Surge in Alphabet, Amazon, Intel and Microsoft Lift Indexes

Mukesh Buch
27 Oct, 2017
New York City

Alphabet beats earnings estimates on rising aggregate advertising revenues. Amazon Roars ahead with broader revenues rise. CVS is in talks to acquire Aetna for $66 billion. Exxon profit surges. Intel PC revenues drop but report strong quarterly revenues. Microsoft rides cloud boom.

[R]1:45 PM New York – Alphabet beats earnings estimates on rising aggregate advertising revenues. Amazon Roars ahead with broader revenues rise. CVS is in talks to acquire Aetna for $66 billion. Exxon profit surges. Intel PC revenues drop but report strong quarterly revenues. Microsoft rides cloud boom.[/R]

Tollbooth Index jumped 173.11 or 1.3% to 13,079.46.

Earnings Review

Alphabet Inc ((GOOG)) soared 6.4% or $62.44 to $1,035.13 after the search engine services provider reported revenues in the third-quarter ending in September soared 23.7% from a year ago to $27.8 billion.

Net income in the quarter surged 31.4% to $6.7 billion or $9.57 per diluted share from $5.1 billion or $7.25 in the same quarter last year.

Alphabet reported cost per click declined 21% but aggregate paid clicks jumped 47% and operating margin advanced 28% from 26% in a year ago period.

Amazon.com, Inc ((AMZN)) surged 11.4% or $111.26 to $1,083.71 after the online market place said net sales in the third-quarter ending in September jumped 34% from a year ago to $43.7 billion.

Net income in the quarter increased 1.6% to $256 million from $252 million or diluted earnings per share were flat at 52 cents from in the same quarter last year.

Amazon forecasted fiscal 2017 net sales between $56 billion and $60.5 billion or may grow between 28% and 38% from fourth-quarter of fiscal 2016 and operating income between $300 million and $1.65 billion, compared to $1.3 billion compared to fourth-quarter 2016

CVS Health Corp ((CVS)) declined 4.6% or $3.32 to $69.93 after the drug retailer said is in talks to acquire diversified healthcare benefits provider Aetna Inc for more than $200 per share or more than $66 billion.

Aetna Inc stock slumped 2.5% to $175.59.

Colgate-Palmolive Company ((CL)) slipped 1.7% or $1.18 to $70.04 after the consumer products maker said revenues in the third-quarter ending in September advanced 3% from a year ago to $3.97 billion.

Net income in the quarter declined 13.5% to $607 million or 68 cents per diluted share from $702 million or 78 cents in the same quarter last year.

Colgate lifted global growth and efficiency restructuring program to generate charges of $1.28 billion to $1.38 billion from earlier estimate of $1.12 billion to $1.17 billion.

Exxon Mobil Corporation ((XOM)) increased 51 cents to $83.95 after the oil and gas explorer reported revenues in the third-quarter ending in September jumped 12.8% from a year ago to $66.2 billion.

Net income in the quarter surged 49.8% to $3.97 billion or 93 cents per diluted share from $2.65 billion or 63 cents in the same quarter last year.

Intel Corporation ((INTL)) jumped 7.1% or $2.94 to $44.30 after the computer processor maker said revenues in the third-quarter ending in September rose 2% from a year ago to $16.1 billion.

Net income in the quarter soared 34% to $4.5 billion or 94 cents per diluted share from $3.4 billion or 69 cents in the same quarter last year.

Intel said its PC business related revenues in the quarter were flat at $8.9 billion from a year ago period.

Intel lifted fiscal 2017 revenues forecast by $700 million to $62 billion and diluted earnings per share to increase by 27 cents to $2.93.

Microsoft Corporation ((MSFT)) soared 7.3% or $5.74 to $84.50 after the information technology provider reported revenues in the first-quarter ending in September advanced 12% from a year ago to $24.5 billion.

Net income in the quarter jumped 16% to $6.6 billion or 84 cents per diluted share from $5.7 billion or 72 cents in the same quarter last year.

Revenue in productivity and business processes segment jumped 28% to $8.2 billion, cloud business soared 14% to $6.9 billion while revenues in personal computing segment were flat at $9.4 billion.

“This quarter we exceeded $20 billion in commercial cloud ARR, outpacing the goal we set just over two years ago,” said chief executive officer Satya Nadella.

Merck & Co., Inc ((MRK)) slumped 4.9% or $3.03 to $58.97 after the healthcare products maker said revenues in the third-quarter ending in September decreased 2% from a year ago to $10.3 billion.

Net in the quarter swung to a loss of $56 million or 2 cents per diluted share from profit of $2.2 billion or 78 cents in the same quarter last year.

Merck forecasted fiscal 2017 revenues in the range of $40 billion and $40.5 billion and diluted earnings per share between $1.78 and $1.84.