Afternoon BUZZERS: IBM and eBay POP, Walgreen and Express Scripts Team-Up Again
International Business Machines (NYSE:IBM) shares were up 3.92 percent in afternoon trading. Late Wednesday, the company announced that net income in the second-quarter increased 5.9 percent to $3.88 billion ($3.34 per share), compared to $3.66 billion ($3 per share) a year earlier. “In the second quarter, we delivered strong profit, earnings per share and free cash flow growth. This performance reflects continued strength in our growth initiatives and investments in higher value opportunities,” said Ginni Rometty, chief executive officer.
Shares of Morgan Stanley (NYSE:MS) dropped 5.29 percent this afternoon. The bank reported that net income for the second-quarter fell 50.5 percent to $591 million (29 cents per share), compared to $1.19 billion (38 cents per share) a year earlier. Revenue also declined 24.5 percent to $6.95 billion. Morgan Stanley fell short of the mean analyst estimate of 44 cents per share.
eBay (NASDAQ:EBAY) shares climbed 8.38 percent this afternoon. Late Wednesday, the company reported that net income in the second-quarter more than doubled to $692 million (53 cents per share), compared to $283.4 million (22 cents per share) a year earlier. Revenue also increased 23.1 percent to $3.4 billion. “We delivered a great second quarter, driven by eBay Marketplaces’ best performance in years, strong growth at PayPal and strong same-store-sales growth for GSI’s large retail customers,” said John Donahoe, president and chief executive officer. “Our entire company is strong, but we’re particularly pleased with eBay Marketplaces, which delivered its strongest organic growth in gross merchandise volume, excluding vehicles, since 2006.”
Walgreen (NYSE:WAG) shares surged 11.92 percent today. The pharmacy chain finally reached a deal with Express Scripts (NASDAQ:ESRX) and will begin filling prescriptions in the network starting in mid-September. “We are in the business of providing a broad range of pharmacy, health and wellness services to help meet the needs of all of our customers,” said Greg Wasson, president and CEO of Walgreens, in a statement. “I am pleased that Walgreens and Express Scripts have been able to reach an agreement that works for both parties and is consistent with our company’s principles.
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