IBM 22nd Quarterly Decline in a Row; Morgan Stanley, U.S. Bancorp Net Jump

Mukesh Buch
18 Oct, 2017
New York City

Assurant agreed to buy privately held Warranty Group for $2.5 billion. Abbott net swung to profit on strong medical device sales. IBM net declined for the 22nd quarter in a row. Morgan Stanley net soared. M&T Bank net missed the estimate. U.S. Bancorp net jumped on loan growth.

[R]12:40 PM New York – Assurant agreed to buy privately held Warranty Group for $2.5 billion. Abbott net swung to profit on strong medical device sales. IBM net declined for the 22nd quarter in a row. Morgan Stanley net soared. M&T Bank net missed the estimate. U.S. Bancorp net jumped on loan growth.[/R]

Tollbooth Index increased 44.97 or 0.4% to 12,899.18.

Earnings Review

Assurant, Inc ((AIZ)) jumped 4.3% or $4.14 to $100.08 after the multiline insurance services provider agreed to buy privately held The Warranty Group Inc, the underwrites and specialty insurance services provider for about $2.5 billion.

The transaction is expected to close in the first-half of 2018.

Abbott Laboratories ((ABT)) gained 1.2% or 64 cents to $55.70 after the healthcare products maker reported sales in the third-quarter ending in September surged 28.8% from a year ago to $6.8 billion.

Net in the quarter swung to profit $603 million or 34 cents per diluted share from a loss of $329 million or 22 cents in the same quarter last year.

Abbott narrowed fiscal 2017 diluted earnings per share forecast to reflect double-digit growth between 97 cents and 99 cents.

International Business Machines Corp ((IBM)) soared 8.8% or $12.82 to $159.33 after the information technology provider reported revenues in the third-quarter ending in September slid 0.4% from a year ago to $19.15 billion.

Net income in the quarter declined 4.2% to $2.7 billion or $2.92 per diluted share from $2.9 billion or $2.98 in the same quarter last year.

IBM said cloud revenues in the quarter soared 20% to $4.1 billion and security sector revenues surged 51%.

IBM forecasted fiscal 2017 diluted earnings per share of at least $11.95 and free cash flow to be relatively flat from a year ago period.

""In the third quarter, we achieved double-digit growth in strategic imperatives, extended enterprise cloud leadership, and expanded our cognitive solutions business,"" said chairman, president and chief executive officer Ginni Rometty.

Morgan Stanley ((MS)) advanced 2.5% or $1.25 to $50.37 after the investment, banking services provider reported revenues in the third-quarter ending in September increased 3.4% from a year ago to $9.2 billion.

Net income in the quarter soared 11% to $1.7 billion or 93 cents per diluted share from $1.5 billion or 81 cents in the same quarter last year.

Morgan Stanley said as of September 30, total client assets were $2.3 trillion and client assets in fee-based accounts were $1 trillion and fee-based asset flows were $15.8 billion.

M&T Bank Corporation ((MTB)) slumped 2.1% or $3.41 to $160.73 after the banking services provider said interest income in the third-quarter ending in September jumped 9% from a year ago to $1.1 billion.

Net income in the quarter rose 2% to $355.9 million or $2.21 per diluted share from $350 million or $2.10 in the same quarter last year.

U.S. Bancorp ((USB)) fell 51 cents to $53.35 after the financial services provider reported total net revenues in the third-quarter ending in September surged 4.1% from a year ago to $5.6 billion.

Net income in the quarter jumped 3.6% to $1.5 billion or 88 cents per diluted share from $1.4 billion or 84 cents in the same quarter last year.