IBM Revenue Decline Extends in 5th Year; Morgan Stanley Beat Estimates

Mukesh Buch
19 Jul, 2017
New York City

Crown Castle plans to acquire Lightower Fiber Networks for about $7.1 billion. Grainger profit tumbled but reaffirmed fiscal 2017 forecast. Morgan Stanley profit trading revenues lead industry surpassing Goldman Sachs. United Continental net surged.

[R]12:30 PM New York – Crown Castle plans to acquire Lightower Fiber Networks for about $7.1 billion. Grainger profit tumbled but reaffirmed fiscal 2017 forecast. Morgan Stanley profit trading revenues lead industry surpassing Goldman Sachs. United Continental net surged.[/R]

Tollbooth Index increased 33.17 or 0.3% to 12,397.44.

Earnings Review

Crown Castle International Corp ((CCI)) dropped 2.6% or $2.48 to $94.16 after the wireless communication tower operator said total revenues in the second-quarter ending in June jumped 8.1% from a year ago to $1 billion.

Net income in the quarter soared 49.3% to $112.1 million or 31 cents per diluted share from $75.1 million or 22 cents in the same quarter last year.

Crown Castle forecasted third-quarter rental revenues between $888 million and $893 million and net income in the range of $90 million to $110 million.

Separately today, the wireless communication tower operator said it plans to acquire privately held telecom tower operator LTS Group Holdings LLC or Lightower Fiber Networks for about $7.1 billion in cash from Berkshire Partners, Pamlico Capital and other investors.

In fiscal 2017, Crown Castle estimated site rental revenue from Lightower between $850 million and $870 million.

Moreover, Crown Castle announced the commencement of concurrent public offerings of up to $3.25 billion common shares and $1.5 billion of Mandatory Convertible Preferred Stock.

W W Grainger Inc ((GWW)) plunged 6.3% or $10.96 to $163.52 after the industrial maintenance services provider said revenues in the second-quarter ending in June rose 2% from a year ago to $2.6 billion.

Net income in the quarter declined 43.4% to $98 million or $1.67 per diluted share from $173 million or $2.79 in the same quarter last year.

Grainger reaffirmed fiscal 2017 sales growth estimate in the range of 1% to 4% and earnings per share between $10 and $11.30.

International Business Machines Corp ((IBM)) plummeted 4.1% or $6.36 to $147.64 after the information technology company said revenues in the second-quarter ending in June dropped 5% from a year ago to $19.3 billion.

Net income in the quarter dropped 6.8% to $2.3 billion or $2.48 per diluted share from $2.5 billion or $2.61 in the same quarter last year.

The technology services provider said cloud revenues in the quarter surged 15% to $3.9 billion and strategic imperatives revenue increased 5% to $8.8 billion.

IBM forecasted fiscal 2017 GAAP diluted earnings per share of at least $11.95.

Morgan Stanley ((MS)) gained 2.3% or $1.05 to $46.19 after the investment banking and brokerage services provider reported net revenues in the second-quarter ending in June jumped 6.7% from a year ago to $9.5 billion.

Net income in the quarter soared 12.5% to $1.8 billion or 87 cents per diluted share from $1.6 billion or 75 cents in the same quarter last year.

The investment banker said trading revenues in the quarter advanced 7% to $2.9 billion and bond trading revenue dropped 4% to $1.2 billion.

The investment brokerage firm plans to declare a 25 cent quarterly dividend in the third-quarter, an increase of 5 cents and increase share repurchases from $3.5 billion to up to $5 billion of shares in the next four quarters.

M&T Bank Corporation ((MTB)) slumped 2.3% or $3.86 to $161.62 after the banking and financial services provider reported total revenues in the second-quarter ending in June increased 6% from a year ago to $1.03 billion.

Net income in the quarter soared 13% to $381 million or $2.35 per diluted share from $336 million or $1.98 in the same quarter last year.

U.S. Bancorp ((USB)) increased 43 cents to $52.06 after the financial services provider said total revenues in the second-quarter ending in June rose 0.7% from a year ago to $5.49 billion.

Net income in the quarter slid 0.3% to $1.43 billion or 85 cents per diluted share from $1.43 billion or 83 cents in the same quarter last year.

United Continental Holdings Inc ((UAL)) plunged 4.9% or $3.88 to $75.02 after the airlines operator stated revenues in the second-quarter ending in June jumped 6.4% from a year ago to $10 billion.

Net income in the quarter surged 39.1% to $818 million or $2.66 per diluted share from $588 million or $1.78 in the same quarter last year.