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Market Update

Goldman, IBM Net Plunge, J&J Lifts Sales Outlook


Author: Mukesh Buch
ticker.com
Last Update: 12:49 PM ET April 19 2016

12:45 PM New York Goldman Sachs net dropped after revenues sharply declined in its key businesses. Harley-Davidson net dropped 7% but revenues jumped. IBM net fell. J&J lifted annual sales forecast. Netflix continue to tumble on weak outlook. Philip Morris net plunged. UnitedHealth net soared.

Tollbooth Index slipped 38.24 or 0.3% to 10,876.99.

Earnings Review

Goldman Sachs Group Inc (GS) jumped 2.6% or $4.17 to $163.19 after the banking and brokerage services provider reported revenues in the first-quarter ending in March plunged 40% from a year ago to $6.34 billion.

Net income in the quarter tumbled 56% to $1.20 billion or $2.68 per diluted share compared to $2.75 billion or $5.94 per share from the same quarter last year.

In the first quarter, the banking and brokerage services provider set aside $2.66 billion, a 40% less than from a year ago for its bonus pool.

Goldman Sachs''s non-compensation expenses dropped in seven years while revenues sharply declined in its key businesses.

Harley-Davidson Inc (HOG) slumped 2.9% or $1.40 to $45.55 after the motorcycle maker said revenues in the first-quarter ending in March jumped 4.6% from a year ago to $1.58 billion.

Net income in the quarter declined 7.2% to $250.5 million or $1.36 per diluted share compared to $269.9 million or $1.27 per share from the same quarter last year.

Harley-Davidson forecasted motorcycles shipment in fiscal 2016 between 269,000 units and 274,000 units, approx 1% to 3% increase from a year ago and capital expenditures in the range of $255 million to $275 million.

In second-quarter, the company estimated to ship between 82,500 units and 87,500 units compared to 85,172 motorcycles shipped in a year ago period.

International Business Machines Corp (IBM) slumped 5.8% or $8.87 to $143.66 after the technology company said revenues in the first-quarter ending in March dropped 5% from a year ago to $18.7 billion.

Net income in the quarter plunged 13.7% to $2.01 billion or $2.09 per diluted share compared to $2.33 billion or $2.35 per share from the same quarter last year.

The company forecasted GAAP diluted earnings per share in the full-year 2016 of about $12.35.

Johnson & Johnson (JNJ) advanced 2.1% or $2.36 to $113.33 after the health care products maker reported revenues in the first-quarter ending in March rose 0.6% from a year ago to $17.5 billion.

Net income in the quarter fell 0.7% to $4.29 billion or $1.54 per diluted share compared to $4.32 billion or $1.53 per share from the same quarter last year.

The company said domestic sales jumped 7.2% but sales in the international business dropped 6%.

The health care products maker lifted sales forecasted in the year between $71.2 billion and $71.9 billion and earnings per share in the range of $6.53 to $6.68.

Netflix, Inc (NFLX) tumbled 10.5% or $11.43 to $96.94 after the online television services provider said revenues in the first-quarter ending in March soared 24.8% from a year ago to $1.96 billion.

Net income in the quarter surged 16.9% to $27.7 million or 6 cents per diluted share compared to $23.7 million or 5 cents per share from the same quarter last year.

Netflix plunged after the company forecasted to add approx 2.5 million subscribers from April to June period, lower than added in a year ago period.

Philip Morris International Inc (PM) decreased 1.4% or $1.45 to $99.13 after the tobacco products maker reported revenues in the first-quarter ending in March plummeted 3.3% from a year ago to $16.8 billion.

Net income in the quarter plunged 14.8% to $1.53 billion or 98 cents per diluted share compared to $1.80 billion or $1.16 per share from the same quarter last year.

Philip Morris lifted estimated diluted earnings per share in the year in a range of $4.40 to $4.50 from $4.42 in fiscal 2015.

UnitedHealth Group Inc (UNH) gained 1.9% or $2.42 to $130.23 after the health care services provider said revenues in the first-quarter ending in March surged 25% from a year ago to $44.5 billion.

Net income in the quarter soared 14.2% to $1.61 billion or $1.67 per diluted share compared to $1.41 billion or $1.46 per share from the same quarter last year.

The health insurer said in 2017, it will withdraw from health insurance marketplaces from almost of 34 states where the insurer offers Affordable Care Act insurance exchanges plans.

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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