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Market Update

Microsoft Earnings Soar Supported by Cloud Business, Abbott Net Drops


Author: Mukesh Buch
ticker.com
Last Update: 4:48 PM ET July 20 2016

12:00 PM New York Abbott net declined 22%. Halliburton net swung to a loss after revenues plummeted 35%. Illinois Tool net jumped 9%. Microsoft net swung to profit but revenues declined 7%. Morgan Stanley net and revenues tumbled. St. Jude Medical net declined 18%.

Tollbooth Index increased 66.91 or 0.6% to 10,965.

Earnings Review

Abbott Laboratories Inc (ABT) jumped 2.4% or 99 cents to $42.78 after the healthcare products maker said revenues in the second-quarter ending in June rose 3.2% from a year ago to $5.3 billion.

Net income in the quarter plunged 21.5% to $615 million or 41 cents per diluted share compared to $784 million or 52 cents per share from the same quarter last year.

Halliburton Company (HAL) dropped 1.3% or 62 cents to $44.37 after the oil and gas services provider reported total revenues in the second-quarter ending in June plummeted 35.1% from a year ago to $3.84 billion.

Net in the quarter swung to a loss of $3.2 billion or $3.73 per diluted share compared to profit of $54 million or 6 cents per share from the same quarter last year.

Illinois Tool Works Inc (ITW) advanced 2.4% or $2.63 to $113.74 after the industrial products maker stated total revenues in the second-quarter ending in June edged down 0.1% from a year ago to $3.4 billion.

Net income in the quarter jumped 9.4% to $525 million or $1.46 per diluted share compared to $480 million or $1.30 per share from the same quarter last year.

In the third quarter, the company estimated diluted earnings per share in the range of $1.42 to $1.52 and revenue to increase between 1% and 3%.

Illinois Tool forecasted diluted earnings per share in the year to soar at least 9% to $5.50 to $5.70.

Microsoft Corporation (MSFT) surged 6.3% or $3.38 to $56.47 after the software developer said revenues in the fourth-quarter ending in June declined 7.1% from a year ago to $20.61 billion.

Net income on GAAP basis in the quarter swung to profit of $3.12 billion or 39 cents per diluted share compared to loss of $3.2 billion or 40 cents per share from the same quarter last year.

For the fiscal year, revenues declined to $85 billion from $93.5 billion in 2015 but earnings rose to $16.8 billion from $12.2 billion.

Fiscal year earnings per share increased to $2.10 from $1.48 in the year ago period.

Morgan Stanley (MS) increased 2.6% or 74 cents to $28.93 after the investment bank and brokerage company reported revenues in the second-quarter ending in June plunged 8.2% from a year ago to $8.9 billion.

Net income in the quarter tumbled 11.1% to $1.6 billion or 75 cents per diluted share compared to $1.8 billion or 85 cents per share from the same quarter last year.

St. Jude Medical, Inc (STJ) rose 1.3% or $1.04 to $81.25 after the cardiovascular medical devices maker stated net sales in the second-quarter ending in June soared 11% from a year ago to $1.56 billion.

Net income in the quarter declined 17.9% to $238 million or 83 cents per diluted share compared to $290 million or $1.02 per share from the same quarter last year.

United Continental Holdings Inc (UAL) gained 2.6% or $1.25 to $49.10 after the airline operator said revenues in the second-quarter ending in June slumped 5.2% from a year ago to $9.4 billion.

Net income in the quarter tumbled 50.7% to $588 million or $1.78 per diluted share compared to $1.2 billion or $3.14 per share from the same quarter last year.

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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