IBM Plunges on Weak Outlook; Morgan Stanley, Netflix, U.S. Bancorp Net Jump

Mukesh Buch
18 Apr, 2018
New York City

Abbott beats earnings estimates. CSX net surged on lower expenses and price improvement. IBM declined on weak fiscal outlook. Morgan Stanley reported strong performance across all business segments. Netflix net surged on strong subscriber additions.

[R]11:40 AM New York City, New York – Abbott beats earnings estimates. CSX net surged on lower expenses and price improvement. IBM declined on weak fiscal outlook. Morgan Stanley reported strong performance across all business segments. Netflix net surged on strong subscriber additions.[/R]

Tollbooth Index fell 36.42 or 0.2% to 14,862.07 and for the year-to-date jumped 7.9%.

Abbott Laboratories ((ABT)) declined 2.6% or $1.58 to $58.22 after the medical devices and branded generic drugs maker reported net sales in the first-quarter ending in March soared 16.7% from a year ago to $7.4 billion.

Net income in the quarter slid 0.4% to $418 million or 23 cents per diluted share from $419 million or 22 cents in the same quarter last year.

The generic drugs maker estimated second-quarter diluted earnings per share between 33 cents and 35 cents.

Abbott forecasted fiscal 2018 diluted earnings per share in the range of $1.23 to $1.33.

CSX Corporation ((CSX)) soared 5.9% or $3.32 to $59.89 after the railroad services provider said revenues in the first-quarter ending in March were flat from a year ago at $2.9 billion.

Net income in the quarter surged 92% to $695 million or 78 cents per diluted share from $362 million or 39 cents in the same quarter last year.

International Business Machines Corporation ((IBM)) plunged 6.9% or $11.07 to $149.85 after the software and hardware services provider reported total revenues in the first-quarter ending in March jumped 5% from a year ago to $19.1 billion.

Net income in the quarter dropped 4% to $1.68 billion or $1.81 per diluted share from $1.75 billion or $1.85 in the same quarter last year.

IBM said strategic imperatives revenue surged 12% to $37.7 billion and revenues in the cloud segment soared 22% to $17.7 billion.

IBM forecasted fiscal 2018 diluted earnings per share of about $11.58 and free cash flow of about $12 billion.

Morgan Stanley ((MS)) increased 1.3% or 69 cents to $53.93 after the investment banker said revenues in the first-quarter ending in March surged 14.4% from a year ago to $11.1 billion.

Net income in the quarter soared 42.1% to $2.7 billion or $1.45 per diluted share from $1.9 million or $1 in the same quarter last year.

Netflix Inc ((NFLX)) slipped $2.26 to $333.80 after the video streaming and on demand service provider reported revenues in the first-quarter ending in March soared 42.3% from a year ago to $3.7 billion.

Net income in the quarter jumped 62.8% to $290.1 million or 64 cents per diluted share from $178.2 million or 40 cents in the same quarter last year.

In the quarter, Netflix added 1.96 million are customers in the U.S. and International subscriber additions jumped 5.46 million, totaling 7.41 million around the world.

In the current quarter, the video streaming service provider estimated to add 6.20 million of with 1.20 million in the U.S.

U.S. Bancorp ((USB)) decreased 1.6% or 80 cents to $50.23 after the diversified financial services provider reported revenues in the first-quarter ending in March jumped 11.7% from a year ago to $3.8 billion.

Net income in the quarter surged 15.1% to $1.6 billion or 96 cents per diluted share from $1.4 million or 82 cents in the same quarter last year.