IBM Cloud Surge Fail to Lift Stock, Northern Trust Earnings Fall Short

Mukesh Buch
17 Oct, 2018
New York City

Abbott Laboratories lowered fiscal 2018 outlook. IBM revenues failed to meet expectations set by analysts. M&T Bank beats earnings estimates. Northern Trust results fall short of expectations. US Bancorp profit soared.

[R]1:20 PM New York City, New York – Abbott Laboratories lowered fiscal 2018 outlook. IBM revenues failed to meet expectations set by analysts. M&T Bank beats earnings estimates. Northern Trust results fall short of expectations. US Bancorp profit soared.[/R]

Tollbooth Index increased 62.14 or 0.4% to 15,717.84 but for the year-to-date soared 14.2%.

Earnings Review

Abbott Laboratories ((ABT)) dropped 2.4% or $1.70 to $69.26 after the medical devices and healthcare products maker reported revenues in the third-quarter ending in September surged 12.1% from a year ago to $7.7 billion.

Net income in the quarter declined 6.7% to $563 million or 32 cents per diluted share from $603 million or 34 cents in the same quarter last year.

Abbott lowered fiscal 2018 diluted earnings per share forecast in the range of $1.33 to $1.35 from the earlier estimate of $1.34 to $1.40.

Domino''s Pizza Inc ((DPZ)) increased 1.4% or $3.57 to $263.53 after the pizza restaurant operator stated revenues in the third-quarter ending in September soared 22.1% from a year ago to $786 million.

Domestic same store sales in the quarter soared 6.3% and international same store sales advanced 3.3%.

Net income in the quarter jumped 49.1% to $84.1 million or $1.95 per diluted share from $56.4 million or $1.18 in the same quarter last year.

International Business Machines Corporation ((IBM)) plunged 7.1% or $10.29 to $134.83 after the information technology provider reported revenues in the third-quarter ending in September fell 2% from a year ago to $18.8 billion.

Net income in the quarter fell 1.5% to $2.69 billion or $2.94 per diluted share from $2.73 billion or $2.92 in the same quarter last year.

IBM said cloud segment revenues in the quarter surged 20% to $19 billion.

IBM reaffirmed fiscal 2018 diluted earnings per share forecast of about $11.60 and free cash flow of about $12 billion.

M&T Bank Corporation ((MTB)) gained 1.1% or $1.70 to $160.50 after the banking, mortgage, loan and investment services provider said interest income in the third-quarter ending in September fell 2% from a year ago to $1.2 billion.

Net income in the quarter surged 48% to $526 million or $3.53 per diluted share from $356 million or $2.21 in the same quarter last year.

Northern Trust Corporation ((NTRS)) declined 5.1% or $5.10 to $94.28 after the financial services provider stated revenues in the third-quarter ending in September jumped 9% from a year ago to $1.5 billion.

Net income in the quarter soared 25.5% to $374.5 million or $1.58 per diluted share from $298.4 million or $1.20 in the same quarter last year.

UniFirst Corporation ((UNF)) plummeted 6.4% or $10.55 to $153.97 after the uniform and protective apparel provider stated revenues in the fourth-quarter ending in September advanced 7.6% from a year ago to $434.1 million.

Net in the quarter swung to profit $35 million or $1.81 per diluted share from a loss of $4.9 million or 24 cents in the same quarter last year.

The uniform provider forecasted fiscal 2019 revenues between $1.77 billion and $1.79 billion and diluted earnings per share in the range of $6.65 to $7.05.

US Bancorp ((USB)) jumped 2.8% or $1.40 to $52.37 after the personal and consumer banking services provider reported revenues in the third-quarter ending in September increased 2.4% from a year ago to $5.7 billion.

Net income in the quarter surged 16.1% to $1.8 billion or $1.06 per diluted share from $1.6 billion or 88 cents in the same quarter last year.