Boeing Lifts Dividend and Expands Stock Buy Back, Casey

Mukesh Buch
12 Dec, 2017
New York City

3M plans to sell its optical fiber business to Corning for $900 million. Boeing lifted dividend and expanded share buyback to $18 billion. Casey''s General lowered fiscal 2018 forecast. KMG Chemicals net rose. RMR Group net tumbled 32%.

[R]12:35 PM New York City, New York – 3M plans to sell its optical fiber business to Corning for $900 million. Boeing lifted dividend and expanded share buyback to $18 billion. Casey''s General lowered fiscal 2018 forecast. KMG Chemicals net rose. RMR Group net tumbled 32%.[/R]

Tollbooth Index advanced 61.54 or 0.5% to 13,871.62.

Earnings Review

3M Company ((MMM)) fell $1.63 to $237.63 after the industrial conglomerate’s chief executive officer Inge Thulin said that fiscal 2017 revenue growth at the “top-half” of its guidance between 4% and 5% and earnings per share in the range of $9 to $9.10, an increase of 6% to 10%.

In fiscal 2018, 3M estimated net earnings per share in the range of $9.60 to $10 from consensus forecast of $9.70 and total sales growth of 5% to 7% compared to the consensus estimate at 5.3%.

3M also plans to increase investments in research and development in the fiscal 2018 to $1.9 billion, or about 6% of sales and net income between $5.8 billion and $6.1 billion.

Separately today, 3M said it intends to sell its fiber optics and copper connectivity business to Corning Inc. for about $900 million in cash.

The Boeing Company ((BA)) jumped 2.5% or $7.19 to $290.27 after the military and commercial aircrafts maker today announced that it had increased its quarterly dividend by 20% to of $1.71 per share.

The board authorized a new stock repurchase plan of $18 billion which replaces the existing share buyback program of $14 billion.

Casey''s General Stores Inc ((CASY)) plunged 9.1% or $10.97 to $110.28 after the convenience stores operator reported revenues in the second-quarter ending in October soared 15.8% from a year ago to $2.2 billion.

Net income in the quarter declined 14.5% to $48.9 million or $1.28 per diluted share from $57.2 million or $1.44 in the same quarter last year.

The convenience stores operator lowered fiscal 2018 same store sales estimate in its prepared food and fountain in the range of 2% to 4% from 4% to 6%.

KMG Chemicals, Inc ((KMG)) surged 11.2% or $6.17 to $61.38 after the specialty chemicals manufacturer said revenues in the first-quarter ending in October jumped 45% from a year ago to $110.7 million.

Net income in the quarter rose 1.8% to $5.8 million or 46 cents per diluted share from $5.7 million or 47 cents in the same quarter last year.

RMR Group Inc ((RMR)) slipped 1.2% or 75 cents to $59.85 after the real estate developer said total revenues in the fourth-quarter ending in September increased 0.6% from a year ago to $56.6 million.

Net income in the quarter tumbled 32.4% to $5 million or 31 cents per diluted share from $7.4 million or 46 cents in the same quarter last year.

The real estate developer said as of September 30, total assets under management jumped 5.9% to approx $28.5 billion from a year ago period.

VeriFone Systems Inc ((PAY)) increased 1.9% or 36 cents to $18.58 ahead of release of its fourth-quarter earnings results after the market close.