U.S. Movers: iGATE, JPMorgan, Lexmark Intl., Wells Fargo

Mukesh Buch
13 Jul, 2012
New York City

JPMorgan second quarter net declined 9% to $5 billion and restated first quarter net income. Lexmark cuts second quarter outlook. Wells Fargo second quarter net soared 17% to $4.6 billion and agreed to pay $175 million to settle racial biases in mortgage approval.

[R]10:45 AM New York – JPMorgan second quarter net declined 9% to $5 billion and restated first quarter net income. Lexmark cuts second quarter outlook. Wells Fargo second quarter net soared 17% to $4.6 billion and agreed to pay $175 million to settle racial biases in mortgage approval.[/R]

Acme Packet, Inc. ((APKT)) increased 1.5% or 24 cents to $15.85 after the communications service may repurchase of approx $200 million of the common stock in the next twelve months.

Bank of the Ozarks, Inc. ((OZRK)) gained 4.9% or $1.51 to $31.90 after the regional bank reported revenue in the second quarter ending in June fell 0.4% to $42.3 million compared to $42.5 million in the same period last year. Net income in the quarter plunged 62% to $19.1 million or 55 cents per diluted share compared to $50.2 million or $1.46 per share a year ago earlier.

iGATE Corporation ((IGTE)) advanced 4.3% or 70 cents to $16.70 after the outsource provider reported revenue in the second quarter ending in June soared 57.3% to $268 million compared to $170.4 million in the same period last year. Net income in the quarter surged more than three-folds to $12.7 million or 7 cents per diluted share compared to $4.0 million or 2 cents per share a year ago earlier.

JPMorgan Chase & Co. ((JPM)) gained 3.5% or $1.22 to $35.26 after the global bank reported total revenue in the second quarter ending in June slumped 17% to $22.2 billion compared to $26.8 billion in the same period last year. Net income in the quarter declined 9% to $5.0 billion or $1.21 per diluted share compared to $5.4 billion or $1.27 per share a year ago quarter.

The global bank also confirmed that year-to-date losses from the failed derivative trade so far reached $5.8 billion and did not specify if all the losing trades have been completely unwound. The bank also said it will restate its first quarter earnings and believes that not all traders had fairly valued all positions in the synthetic trade conducted by its investment office in London.

Lexmark International, Inc. ((LXK)) declined 10.1% or $2.46 to $21.85 after the printers maker said sales in the second quarter is expected to decline about 12% from the previous estimate of a fall between 7% and 9% and earnings per share are now expected to be in the range of 53 cents to 55 cents compared to previous estimate of 87 cents to 89 cents.

Wells Fargo & Company ((WFC)) increased 2.2% or 74 cents to $33.59 after the bank and holding company reported total revenue in the second quarter ending in June rose 4.4% to $21.29 billion compared to $20.39 billion in the same period last year. Net income in the quarter soared 17% to $4.6 billion or 82 cents per diluted share compared to $3.9 billion or 70 cents per share a year ago quarter.

Wells Fargo settled with the U.S. Department of Justice and agreed to pay at least $175 million for biases in issuing mortgages to African-American and Hispanic borrowers.

Webster Financial Corporation ((WBS)) rose 1.6% or 35 cents to $21.79 after the regional bank reported revenue in the second quarter ending in June fell 0.9% to $174.6 million compared to $176.1 million in the same period last year. Net income in the quarter surged 22% to $40.6 million or 44 cents per diluted share compared to $33.3 million or 36 cents per share a year ago quarter.