P&G Jumps on Profit Surprise, American Express Lifts Growth Outlook

Mukesh Buch
19 Oct, 2018
New York City

American Express lifted revenue growth estimate. AIG revised higher global catastrophe losses. Honeywell lowered fiscal outlook. Procter & Gamble reported strong first-quarter results. PayPal net soared on 14% jump in revenues. VF Corp lifted fiscal outlook.

[R]12:55 PM New York City, New York – American Express lifted revenue growth estimate. AIG revised higher global catastrophe losses. Honeywell lowered fiscal outlook. Procter & Gamble reported strong first-quarter results. PayPal net soared on 14% jump in revenues. VF Corp lifted fiscal outlook.[/R]

Tollbooth Index increased 68.12 or 0.4% to 15,754.88 but for the year-to-date soared 14.5%.

Earnings Review

American Express Co ((AXP)) jumped 3.8% or $3.89 to $106.90 after the credit-card services provider reported revenues in the third-quarter ending in September jumped 9% from a year ago to $10.1 billion.

Net income in the quarter soared 22% to $1.7 billion or $1.88 per diluted share from $1.4 billion or $1.51 in the same quarter last year.

The credit-card services provider lifted fiscal 2018 revenues growth forecast to between 9% to 10% from the earlier estimate of 9% and diluted earnings per share in the range of $6.90 to $7.30.

American International Group ((AIG)) slumped 1.3% or 65 cents to $47.97 after the insurance and financial services provider said estimated pre-tax catastrophe losses in the third quarter of about $1.5 billion to $1.7 billion.

AIG forecasted pre-tax catastrophe losses from multiple events in Japan and Asia of about $900 million to $1 billion and in North America of about $600 million to $700 million.

In addition, the company estimated pre-tax loss related to Hurricane Michael of about $300 million to $500 million.

Honeywell International Inc ((HON)) rose 34 cents to $155.53 after the diversified technology and manufacturing services provider said revenues in the third-quarter ending in September advanced 6% from a year ago to $10.8 billion.

Net income in the quarter surged 71.4% to $2.4 billion or $3.11 per diluted share from $1.4 billion or $1.74 in the same quarter last year.

Honeywell lowered fiscal sales forecast to between $41.7 billion and $41.8 billion from the earlier estimate of $43.1 billion to $43.6 billion and diluted earnings per share in the range of $7.95 to $8 from the earlier estimate of $8.10 to $8.20.

The Procter & Gamble Company ((PG)) soared 6.7% or $5.40 to $85.71 after the consumer goods maker reported revenues in the first-quarter ending in September edged up 0.2% from a year ago to $16.7 billion.

Net income in the quarter jumped 12% to $3.2 billion or $1.22 per diluted share from $2.9 billion or $1.06 in the same quarter last year.

The consumer and healthcare products maker forecasted fiscal revenue growth between 2% and 3% and diluted earnings per share growth in the range of 3% to 8%.

PayPal Holdings, Inc ((PYPL)) surged 9.4% or $7.26 to $84.80 after the online payments services provider said revenues in the third-quarter ending in September jumped 14% from a year ago to $3.7 billion.

Net income in the quarter soared 15% to $436 million or 36 cents per diluted share from $380 million or 31 cents in the same quarter last year.

Total payment volume in the quarter surged 24% to $143 billion and payment transactions jumped 27% to 2.5 billion.

PayPal forecasted fiscal 2018 revenue to grow between 13% and 15% or in the range of $4.20 billion to $4.28 billion and diluted earnings per share in the range of $1.65 to $1.69.

SunTrust Banks Inc ((STI)) soared 3.4% or $2.06 to $63.63 after the investment banking services provider stated revenues in the third-quarter ending in September were flat from a year ago at $2.3 billion.

Net income in the quarter jumped 12% to $726 million or $1.56 per diluted share from $697 million or $1.06 in the same quarter last year.

The bank said average consumer and commercial deposits in the quarter were stabled at $159.3 billion and average loan rose 1% to $145.2 billion.

State Street Corporation ((STT)) plunged 8.3% or $6.61 to $73 after the bank and financial services provider said revenues in the third-quarter ending in September advanced 3.7% from a year ago to $3 billion.

Net income in the quarter surged 12.7% to $709 million or $1.87 per diluted share from $629 million or $1.66 in the same quarter last year.

VF Corporation ((VFC)) declined 8.1% or $7.09 to $80 after the apparel, footwear and accessories distributor reported revenues in the third-quarter ending in September surged 15% from a year ago to $3.9 billion.

Net income in the quarter jumped 31% to $507.1 million or $1.26 per diluted share from $386.1 million or 97 cents in the same quarter last year.

The apparel maker lifted fiscal 2018 revenues growth forecast to about 11% or $13.7 billion from the earlier estimate between $13.6 billion and $13.7 billion and diluted earnings per share of about $3.65 from the earlier estimate of $3.52 to $3.57 and gross margin of about 51%.