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Market Update

Walgreens to Buy Rite Aid; Ford, Merck Net Soar, Comcast, Pfizer Net Drop


Author: Mukesh Buch
ticker.com
Last Update: 5:21 PM ET October 27 2015

12:00 PM New York Walgreens is in talk to acquire Rite Aid. Cisco agreed to acquire privately held Lancope. Alibaba net jumped. Bristol-Myers net fell 2%. Comcast profit plunged. Du Pont net plummeted 46%. Ford net more than doubled. Pfizer net plunged 20%.

Tollbooth Index slipped 115.33 or 1.1% to 10,832.46.

Earnings Review

Alibaba Group Holding Ltd (BABA) soared 4.1% or $3.08 to $79.39 after the China-focused online and mobile market place said revenue in the second-quarter ending in September soared 32% from a year ago to $3.49 billion.

Net income in the quarter jumped 649% to $3.58 billion and diluted earnings per share increased to $1.40 compared to the same period a year ago.

The company said mobile revenues in the quarter surged 183% to $1.66 billion.

Bristol-Myers Squibb Co (BMY) jumped 2.5% or $1.59 to $66.14 after the biopharmaceutical products maker reported total revenues in the third-quarter ending in September increased 4% from a year ago to $4.07 billion.

Net income in the quarter fell 2.1% to $706 million or 42 cents per diluted share compared to $721 million or 43 cents from the same quarter last year.

Comcast Corporation (CMCSA) dropped 1.1% or 69 cents to $61.49 after the cable network operator reported revenues in the third-quarter ending in September jumped 11.2% from a year ago to $18.67 billion.

Net income in the quarter plunged 23.2% to $1.99 billion or 80 cents per diluted share compared to $2.59 billion or 99 cents from the same quarter last year.

The company said broadband revenue in the quarter soared 10.2% to $3.1 billion while voice revenue fell 1.4% to $900 million. Business-services revenue surged 19.5% to $1.2 billion and video revenue increased 3.3% to $5.3 billion.

In the quarter, the company said media segment revenue jumped 21% to $7.2 billion.

Cisco Systems, Inc (CISCO) slid 7 cents to $28.89 after the network services provider agreed to acquire privately held network security provider Lancope, Inc for about $452.5 million in cash and stock.

The transaction is expected to close in the second-quarter of 2016.

Cummins Inc (CMI) plunged 7.9% or $8.81 to $103.27 after the diesel and gas engines maker said revenues in the third-quarter ending in September dropped 6% from a year ago to $4.6 billion.

Net income in the quarter declined 10.2% to $380 million or $2.14 per diluted share compared to $423 million or $2.32 from the same quarter last year.

E I Du Pont De Nemours And Co (DD) increased 2.8% or $1.67 to $62.04 after the industrial conglomerates reported revenues in the third-quarter ending in September plunged 20.7% from a year ago to $4.97 billion.

Net income in the quarter plummeted 45.7% to $235 million or 26 cents per diluted share compared to $433 million or 47 cents from the same quarter last year.

Ford Motor Company (F) slumped 4.7% or 73 cents to $14.95 after the auto maker reported revenues in the third-quarter ending in September jumped 9.1% from a year ago to $35.8 billion.

Net income in the quarter more than double to $1.91 billion or 48 cents per diluted share compared to $835 million or 45 cents from the same quarter last year.

The North America region revenues surged 89% to $2.7 billion from a year ago and in Europe soared 17% but fell in South America, the Middle East and Asia.

Ford reaffirmed forecast to report full-year pre-tax profit between $8.5 billion and $9.5 billion.

Merck & Co., Inc (MRK) rose 37 cents to $53.20 after the health care company said revenues in the third-quarter ending in September declined 5% from a year ago to $10.07 billion.

Net income in the quarter doubled to $1.83 billion or 64 cents per diluted share compared to $895 million or 31 cents from the same quarter last year.

Merck lifted earnings per share forecast for the year between $3.55 and $3.60 from the earlier estimated range of $3.45 to $3.55 per share.

Pfizer Inc (PFE) increased 2.1% or 71 cents to $34.87 after the reported revenues in the third-quarter ending in September slipped 2% from a year ago to $12.09 billion.

Net income in the quarter plunged 20% to $2.13 billion or 34 cents per diluted share compared to $2.67 million or 42 cents 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