Market Indexes Plunge as Worries Mount after 3M, Caterpillar Lower Outlook

Mukesh Buch
23 Oct, 2018
New York City

3M lowered fiscal outlook. Biogen reported strong results. Caterpillar fell after disappointed outlook. Lockheed Martin lifted fiscal outlook. McDonald`s net plunged 13%. United Technologies lifted full-year profit forecast. Verizon beat net and revenues estimates.

[R]1:00 PM New York City, New York – 3M lowered fiscal outlook. Biogen reported strong results. Caterpillar fell after disappointed outlook. Lockheed Martin lifted fiscal outlook. McDonald`s net plunged 13%. United Technologies lifted full-year profit forecast. Verizon beat net and revenues estimates.[/R]

Tollbooth Index plunged 469.80 or 2.9% to 15,374.82 but for the year-to-date soared 11.7%.

Earnings Review

The 3M Company ((MMM)) plunged 7.1% or $14.29 to $187.08 after the diversified industrial conglomerate reported revenues in the third-quarter ending in September slid 0.2% from a year ago to $8.2 billion.

Net income in the quarter jumped 7.1% to $1.5 billion or $2.58 per diluted share from $1.4 billion or $2.33 in the same quarter last year.

3M lowered fiscal 2018 diluted earnings per share forecast in the range of $8.78 to $8.93 from the earlier estimate of $9.08 to $9.38 and adjusted 2018 earnings to be in the range of $9.90 to $10.00 per share versus prior expectation of $10.20 to $10.45.

Biogen Inc ((BIIB)) gained 97 cents to $316.51 after the biotechnology products maker said revenues in the third-quarter ending in September soared 11.7% from a year ago to $3.4 billion.

Net income in the quarter surged 18% to $1.4 billion or $7.15 per diluted share from $1.2 billion or $5.79 in the same quarter last year.

Caterpillar Inc ((CAT)) plummeted 8.3% or $10.62 to $118.09 after the construction and mining equipment maker reported revenues in the third-quarter ending in September surged 18% from a year ago to $13.5 billion.

Net income in the quarter jumped 55% to $1.7 billion or $2.88 per diluted share from $1.1 billion or $1.77 in the same quarter last year.

Caterpillar lowered fiscal 2018 diluted earnings per share forecast in the range of $10.65 to $11.65 from the earlier estimate of $10.50 to $11.50.

Harley-Davidson Inc ((HOG)) slumped 3.5% or $1.35 to $37.37 after the motorcycles maker said revenues in the third-quarter ending in September soared 14.3% from a year ago to $1.1 billion.

Net income in the quarter jumped 67% to $113.9 million or 68 cents per diluted share from $68.2 million or 40 cents in the same quarter last year.

The motorcycles maker forecasted fiscal 2018 total shipments between 231,000 and 236,000 motorcycles and in the fourth-quarter about 45,800 to 50,800 motorcycles.

Huntington Bancshares Inc ((HBAN)) increased 1.4% or 19 cents to $13.85 after the banking services provider stated total revenues in the third-quarter ending in September advanced 5% from a year ago to $1.2 billion.

Net income in the quarter jumped 67% to $378 million or 33 cents per diluted share from $275 million or 23 cents in the same quarter last year.

The bank forecasted fiscal 2018 revenue growth between 4% and 4.5%, average loans and leases growth of about 5.5% to 6.5%, average deposits growth of 3.5% to 4.5% while average core deposits growth in the range of 4.5% to 5.5%.

Lockheed Martin Corp ((LMT)) fell $2.65 to $324.14 after the defense contractor reported revenues in the third-quarter ending in the September soared 16.3% from a year ago to $14.3 billion.

Net income in the quarter surged 55.8% to $1.5 billion or $5.14 per diluted share from $963 million or $3.32 in the same quarter last year.

The defense contractor lifted fiscal 2018 revenues forecast to about $53 billion from the earlier estimate of $51.6 billion to $53.1 billion and operating profit of about $5.8 billion from the earlier estimate of $5.58 billion to $5.73 billion and diluted earnings per share of about $17.50 from the earlier estimate of $16.75 to $17.05.


McDonald`s Corp ((MCD)) jumped 5.2% or $8.70 to $175.33 after the fast food restaurants operator reported revenues in the third-quarter ending in the September quarter declined 7% from a year ago to $5.4 billion.

McDonald`s said global comparable sales in the quarter soared 4.2% in all segments and system-wide sales soared 5%.

Net income in the quarter plunged 13% to $1.6 billion or $2.10 per diluted share from $1.9 billion or $2.32 in the same quarter last year.

United Technologies Corp ((UTX)) rose 89 cents to $127.29 after the diversified industrial conglomerate reported sales in the third-quarter ending in the September quarter surged 10% from a year ago to $16.5 billion.

Net income in the quarter declined 7% to $1.2 billion or $1.54 per diluted share from $1.3 billion or $1.67 in the same quarter last year.

United Technologies lifted fiscal 2018 sales forecast between $64 billion and $64.5 billion from the earlier estimate of $63.5 billion to $64.5 billion and diluted earnings per share in the range of $7.20 to $7.30 from the earlier estimate of $7.10 to $7.25.

Verizon Communications Inc ((VZ)) advanced 3.9% or $2.14 to $57.12 after wireless telecom services provider reported revenues in the third-quarter ending in the September rose 2.8% from a year ago to $32.6 billion.

Net income in the quarter jumped 35.5% to $5.1 billion or $1.19 per diluted share from $3.7 billion or 89 cents in the same quarter last year.

Telecom services provider said total retail postpaid net additions in quarter were 515,000 of which net phone additions were 295,000, postpaid smart phone net additions were 510,000, and tablet access accounts declined by 80,000 and added 300,000 other connected devices including wearables.

Verizon forecasted fiscal 2018 revenue growth in low-to-mid single-digit percentage rate.