Boeing Lifts Outlook; GM Net Falls, Coca Cola Struggles with Revenue Growth

Mukesh Buch
25 Jul, 2018
New York City

AT&T profit surged but revenues fell. American Electric Power beat earnings results. Boeing profit soared and lifted fiscal outlook. The Coca-Cola profit beat estimates. GM profit hurts by headwinds. General Dynamics net jumped. United Parcel profit soared.

[R]12:25 PM New York City, New York – AT&T profit surged but revenues fell. American Electric Power beat earnings results. Boeing profit soared and lifted fiscal outlook. The Coca-Cola profit beat estimates. GM profit hurts by headwinds. General Dynamics net jumped. United Parcel profit soared.[/R]

Tollbooth Index edged up 9.51 to 15,866.76 but for the year-to-date soared 15.3%.

Earnings Review

AT&T Inc ((T)) declined 3.9% or $1.23 to $30.45 after the telecom and television services provider reported revenues in the second-quarter ending in June fell 2% from a year ago to $39 billion.

Net income in the quarter surged 30.8% to $5.1 billion or 81 cents per diluted share from $3.9 billion or 63 cents in the same quarter last year.

The telecom services provider said wireless net additions in the quarter were about 3.8 million with net 3.1 million additions in the U.S., driven by prepaid and connected devices and the telecom company added net 46,000 postpaid mobile phone subscribers.

In June, AT&T won a court approval to acquire Time Warner Inc for about $85 billion.

American Electric Power Co Inc ((AEP)) gained 54 cents to $69.60 after the electricity producer and supplier said revenues in the second-quarter ending in June rose 0.4% from a year ago to $4 billion.

Net income in the quarter soared 153.4% to $528.4 million or $1.07 per diluted share from $375 million or 76 cents in the same quarter last year.

Anthem, Inc ((ANTM)) fell $1.55 to $244.54 after the health insurance services provider reported revenues in the second-quarter ending in June advanced 2.1% from a year ago to $21.2 billion.

Net income in the quarter surged 23.2% to $1.1 billion or $3.98 per diluted share from $855.3 million or $3.16 in the same quarter last year.

The health insurer said as of June 30, medical enrollment declined to 39.5 million members from 40.4 million members in the same period a year ago.

The Boeing Co ((BA)) declined 3.1% or $10.98 to $347.11 after the aviation and defense contractor reported revenues in the second-quarter ending in June jumped 5% from a year ago to $24.3 billion.

Net income in the quarter soared 26% to $2.2 billion or $3.73 per diluted share from $1.7 billion or $2.87 in the same quarter last year.

Boeing lifted fiscal 2018 revenues forecast in the range of $97 billion to $99 billion from the earlier estimate of $96 billion to $98 billion and diluted earnings per share estimate was left unchanged between $16.40 and 16.60.

The Coca-Cola Company ((KO)) advanced 2.5% or $1.12 to $46.38 after the nonalcoholic beverage maker said revenues in the second-quarter ending in June declined 8% from a year ago to $8.9 billion.

Net income in the quarter jumped 69% to $2.3 billion or 54 cents per diluted share from $1.4 billion or 32 cents in the same quarter last year.

General Motors Company ((GM)) declined 7.4% or $2.94 to $36.55 after the automobiles maker reported revenues in the second-quarter ending in June slid 0.6% from a year ago to $36.8 billion.

Net income in the quarter fell 2.8% to $2.4 billion or $1.66 per diluted share from $1.7 billion or $1.09 in the same quarter last year.

""Our operating performance was impacted by significant headwinds from commodity costs and currency devaluations in South America,"" said chief financial officer Chuck Stevens.

General Dynamics Corp ((GD)) gained 1.3% or $2.46 to $199.21 after the aerospace and defense products maker said revenues in the second-quarter ending in June soared 19.7% from a year ago to $9.2 billion.

Net income in the quarter jumped 4.9% to $786 million or $2.62 per diluted share from $749 million or $2.50 in the same quarter last year.

General Dynamics said as of June 30, total order backlog was $66.3 billion and total potential contract value was $99 billion.

United Parcel Service, Inc ((UPS)) jumped 4.5% or $5.08 to $117.52 after the parcel delivery services provider reported revenues in the second-quarter ending in June advanced 9.6% from a year ago to $17.5 billion.

Net income in the quarter soared 7.3% to $1.5 billion or $1.71 per diluted share from $1.4 billion or $1.55 in the same quarter last year.

UPS forecasted fiscal 2018 diluted earnings per share in a range of $7.03 to $7.37 and free cash flow of about $5 billion and capital expenditures between $6.5 billion and $7 billion.