Amazon, Alphabet Decline on Disappointments; Intel Posts Record Quarter

Mukesh Buch
26 Oct, 2018
New York City

Amazon plunged after sales disappointed investors. Alphabet Inc reported better-than-expected profits but missed revenues estimates. Colgate net tumbled on weak revenues. Intel posted another record quarter on strong microchip demand. Moody''s profit fell. Phillips 66 net surged.

[R]12:55 PM New York City, New York – Amazon plunged after sales disappointed investors. Alphabet Inc reported better-than-expected profits but missed revenues estimates. Colgate net tumbled on weak revenues. Intel posted another record quarter on strong microchip demand. Moody''s profit fell. Phillips 66 net surged.[/R]

Tollbooth Index declined 373.52 or 2.04% to 15,078.63 but for the year-to-date soared 9.6%.

Earnings Review

Amazon.com Inc ((AMZN)) plunged 9.3% or $165.57 to $1,616.60 after the online retailers reported revenues in the third-quarter ending in September soared 29% from a year ago to $56.6 billion.

Net income in the quarter surged to $2.9 billion or $5.75 per diluted share from $256 million or 52 cents in the same quarter last year.

The retailer forecasted fiscal fourth-quarter net sales growth between 10% and 20% or between $66.5 billion and $72.5 billion and operating income between $2.1 billion and $3.6 billion from $2.1 billion in the same period a year ago.

Alphabet Inc ((GOOG)) slumped 4.6% or $50.57 to $1,045 after the conglomerate reported revenues in the third-quarter ending in September surged 21% from a year ago to $33.7 billion.

Net income in the quarter surged 37.3% to $9.2 billion or $13.06 per diluted share from $6.7 billion or $9.57 in the same quarter last year.

Colgate-Palmolive Company ((CL)) declined 6% or $3.84 to $59.98 after the consumer products maker said net sales in the third-quarter ending in September dropped 3% from a year ago to $3.8 billion.

Net income in the quarter tumbled 13.8% to $523 million or 60 cents per diluted share from $607 million or 68 cents in the same quarter last year.

Colgate lowered fiscal 2018 gross margin and added earnings per share growth compared to fiscal 2017 to increase in “double digits.”

Discover Financial Services ((DFS)) declined 6.8% or $4.96 to $68.26 after the consumer banking services provider said total revenues in the third-quarter ending in September jumped 8% from a year ago to $2.7 billion.

Net income in the quarter soared 20% to $720 million or $2.05 per diluted share from $602 million or $1.59 in the same quarter last year.

Intel Corporation ((INTC)) advanced 2.8% or $1.24 to $45.55 after the chip maker reported revenues in the third-quarter ending in September advanced 19% from a year ago to $19.2 billion.

Net income in the quarter jumped 42% to $6.4 billion or $1.38 per diluted share from $4.5 billion or 94 cents in the same quarter last year.

Intel generated as of September cash from operations of $22.5 billion, free cash flow of $11.2 billion and returned $12.6 billion to shareholders.

The chip maker lifted fiscal 2018 revenues forecast of about $71.2 billion from the earlier estimate of $69.5 billion, plus or minus $10 billion and operating margin of about 33% and diluted earnings per share of about $4.52.

Moody''s Corp ((MCO)) plummeted 7.1% or $10.99 to $144.08 after the credit rating services provider stated revenues in the third-quarter ending in September increased 2% from a year ago to $1.1 billion.

Net income in the quarter fell 2.2% to $310.2 million or $1.59 per diluted share from $317.3 million or $1.63 in the same quarter last year.

Moody''s lowered fiscal 2018 diluted earnings per share forecast in the range of $6.95 to $7.10 from the earlier estimate of $7.20 to $7.40.

Phillips 66 ((PSX)) soared 4% or $3.98 to $102.47 after the independent refiner reported revenues in the third-quarter ending in September surged 16.7% from a year ago to $30.6 billion.

Net income in the quarter jumped 82.2% to $1.5 billion or $3.10 per diluted share from $823 million or $1.66 in the same quarter last year.