Page 25 - atoday

BUSINESS A25
Tuesday 20 October 2015

Morgan Stanley’s earnings are hit by bond trading slump

KEN SWEET preferred shareholders for The jolt in financial markets half from $1.2 billion a year Stanley’s chairman and
AP Business Writer the three-month period last quarter caused the earlier. CEO, said in a statement.
NEW YORK (AP) — Turbu- ending in September, the major U.S. banks to report Most of that drop could In a conference call with in-
lence in global markets bank said Monday, com- drops in quarterly earnings, be attributed to the bank’s vestors, Gorman noted that
hit Morgan Stanley’s busi- pared with $1.63 billion a but the disruption seemed bond trading operations, last quarter was the worst
ness particularly hard in the year earlier. to impact Morgan Stanley which had net revenue of quarter for Morgan Stan-
third quarter, sending the On a per-share basis, the more than its peers. The $583 million versus $997 mil- ley’s fixed-income busi-
bank’s earnings down 42 bank earned 48 cents per bank’s institutional securi- lion the year before. Cor- ness since the financial
percent, well short of ana- share, compared with 84 ties division, which includes porate bond underwriting crisis. The bank set aside
lysts’ estimates. cents a year earlier. That Morgan Stanley’s invest- was also down. $3.4 billion for employee
The New York-based in- was far below the 67 cents ment banking and trad- “The volatility in global mar- compensation this quar-
vestment bank and wealth per share that analysts ing operations, had net in- kets in the third quarter led ter, down from $4.2 billion
advisory firm earned $939 were looking for, accord- come of $688 million in the to a difficult environment,” a year earlier, as a result of
million after payments to ing to FactSet. quarter, down by nearly James Gorman, Morgan the struggling markets.q

Oprah Winfrey goes on diet, gains Weight Watchers deal

JOSEPH PISANI ness for its products and Oprah Winfrey is seen at The TimesCenter in New York. Weight health and wellness, rather
AP Business Writer services. Additionally, she Watchers announced Monday, Oct. 19, 2015, that Winfrey is tak- than just dropping pounds.
NEW YORK (AP) — Oprah will make appearances on ing an approximately 10 percent stake in Weight Watchers for “We are expanding our
Winfrey, who has publicly the company’s behalf. about $43.2 million and joining the weight management com- purpose from focusing on
struggled with her weight The Weight Watchers en- pany’s board. weight loss alone to more
for decades, is going on a dorsement is a departure broadly helping people
diet again. But this time she for Winfrey. Throughout her (Photo by Greg Allen/Invision/AP) lead a healthier, happier
stands to gain a lot of mon- talk show reign, Winfrey life,” said Weight Watch-
ey from her efforts. did not make money off make the lasting shift that I lution.” ers President and CEO Jim
Weight Watchers said Mon- endorsements, Garthwaite and so many of us who are Weight Watchers is no Chambers said in a state-
day that it signed a five- said. Since leaving the talk struggling with weight have stranger to celebrities. It ment.
year deal with the former show, she has also lent her longed for,” Winfrey said in has paid singers Jessica The company has been
talk show host. Winfrey, name to Starbucks Corp., a statement. “I believe in Simpson and Jennifer Hud- hurt by the popularity of
a co-owner of OWN: The which sells Oprah-branded the program so much I de- son to promote its plan. fitness trackers and other
Oprah Winfrey Network, is tea drinks. cided to invest in the com- But the deal with Winfrey health apps. MyFitnessPal
paying about $43.2 million Winfrey is buying about pany and partner in its evo- is a shift to focus on overall lets users track steps, work-
for a 10 percent stake in 6.4 million shares of Weight outs and the amount of
the weight loss company. Watchers at $6.79 per calories they eat for free
The deal is already pay- share. She will also receive on its app. Buying a FitBit
ing off: Weight Watchers options to buy an addition- tracker unlocks similar free
shares more than doubled al 5 percent of the com- online tools. Weight Watch-
after the partnership was pany’s fully diluted shares. ers charges for its online
announced, earning Win- She is also joining the com- food tracking, and weekly
frey about $45 million on pany’s board. meetings and weigh ins
paper. Winfrey will use the Shares of New York-based have been a hallmark of its
Weight Watchers mobile Weight Watchers Interna- plan. Its shares were down
app and work with a per- tional Inc. soared $7.13, or 73 percent for the year
sonal coach, the company 105 percent, to close at through Friday. The com-
said. She has also agreed $13.92 Monday. pany’s earnings have fall-
to let Weight Watchers use “Weight Watchers has giv- en every year since 2011.
her name, image and like- en me the tools to begin to q

Valeant tops Street 3Q forecasts, boosts outlook

The Associated Press company, known for gob- Revenue rose 36 percent look to between $11 billion Valeant may sell its neuro
Valeant Pharmaceuticals bling up smaller drugmak- to $2.79 billion, also edging and $11.2 billion from $10.7 and other portfolio, which
posted better-than-ex- ers to get their products out expectations. billion to $11.1 billion. had been the subject of its
pected third-quarter prof- and then slashing jobs and The company raised its Shares of Valeant Pharma- price increase strategy.
its and raised its outlook research programs, jacked fourth-quarter profit esti- ceuticals International Inc. In a conference call Mon-
for the year, but shares slid up prices on drugs shortly mate to between $4 and slid more than 7 percent, or day, executives addressed
with the company under in- after buying them from $4.20 per share from prior $13.73, to close at $163.83. the pricing issue, saying the
creasing pressure about its Marathon Pharmaceuticals guidance of $3.98 to $4.18. Shares hit an all-time high in company will focus less on
drug prices. in February, tripling one and It now expects fourth-quar- August, “mispriced” products as
The company revealed raising the other sixfold. ter revenue of between but have been in steep de- its portfolio shifts to newer
last week that federal pros- Valeant earned $49.5 mil- $3.25 billion and $3.45 bil- cline as scrutiny over the and higher volume growth
ecutors have subpoenaed lion, or 14 cents per share. lion, up from prior guidance company’s drug prices has products.
documents on its drug pric- Earnings adjusted for one- of $3.2 billion to $3.4 billion. increased. Valeant’s businessmodel
ing and other policies. time gains and costs were For the full-year, the com- S&P Capital kept its “Buy” has historically involved
The Laval, Quebec, com- $2.74 per share, pany raised profit guid- rating on Valeant shares acquiring drugs that it con-
pany drew Congress’ inter- much better than the $2.68 ance to between $11.67 but slashed its 12-month siders undervalued, or “mis-
est following its purchase of projected by analysts, ac- and $11.87 per share from price target on the stock to priced,” and then raising
the life-saving heart drugs cording to a survey by $11.50 to $11.80 per share. $46 from $234. the price to what it deter-
Nitropress and Isuprel. The Zacks Investment Research. It boosted its revenue out- The company noted that mines is a proper value.q