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Market Update

GE Net Swing to Profit; Honeywell, Rockwell, Stanley Black Lifted Outlook


Author: Mukesh Buch
ticker.com
Last Update: 1:05 PM ET April 21 2017

2:10 PM New York – GE net swung to profit. Honeywell lifted fiscal outlook. Interpublic said net in the first-quarter soared four-fold. Mattel net loss widened. Rockwell Collins lifted full-year sales forecast. Stanley Black profit doubled. Schlumberger net swung to profit.

Tollbooth Index rose 10.64 to 11,800.86.

Earnings Review

General Electric Company (GE) slipped 1.1% or 33 cents to $29.94 after the diversified industrial conglomerate reported total revenues in the first-quarter ending in March fell 1% from a year ago to $27.7 billion.

Net in the quarter swung to profit of $619 million or 7 cents per diluted share from a loss of $61 million or 1 penny in the same quarter last year.

GE forecasted to hit the full-year cash target of $14 billion from $12 billion but the company also reported negative cash flow from industrial operating business of $1.6 billion.

“The deal with Baker Hughes remains on track and we expect to close it in mid-2017,"" said chairman and chief executive officer Jeffrey R. Immelt.

Honeywell International Inc (HON) jumped 3.2% or $3.90 to $127.67 after the industrial conglomerate reported total revenues in the first-quarter ending in March slid 0.3% from a year ago to $9.5 billion.

Net income in the quarter soared 9% to $1.3 billion or $1.71 per diluted share from $1.2 billion or $1.56 in the same quarter last year.

“We are raising the low end of our full-year guidance by 5 cents per share. We now anticipate 2017 earnings per share will be $6.90 to $7.10, up 7%-10%,” said chief executive officer Darius Adamczyk.

Interpublic Group of Companies Inc (IPG) slumped 2.2% or 54 cents to $24.63 after the advertising and marketing services provider stated total revenues in the first-quarter ending in March increased 0.7% from a year ago to $1.8 billion.

Net income in the quarter soared to $21.5 million or 5 cents per diluted share from $5.4 million or 1 penny in the same quarter last year.

Mattel, Inc (MAT) tumbled 11.5% or $2.89 to $22.32 after the toy products maker said revenues in the first-quarter ending in March plunged 15% from a year ago to $735.6 million.

Net loss in the quarter widened to $113.2 million or 33 cents per diluted share from $73 million or 21 cents in the same quarter last year.

Rockwell Collins, Inc (COL) advanced 3.6% or $3.59 to $103.18 after the communications and aviation systems maker reported total sales in the second-quarter ending in March were flat from a year ago to $1.3 billion.

Net income in the quarter fell 1.8% to $168 million or $1.27 per diluted share from $171 million or $1.29 in the same quarter last year.

Rockwell lifted total sales forecast in fiscal 2017 between $6.7 billion and $6.8 billion from the earlier estimated range of $5.3 billion to $5.4 billion and earnings per share in the range of $4.50 to $4.70.

Stanley Black & Decker, Inc (SWK) gained 1.9% or $2.45 to $135.16 after the electronic security and monitoring systems maker stated revenues in the first-quarter ending in March jumped 5% from a year ago to $2.8 billion.

Net income in the quarter nearly doubled to $393.1 million or $2.59 per diluted share from $189.4 million or $1.28 in the same quarter last year.

The electronic systems maker lifted diluted earnings per share forecast in the range of $7.95 to $8.15 from earlier estimated range of $7.63 To $7.83 after the improved outlook in the industrial businesses.

Schlumberger Limited (SLB) dropped 2.2% or $1.71 to $74.80 after the oil and gas drilling services provider said revenues in the first-quarter ending in March soared 6% from a year ago to $6.9 billion.

Net in the quarter swung to profit $279 million or 20 cents per diluted share from a loss of $204 million or 15 cents in the same quarter last year.

Visa Inc (V) rose 4 cents to $91.19 after the electronic payment services provider reported revenues in the second-quarter ending in March soared 25% from a year ago to $4.5 billion.

Net income in the quarter tumbled 74.7% to $430 million or 18 cents per diluted share from $1.7 billion or 71 cents in the same quarter last year.

Visa said GAAP effective income tax rate was 84.1% in the March 2017 quarter, including $1.5 billion non-recurring, non-cash income tax provision related to the elimination of deferred tax balances originally recorded upon the 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