BlackRock Net Inflows Plunge; Goldman Sachs, Morgan Stanley Earnings Soar

Mukesh Buch
16 Oct, 2018
New York City

Adobe reaffirmed fourth-quarter revenues forecast. BlackRock declined after net inflow declined. Goldman Sachs profit soared 21%. Grainger net plunged 36%. Johnson & Johnson lifted fiscal outlook. Morgan Stanley beats estimates.

[R]12:45 PM New York City, New York – Adobe reaffirmed fourth-quarter revenues forecast. BlackRock declined after net inflow declined. Goldman Sachs profit soared 21%. Grainger net plunged 36%. Johnson & Johnson lifted fiscal outlook. Morgan Stanley beats estimates.[/R]

Tollbooth Index increased 70.27 or 0.5% to 15,655.70 but for the year-to-date soared 13.8%.

Earnings Review

Adobe Inc ((ADBE)) soared 6.4% or $15.15 to $253.16 after the software developer reaffirmed its fourth-quarter 2018 revenues of $2.42 billion and diluted earnings per share of $1.42.

In fiscal 2019, Adobe forecasted revenues to grow 20%.

BlackRock Inc ((BLK)) declined 4.4% or $18.82 to $408.13 after the asset manager reported revenues in the third-quarter ending in September grew 2% from a year ago to $3.6 billion.

Net income in the quarter surged 29% to $1.2 billion or $7.54 per diluted share from $944 million or $5.76 in the same quarter last year.

As of September 30, asset under management soared 8% to $6.4 trillion but net inflows declined to $3.11 billion from $20 billion in second-quarter and $96.1 billion in a year ago period.

The Goldman Sachs Group, Inc ((GS)) gained 1.5% or $3.33 to $218.55 after the investment banking services provider said revenues in the third-quarter ending in September advanced 4% from a year ago at $8.6 billion.

Net income in the quarter jumped 21% to $2.5 billion or $6.28 per diluted share from $2 billion or $5.02 in the same quarter last year.

Goldman Sachs said as of September 30, total assets fell 1.1% to $958 billion from $969 billion in the previous quarter.

Revenues in the investment banking business soared 10% to $1.98 billion and net revenues in the investment management surged 12% to $1.70 billion from a year ago period.

W. W. Grainger, Inc ((GWW)) tumbled 11.6% or $37.03 to $280.98 after the industrial equipment provider stated revenues in the third-quarter ending in September soared 7.4% from a year ago at $2.8 billion.

Net income in the quarter plunged 36% to $104.4 million or $1.82 per diluted share from $162 million or $2.79 in the same quarter last year.

Johnson & Johnson ((JNJ)) increased 1.5% or $1.9 to $135.89 after the medical devices maker reported sales in the third-quarter ending in September rose 3.6% from a year ago at $20.3 billion.

Net income in the quarter jumped 2.6% to $3.9 billion or $1.44 per diluted share from $3.8 billion or $1.37 in the same quarter last year.

The medical devices maker lifted fiscal 2018 sales forecast to between $81 billion and $81.4 billion from the earlier estimate of $80.5 billion to $81.3 billion, an operational growth of 5.5% to 6%.

Johnson & Johnson also lifted fiscal 2018 diluted earnings per share forecast to between $8.13 and $8.18 from the earlier estimate of $8.07 to $8.17 an operational growth in the range of 8.5% to 9.9%.

Morgan Stanley ((MS)) soared 4.6% or $1.99 to $45.46 after the investment bank and financial services provider said revenues in the third-quarter ending in September advanced 7.6% from a year ago to $9.9 billion.

Net income in the quarter jumped 16.7% to $2.1 billion or $1.17 per diluted share from $1.8 billion or 93 cents in the same quarter last year.

Prologis, Inc ((PLD)) rose 21 cents to $63.28 after the logistics real estate services provider reported total revenues in the third-quarter ending in September jumped 13% from a year ago to $682 million.

Net income in the quarter tumbled to $346 million or 60 cents per diluted share from $876 million or $1.63 in the same quarter last year

Prologis lowered fiscal 2018 diluted earnings per share forecast.

UnitedHealth Group ((UNH)) advanced 3.5% or $9.03 to $269.28 after the health insurance services reported revenues in the third-quarter ending in September surged 12% from a year ago at $56.6 billion.

Net income in the quarter jumped 26.9% to $3.3 billion or $3.24 per diluted share from $2.6 billion or $2.51 in the same quarter last year.