GM Net Swings to a Loss; 3M and McDonald

Mukesh Buch
24 Oct, 2017
New York City

3M lifted profit outlook. Biogen beats profit and revenue estimate. Caterpillar profit jumped on strong equipment demand. GM net swung to a loss on downtime. Eli Lilly profit beats estimate and the drug maker may sell or spinoff of animal health business. McDonald''s profit surged 48%.

[R]1:05 PM New York – 3M lifted profit outlook. Biogen beats profit and revenue estimate. Caterpillar profit jumped on strong equipment demand. GM net swung to a loss on downtime. Eli Lilly profit beats estimate and the drug maker may sell or spinoff of animal health business. McDonald''s profit surged 48%.[/R]

Tollbooth Index increased 42.94 or 0.3% to 12,857.62.

Earnings Review

3M Co ((MMM)) soared 6.3% or $13.88 to $235.37 after the industrial conglomerate reported sales in the third-quarter ending in September advanced 6% from a year ago to $8.2 billion.

Net income in the quarter jumped 7.5% to $1.4 billion or $2.33 per diluted share from $1.3 billion or $2.15 in the same quarter last year.

The industrial conglomerate lifted fiscal 2017 earnings per share forecast in the range of $9 to $9.10, 10% to 12% increase from a year ago, from the earlier estimate of $8.80 to $9.05.

Biogen Inc ((BIIB)) plunged 6.2% or $20.02 to $308.52 after the drug’s maker said revenues in the third-quarter ending in September increased 4% from a year ago to $3.1 billion.

Net income in the quarter soared 19% to $1.2 billion or $5.79 per diluted share from $1 billion or $4.71 in the same quarter last year.

Biogen said as of September 30, cash, cash equivalents of about $6.6 billion.

Caterpillar Inc ((CAT)) jumped 5% or $6.64 to $138.32 after the construction and mining equipment maker said revenues in the third-quarter ending in September soared 25% from a year ago to $11.4 billion.

Net income in the quarter surged to $1.1 billion or $1.77 per diluted share from $283 million or 48 cents in the same quarter last year.

Caterpillar said revenues in the construction equipment business jumped 37% to $4.85 billion and revenues in the energy and transportation equipment segment surged 12% to $3.96 billion.

The construction equipment maker forecasted full-year revenues of about $44 billion and lifted earnings per share to about $6.25 compared to the earlier estimate of $5.

General Motors Company ((GM)) increased 2.2% or 98 cents to $46.13 after the cars and trucks maker reported revenues in the third-quarter ending in September surged 13.5% from a year ago to $33.6 billion.

Net in the quarter swung to a loss of $2.98 billion or $2.03 per diluted share from $2.8 billion or $1.76 in the same quarter last year.

GM said the latest quarter was its weakest in the year because of downtime at North America units’ reduced wholesale volume by 26% to 268,000 units and special charge of $5.4 billion tied to the sale the Opel/Vauxhall brands in the Europe.

Lockheed Martin Corporation ((LMT)) declined 3% or $9.74 to $310.99 after the security and aerospace products maker reported net sales in the third-quarter ending in September jumped 5.4% from a year ago to $12.2 billion.

Net income in the quarter tumbled 60.9% to $939 million or $3.24 per diluted share from $2.4 billion or $7.93 in the same quarter last year.

Lockheed Martin said total backlog as of September 30 increased 7.7% to $103.6 billion from a year ago period.

Eli Lilly and Co ((LLY)) fell 3.1% or $2.70 to $84.48 after the pharmaceutical and animal health products maker said revenues in the third-quarter ending in September increased 9% from a year ago to $5.7 billion.

Net income in the quarter declined 29% to $555.6 million or 53 cents per diluted share from $778 million or 73 cents in the same quarter last year.

The drug-maker said it is reviewing strategic alternatives for Elanco Animal Health, including an initial public offering, merger, sale, or retention of the business, and will provide an update no later than the middle of 2018.

McDonald''s Corporation ((MCD)) gained 1% or $1.68 to $165.01 after the fast food restaurants operator reported revenues in the third-quarter ending in September plunged 10% from a year ago to $5.6 billion.

Net income in the quarter surged 48% to $1.9 billion or $2.32 per diluted share from $1.3 billion or $1.50 in the same quarter last year.

The fast food chain said U.S. comparable sales jumped 4.1%, global comparable sales increased 6%, system-wide sales rose 7% and international comparable sales soared 5.7% while comparable sales in China advanced 6.2% and returned to strong growth.

United Technologies Corporation ((UTX)) decreased 1.4% or $1.63 to $119.26 after the aerospace and defense products maker said sales in the third-quarter ending in September rose 5% from a year ago to $15.1 billion.

Net income in the quarter slumped 8% to $1.3 billion or $1.67 per diluted share from $1.5 billion or $1.78 in the same quarter last year.