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Market Update

AT&T, Boeing Profit Decline; Visa Beats Estimate on Europe Growth


Author: Mukesh Buch
ticker.com
Last Update: 1:02 PM EDT October 25 2017

12:55 PM New York AT&T profit declined after TV Subscription and wireless phone businesses shrink. Boeing profit plunged despite record plane deliveries. Coca-Cola profit surged 38% but revenues tumbled 15%. General Dynamics profit jumped 18%. International Paper net soared. Visa profit surged.

Tollbooth Index dropped 83.10 or 0.7% to 12,772.80.

Earnings Review

AT&T Inc (T) slumped 3.1% or $1.10 to $33.78 after the communications services provider reported revenues in the third-quarter ending in September fell 2.9% from a year ago to $39.7 billion.

Net income in the quarter declined 9.1% to $3 billion or 49 cents per diluted share from $3.3 billion or 54 cents in the same quarter last year.

Boeing Co (BA) dropped 2.9% or $7.89 to $258.10 after the commercial aircrafts maker said revenues in the third-quarter ending in September rose 2% from a year ago to $24.3 billion.

Net income in the quarter plunged 19% to $1.9 billion or $3.06 per diluted share from $2.3 billion or $3.60 in the same quarter last year.

Boeing said order backlog remains strong at $474 billion, including commercial airplane orders for 5,700 aircrafts valued at $412 billion.

The aircrafts maker lifted fiscal 2017 earnings per share forecast between $11.20 and 11.40 from the earlier estimate of $11.10 to $11.30 per share and reaffirmed full-year revenue in the range of $90.5 billion to $92.5 billion.

The Coca-Cola Co (KO) rose 10 cents to $46.27 after the non-alcoholic beverages maker reported net revenues in the third-quarter ending in September plummeted 15% from a year ago to $9.1 billion.

Net income in the quarter surged 38% to $1.4 billion or 33 cents per diluted share from $1.1 billion or 24 cents in the same quarter last year.

The beverages maker said decline in revenues was driven by 18% headwind from the ongoing refranchising of bottling territories.

Coca-Cola reaffirmed fiscal 2018 net revenues forecast between 16% and 17% and net revenues in fiscal 2017 in the range of 7% to 8%.

General Dynamics Corporation (GD) dropped 2.4% or $5.14 to $206.98 after the aerospace and defense products maker said revenues in the third-quarter ending in September slid 1% from a year ago to $7.58 billion.

Net income in the quarter jumped 18.1% to $764 million or $2.52 per diluted share from $647 million or $2.09 in the same quarter last year.

General Dynamics said as of September total backlog jumped 9% to $63.9 billion from the second-quarter 2017.

International Paper Co (IP) decreased 1.3% or 75 cents to $57.91 after the paper and packaging maker stated revenues in the third-quarter ending in September jumped 11.3% from a year ago to $5.9 billion.

Net income in the quarter soared 26.6% to $395 million or 95 cents per diluted share from $312 million or 75 cents in the same quarter last year.

Visa Inc (V) gained 1.4% or $1.55 to $109.96 after the payment services provider reported net revenues in the fourth-quarter ending in September soared 14% from a year ago to $4.8 billion.

Net income in the quarter jumped 10.5% to $2.1 billion or $3.61 per diluted share from $1.9 billion or $3.16 in the same quarter last year.

The payment services provider said payment volume in the quarter surged 9.8% to $1.93 trillion and continued to benefit from acquisition of Visa Europe.

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Sources: Data collected by 123jump.com and Ticker.com from company press releases, filings and corporate websites. Market data: BATS Exchange. Inc