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Q1 Earnings Keep Markets in the Green: MS, USB, ABT & TXT
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Wednesday, April 18, 2018
Triple-digit gains in regular-day Tuesday trading in both the Dow and Nasdaq were bolstered by a number of different things — strong housing starts and a lack of relative geopolitical tension early this week among them — but nothing so influential as a very strong Q1 earnings season. We are still in the early stages so far (only a week has passed since Delta Air Lines beat estimates on both top and bottom lines), but overall results have been notably better than expected.
While after-the-bell earnings reports yesterday were better than expected across the board, some companies performed more impressively than others. While Intuitive Surgical (ISRG - Free Report) posted a robust earnings beat, IBM (IBM - Free Report) eked out a positive surprise on new corporate tax benefits alone. (IBM’s Watson enterprise has thus far failed to inspire fresh investment in Big Blue.) As a result, IBM has shed more than 5% in today’s pre-market, while ISRG shares are up 5% this morning.
New Q1 earnings reports are following suit, starting with Morgan Stanley (MS - Free Report) , which left estimates in the dust this morning. This investment banking major posted $1.45 per share on $11.1 billion in quarterly revenues, outpacing the $1.28 and $10.5 billion in the Zacks consensus estimates, respectively. Net income grew 38% in Q1, whereas Sales & Trading rose 26%. For more on MS’s earnings, click here.
Fellow financial institution U.S. Bank (USB - Free Report) beat earnings estimates by a penny to 95 cents per share, but missed on revenue expectations, bringing in $5.47 billion as opposed to the $5.53 billion our analysts were looking for. This still represents good year-over-year growth from $5.29 billion in Q1 2017, but pre-market trading shows USB shares slipping half a percentage point at this hour. For more on USB’s earnings, click here.
Based on Chicago’s North Shore, Abbott Labs (ABT - Free Report) also topped earnings consensus by a penny to 59 cents per share. Revenues also slightly surpassed expectations in Q1, reporting $7.39 billion in sales. Guidance for full-year 2018 has been posted at between $2.80 and $2.90 per share, and the Zacks consensus is roughly at the midpoint. Shares are off 1.3% ahead of today’s opening bell. For more on ABT’s earnings, click here.
Defense components major Textron (TXT - Free Report) , however, performed much better this morning — 76 cents per share blew away expectations of 46 cents, and more than double the 37 cents per share a year ago. Sales of $3,296 million also impressed, both above the estimated $3,114 million and the year-ago figure of $3,093 million. Industrial sales perked up 14%, and the company saw gains from its Arctic Cat acquisition. Shares are up 6.7% in today’s pre-market. For more on TXT’s earnings, click here.
Mark Vickery Senior Editor
Questions or comments about this article and/or its author? Click here>> https://www.zacks.com/bio/mark-vickery
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Q1 Earnings Keep Markets in the Green: MS, USB, ABT & TXT
Wednesday, April 18, 2018
Triple-digit gains in regular-day Tuesday trading in both the Dow and Nasdaq were bolstered by a number of different things — strong housing starts and a lack of relative geopolitical tension early this week among them — but nothing so influential as a very strong Q1 earnings season. We are still in the early stages so far (only a week has passed since Delta Air Lines beat estimates on both top and bottom lines), but overall results have been notably better than expected.
While after-the-bell earnings reports yesterday were better than expected across the board, some companies performed more impressively than others. While Intuitive Surgical (ISRG - Free Report) posted a robust earnings beat, IBM (IBM - Free Report) eked out a positive surprise on new corporate tax benefits alone. (IBM’s Watson enterprise has thus far failed to inspire fresh investment in Big Blue.) As a result, IBM has shed more than 5% in today’s pre-market, while ISRG shares are up 5% this morning.
New Q1 earnings reports are following suit, starting with Morgan Stanley (MS - Free Report) , which left estimates in the dust this morning. This investment banking major posted $1.45 per share on $11.1 billion in quarterly revenues, outpacing the $1.28 and $10.5 billion in the Zacks consensus estimates, respectively. Net income grew 38% in Q1, whereas Sales & Trading rose 26%. For more on MS’s earnings, click here.
Fellow financial institution U.S. Bank (USB - Free Report) beat earnings estimates by a penny to 95 cents per share, but missed on revenue expectations, bringing in $5.47 billion as opposed to the $5.53 billion our analysts were looking for. This still represents good year-over-year growth from $5.29 billion in Q1 2017, but pre-market trading shows USB shares slipping half a percentage point at this hour. For more on USB’s earnings, click here.
Based on Chicago’s North Shore, Abbott Labs (ABT - Free Report) also topped earnings consensus by a penny to 59 cents per share. Revenues also slightly surpassed expectations in Q1, reporting $7.39 billion in sales. Guidance for full-year 2018 has been posted at between $2.80 and $2.90 per share, and the Zacks consensus is roughly at the midpoint. Shares are off 1.3% ahead of today’s opening bell. For more on ABT’s earnings, click here.
Defense components major Textron (TXT - Free Report) , however, performed much better this morning — 76 cents per share blew away expectations of 46 cents, and more than double the 37 cents per share a year ago. Sales of $3,296 million also impressed, both above the estimated $3,114 million and the year-ago figure of $3,093 million. Industrial sales perked up 14%, and the company saw gains from its Arctic Cat acquisition. Shares are up 6.7% in today’s pre-market. For more on TXT’s earnings, click here.
Mark Vickery
Senior Editor
Questions or comments about this article and/or its author? Click here>>
https://www.zacks.com/bio/mark-vickery
5 Medical Stocks to Buy Now
Zacks names 5 companies poised to ride a medical breakthrough that is targeting cures for leukemia, AIDS, muscular dystrophy, hemophilia and other conditions.
New products in this field are already generating substantial revenue and even more wondrous treatments are in the pipeline. Early investors could realize exceptional profits.
Click here to see the 5 stocks >>