 28.3% to $378 million or 46 cents per diluted share from $527 million or 67 cents in the same quarter last year.

The financial services provider said average deposits in the quarter rose to $161.4 billion compared to $160.1 billion from a year ago period.

Average loans and leases for investment were slid to $142 billion compared to $142.3 billion in the same period a year ago.

Danaher Corporation ((DHR)) slumped 3.1% or $2.69 to $83.71 after the medical, industrial and commercial products maker said total revenues in the first-quarter ending in March soared 7.7% from a year ago to $4.2 billion.

Net income in the quarter plunged 33.3% to $506.1 million or 69 cents per diluted share from $758.4 million or 84 cents in the same quarter last year.

In the second-quarter, Danaher reaffirmed diluted earnings per share estimate in the range of 77 cents to 80 cents.

The manufacturing company forecasted diluted earnings per share in the fiscal 2017 in the range of $3.13 to $3.23.

eBay Inc ((EBAY)) declined 3.5% or $1.18 to $32.67 after the online marketplace provider said net revenues in the first-quarter ending in March rose 4% from a year ago to $2.2 billion.

Net income in the quarter fell 2% to $538 million or 49 cents per diluted share from $550 million or 47 cents in the same quarter last year.

eBay estimated revenues in the second-quarter between $2.28 billion and $2.32 billion and diluted earnings per share in the range of 20 cents to 40 cents.

In the full-year, revenues forecasted in the range of $9.3 billion to $9.5 billion and diluted earnings per share in the range of $1.85 - $2.10.

Philip Morris International Inc ((PM)) dropped 3.6% or $4.15 to $109.75 after the cigarettes and tobacco products maker reported in the first-quarter ending in March fell 1.4% from a year ago to $16.6 billion.

Net income in the quarter slumped 3.9% to $1.6 billion or $1.02 per diluted share from $1.5 billion or 98 cents in the same quarter last year.

The cigarettes maker said total cigarette and heated tobacco unit shipment volume of declined 9.4% to 178.0 billion and cigarette shipment volume plummeted 11.5% to 173.6 billion units.

Qualcomm, Inc ((QCOM)) fell 14 cents to $52.46 after the communication network services provider said revenues sales in the second-quarter ending on March 26 declined 10% from a year ago to $5 billion.

Net income in the quarter plummeted 36% to $749 million or 50 cents per diluted share from $1.2 billion or 78 cents in the same quarter last year.

Qualcomm lowered revenues forecast in the third-quarter between $5.3 billion and $6.1 billion from reported revenues of $6 billion and diluted earnings per share in the range of 67 cents to 92 cents from reported 97 cents in a year ago period.

Travelers Companies Inc ((TRV)) decreased 1.6% or $1.94 to $118.46 after the property and casualty insurance services provider reported total reported revenues in the first-quarter ending in March advanced 4% from a year ago to $6.9 billion.

Net income in the quarter declined 11% to $614 million or $2.16 per diluted share from $698 million or $2.33 in the same quarter last year.

Verizon Communications Inc ((VZ)) fell 1.1% or 54 cents to $48.39 after the wireless communications and entertainment services provider said revenues in the first-quarter ending in March dropped 7.3% from a year ago to $29.8 billion.

Net income in the quarter plunged 19.8% to $3.6 billion or 84 cents per diluted share from $4.4 billion or $1.06 in the same quarter last year.

In the quarter, Verizon lost 307,000 retail postpaid subscribers while retail postpaid connections increased 1.2% to 108.5 million, and retail prepaid connections rose 0.5% to 5.4 million.