Bank of America Beat Earnings, J&J, Lockheed Martin Lifted Outlook

Mukesh Buch
18 Jul, 2017
New York City

Bank of America profit soared on higher interest rate income and rising deposits. Goldman Sachs slumped on weak bond trading revenue. Harley-Davidson net plunged and motorcycle maker lowered shipment forecast. J&J lifted fiscal 2017 outlook. Netflix surged.

[R]3:10 PM New York – Bank of America profit soared on higher interest rate income and rising deposits. Goldman Sachs slumped on weak bond trading revenue. Harley-Davidson net plunged and motorcycle maker lowered shipment forecast. J&J lifted fiscal 2017 outlook. Netflix surged.[/R]

Tollbooth Index increased 14.68 to 12,353.10.

Earnings Review

Bank of America Corp ((BAC)) slipped 1.4% or 33 cents to $23.69 after the banking and financial services provider reported total revenues in the second-quarter ending in June jumped 7% from a year ago to $22.8 billion.

Net income in the quarter soared 11.4% to $4.9 billion or 46 cents per diluted share from $4.4 billion or 41 cents in the same quarter last year.

The bank said net interest income increased 9% to $11 billion and sales and trading revenue rose to $3.2 billion and Mobile banking active users surged 13% to 22.9 million.

Total average deposit increased 4%, to $1.26 trillion and average loan in business segments rose 5% to $827 billion.

Goldman Sachs Group Inc ((GS)) slumped 2.5% or $5.67 to $223.59 after the securities and investment banking services provider said total revenues in the second-quarter ending in June fell 1% from a year ago to $7.9 billion.

Net income in the quarter were flat from a year ago at $1.63 billion and diluted earnings per share increased to $3.95 from $3.72 in the same quarter last year.

The investment banking services provider said bond trading revenue plunged 40% to $1.16 billion and revenue in investment banking segment fell 3% to $1.73 billion and net revenues in institutional client services declined 17% to $3.05 billion.

Harley-Davidson Inc ((HOG)) plunged 10.1% or $5.23 to $46.78 after the motorcycle manufacturer stated revenues in the second-quarter ending in June fell 4.8% from a year ago to $1.8 billion.

Net income in the quarter declined 7.7% to $258.9 million or $1.48 per diluted share from $280.4 million or $1.55 in the same quarter last year.

In the third quarter, the motorcycle maker estimated shipments in the range of 39,000 motorcycles to 44,000 motorcycles, approximately 10% to 20% lower from a year ago period.

Harley-Davidson lowered full-year motorcycle shipments forecast between 241,000 motorcycles and 246,000 motorcycles, approx 6% to 8% drop from fiscal 2016.

Johnson & Johnson ((JNJ)) gained 1.2% or $1.54 to $133.69 after the healthcare products maker reported sales in the second-quarter ending in June rose 2% from a year ago to $18.8 billion.

Net income in the quarter declined 5% to $3.8 billion or $1.40 per diluted share from $4 billion or $1.43 in the same quarter last year.

The healthcare products maker said domestic sales rose 1.6% and international sales grew 2.3% and sales in medical-devices business jumped 4.9% to $6.73 billion sales in consumer products segment increased 1.7% to $3.48 billion.

Johnson & Johnson lifted fiscal 2017 revenues forecast in the range of $75.8 billion to $76.1 billion from the earlier estimated range between $75.4 billion and $76.1 billion and adjusted earnings per share between $7.12 and $7.22 from the previously forecasted range of $7 to $7.15.

Lockheed Martin Corporation ((LMT)) increased 1.1% or $3.13 to $291.50 after the security and aerospace products maker said net sales in the second-quarter ending in June soared 9.5% from a year ago to $12.7 billion.

Net income in the quarter slumped 7.6% to $3.8 billion or $3.23 per diluted share from $1 billion or $3.32 in the same quarter last year.

The defense contractor lifted fiscal 2017 sales forecast between $49.8 billion to $51 billion from the earlier estimated range of $49.5 billion to $50.7 billion and earnings per share between $12.30 and $12.60 from the previously forecasted range of $12.15 to $12.45.

Netflix Inc ((NFLX)) surged 14.2% or $23.08 to $184.75 after the video streaming services provider reported revenues in the second-quarter ending in June jumped 33.3% from a year ago to $2.8 billion.

Net income in the quarter soared 60.8% to $66 million or 15 cents per diluted share from $41 million or 9 cents in the same quarter last year.

Netflix said streaming membership in the quarter jumped to 104 million from 99 million as international members surpassed domestic members.