GE Extends Weak Performance, Microsoft Rides Market Shift to Cloud

Mukesh Buch
20 Jul, 2018
New York City

General Electric fell after net declined 30% and weaker-than-expected revenues. Honeywell lifted fiscal outlook. Microsoft net jumped after cloud services revenue soared. Stanley Black lowered fiscal forecast. VF Corp revenues soared 23%.

[R]2:05 PM New York City, New York – General Electric fell after net declined 30% and weaker-than-expected revenues. Honeywell lifted fiscal outlook. Microsoft net jumped after cloud services revenue soared. Stanley Black lowered fiscal forecast. VF Corp revenues soared 23%.[/R]

Tollbooth Index increased 70.67 or 0.5% to 15,691.40 but for the year-to-date soared 14%.

Earnings Review

Baker Hughes, a GE company ((BHGE)) slumped 2% or 64 cents to $31.14 after the oilfield services provider said revenues in the second-quarter ending in June rose 2% from a year ago to $5.5 billion.

Net loss in the quarter was $19 million and diluted loss per share was 5 cents.

Baker Hughes said as of June 30, total orders soared 9% to $6 billion.

General Electric Company ((GE)) declined 3.7% or 51 cents to $13.22 after the diversified industrial conglomerate reported total revenues in the second-quarter ending in June advanced 3% from a year ago to $30.1 billion.

Net income in the quarter tumbled 30% to $615 million or 7 cents per diluted share from $875 million or 10 cents in the same quarter last year.

Honeywell International Inc ((HON)) advanced 2.8% or $4.08 to $151.62 after the diversified industrial manufacturer said revenues in the second-quarter ending in June jumped 8% from a year ago to $10.9 billion.

Net income in the quarter declined 7.1% to $1.3 billion or $1.68 per diluted share from $1.4 billion or $1.80 in the same quarter last year.

Honeywell lifted fiscal 2018 revenues forecast between $43.1 billion and $43.6 billion from the earlier estimate of $42.7 billion to $43.5 billion and diluted earnings per share in the range of $8.05 to $8.15 from the earlier estimate of $7.85 to $8.05.

Microsoft Corporation ((MSFT)) advanced 2.6% or $2.72 to $107.12 after the cloud-based software developer reported revenues in the second-quarter ending in June surged 17% from a year ago to $30.1 billion.

Net income in the quarter jumped 9.9% to $8.9 billion or $1.14 per diluted share from $8.1 billion or $1.03 in the same quarter last year.

Microsoft said revenues in productivity and business processes segment soared 13% to $9.7 billion and revenue in the cloud services revenue jumped 10% driven by Office 365 commercial growth of 42%.

Stanley Black & Decker, Inc ((SWK)) increased 1.7% or $2.37 to $142.02 after the hand and power tools manufacturer said total revenues in the second-quarter ending in June jumped 11% from a year ago to $3.6 billion.

Net income in the quarter soared 5.7% to $293.4 million or $1.93 per diluted share from $277.6 million or $1.82 in the same quarter last year.

Stanley Black lowered fiscal 2018 diluted earnings per share forecast to between $7.00 and $7.20 from the earlier estimate of $7.40 to $7.60.

VF Corporation ((VFC)) slumped 2% or 64 cents to $31.14 after the lifestyle apparel maker reported revenues in the first-quarter ending in June soared 23% from a year ago to $2.8 billion.

Net income in the quarter surged 46% to $160.4 million or 41 cents per diluted share from $109.9 million or 27 cents in the same quarter last year.

VF Corp forecasted fiscal 2018 revenues growth of about 10% to 11% or in the range of $13.6 billion to $13.7 billion and diluted earnings per share to increase 12% to 14% or in the range of $3.52 to $3.57.