AstraZeneca Net Slumps on Weak Crestor Sales, MGM Net Drops

Mukesh Buch
09 Nov, 2017
New York City

AstraZeneca profit slumps on weak sales of Crestor. Magna International sales jump after higher production in Europe. MGM Resorts profit tumbled but revenues surged 18%. Office Depot profit plunged 52%. Time revenues fell as ad revenues declined.

[R]12:15 PM New York – AstraZeneca profit slumps on weak sales of Crestor. Magna International sales jump after higher production in Europe. MGM Resorts profit tumbled but revenues surged 18%. Office Depot profit plunged 52%. Time revenues fell as ad revenues declined.[/R]

Tollbooth Index slumped 94.63 or 0.7% to 13,259.35.

Earnings Review

AstraZeneca Plc ((AZN)) slid 5 cents to $33.28 after the U.K.-based biopharmaceutical products maker reported total revenues in the third-quarter ending in September jumped 9% from a year ago to $6.2 billion.

Net income in the quarter tumbled 34.8% to $649 million or 54 cents per diluted share from $995 million or 80 cents in the same quarter last year.

AstraZeneca said revenues in Crestor, cholesterol treatment drugs business tumbled 36% to $1.8 billion and sales in the U.S. declined 10% after availability of its cheaper generic versions.

The drug-maker lifted fiscal 2017 profit forecast as “towards the favorable end” from the earlier estimate to “decline at a slower rate.”

Magna International Inc ((MGA)) slumped 2.2% or $1.15 to $52.26 after Canada-based automobile parts supplier said sales in the third-quarter ending in September jumped 7% from a year ago to $9.5 billion.

Net income in the quarter was flat at $503 million from a year ago period but diluted earnings per share increased to $1.36 compared to $1.29 million or $3.63 in the same quarter last year.

Magna said growth in the sales was driven by light vehicle production in the Europe increased 8% but production of light vehicle in North American dropped by 7%.

MGM Resorts International ((MGM)) slid 6 cents to $33 after the casino resorts operator reported revenues in the third-quarter ending in September soared 17.6% from a year ago to $1.5 billion.

Net income in the quarter tumbled 72.2% to $149.1 million or 26 cents per diluted share from $535.6 million or 93 cents in the same quarter last year

Office Depot Inc ((ODP)) advanced 2.7% or 8 cents to $3.09 after the office products retailer said total sales in the third-quarter ending in September declined 8% from a year ago to $2.6 billion.

Net income in the quarter plunged 52.3% to $92 million or 17 cents per diluted share from $193 million or 35 cents in the same quarter last year.

Time Inc ((TIME)) soared 6% or 60 cents to $10.60 after the media and publishing services provider said revenues in the third-quarter ending in September plunged 9% from a year ago to $679 million.

Net in the quarter swung to profit $13 million or 14 cents per diluted share from a loss of $112 million or $1.13 in the same quarter last year.

The publishing services provider said revenues in the advertising segment and1 in the circulation business declined 12% each and revenues in magazines unit tumbled 14%.

Teekay Corporation ((TK)) surged 13.7% or $1.11 to $9.23 after the Bermuda-based oil and gas marine transportation services provider said revenues in the third-quarter ending in September dropped 4.4% from a year ago to $273.6 million.

Net in the quarter swung to a loss of $317.5 million from $47.7 million profit in the same quarter last year.