Apple Announces Stock Buy Back of $100 B; MasterCard Net Surges

Mukesh Buch
02 May, 2018
New York City

Apple iPhone sales jumped and the device maker announced $100 billion stock buyback. AmerisourceBergen revenues exceeded estimate. CVS Health prescription drug sales surged. MasterCard profit soared on higher consumer spending.

[R]12:40 PM New York City, New York – Apple iPhone sales jumped and the device maker announced $100 billion stock buyback. AmerisourceBergen revenues exceeded estimate. CVS Health prescription drug sales surged. MasterCard profit soared on higher consumer spending.[/R]

Tollbooth Index jumped 236.43 or 1.6% to 14,875.03 but for the year-to-date jumped 8%.

Earnings Review

Apple Inc ((AAPL)) advanced 4.1% or $6.86 to $175.95 after the iPhone, tablets and consumer electronic devices maker reported revenues in the second-quarter ending in March surged 15.6% from a year ago to $61.1 billion.

Net income in the quarter jumped 25.3% to $13.8 billion or $2.73 per diluted share from $11 billion or $2.10 in the same quarter last year.

In the quarter, Apple sold 52.22 million iPhone units compared to 50.76 million units in the same period a year ago.

Apple forecasted revenue in the third-quarter between $51.5 billion and $53.5 billion and gross margin between 38% and 38.5% and operating expenses between $7.7 billion and $7.8 billion.

Apple said it will complete the previous $210 billion share repurchase authorized during the fiscal third quarter and its board has approved new $100 billion share repurchase authorization and a 16% increase in quarterly dividend.

AmerisourceBergen Corporation ((ABC)) jumped 4.4% or $3.89 to $93.09 after the pharmaceutical distributor reported revenues in the second-quarter ending in March soared 10.5% from a year ago to $41 billion.

Net income in the quarter plunged 30.7% to $287.5 million or $1.29 per diluted share from $411.5 million or $1.94 in the same quarter last year.

The pharmaceutical distributor forecasted fiscal 2018 revenue growth in the range of 8% to 11% and diluted earnings per share in the range of $6.45 to $6.65.

Ametek Inc ((AME)) advanced 2.1% or $1.42 to $70.68 after the electronic instruments and calibration devices maker said sales in the first-quarter ending in March surged 16% from a year ago to $1.2 billion.

Net income in the quarter soared 30.5% to $181.3 million or 78 cents per diluted share from $138.9 million or 60 cents in the same quarter last year.

Ametek forecasted diluted earnings per share in the range of $3.06 to $3.12, an increase of 17% to 20% from a year ago period.

Separately today, the electromechanical devices maker said it has completed the acquisition of rival SoundCom Systems.

CVS Health Corporation ((CVS)) declined 3.2% or $2.14 to $65.86 after the retail pharmacy chain reported revenues in the first-quarter ending in March increased 2.6% from a year ago to $45.7 billion.

Same store prescription volume in the quarter soared 8.5%.

Net income in the quarter jumped 4.8% to $998 million or 98 cents per diluted share from $952 million or 92 cents in the same quarter last year.

CVS Health forecasted fiscal 2018 operating profit growth to plus minus 0.25% to 2.75% and diluted earnings per share in the range of $5.11 to $5.32.

Humana Inc ((HUM)) slumped 2.5% or $7.34 to $287.85 after the health insurer reported revenues in the first-quarter ending in March jumped 4% from a year ago to $14.3 billion.

Net income in the quarter jumped 25.3% to $707 million or $3.53 per diluted share from $1.7 billion or $2.10 in the same quarter last year.

Humana lifted fiscal 2018 diluted earnings per share forecast between $13.54 and $13.94 from the earlier estimate of $13.16 to $13.66.

MasterCard Inc ((MA)) advanced 2.8% or $5.01 to $185.26 after the electronic payment services provider reported revenues in the first-quarter ending in March soared 31% from a year ago to $3.6 billion.

Net income in the quarter surged 38% to $1.5 billion or $1.41 per diluted share from $1.1 million or $1 in the same quarter last year.

MasterCard said gross dollar volume in the quarter jumped 14% to $1.4 trillion and customers had issued 2.4 billion MasterCard and Maestro-branded cards.