U.S. Movers: Capital One, eBay, Danaher, Morgan Stanley, Verizon

Mukesh Buch
19 Jul, 2012
New York City

Capital One second quarter net plunged 90% and eBay second quarter net jumped 144% to $692 million. Johnson Controls net surged 17% and Morgan Stanley net swung to $564 million profit. Verizon second quarter net climbed 13.7% to $1.83 billion.

[R]10:40 AM New York – Capital One second quarter net plunged 90% and eBay second quarter net jumped 144% to $692 million. Johnson Controls net surged 17% and Morgan Stanley net swung to $564 million profit. Verizon second quarter net climbed 13.7% to $1.83 billion.[/R]

American Express Company ((AXP)) slipped 3.8% or $2.23 to $56.06 after the credit card service provider reported total revenue in the second quarter ending in June grew 5% to $7.96 billion compared to $7.62 billion in the same period last year. Net income in the quarter rose 1% to $1.34 billion or $1.15 per diluted share compared to $1.33 billion or $1.10 per share a year ago earlier.

The charge card services provider said consolidated provisions for losses increased 29% to $461 million from $357 million a year ago. Net income in the U.S. card services increased 8% to $718 million and net income of international card services rose 11% to $178 million.

Capital One Financial Corporation ((COF)) gained 4.7% or $2.62 to $57.51 after the financial services provider reported total revenue in the second quarter ending in June rose 2% to $5.1 billion compared to $4 billion in the same period last year. Net income in the quarter plunged 90% to $92 million or 16 cents per diluted share compared to $911 million or $1.97 per share a year ago period.

Average loans in the quarter increased 26% to $192.6 billion mainly due to the addition of the HSBC U.S. Card portfolio and the full quarter impact of the ING Direct acquisition.

eBay Inc. ((EBAY)) advanced 8.2% or $3.33 to $43.79 after the online marketing company reported total revenue in the second quarter ending in June soared 23% to $3.40 billion compared to $2.76 billion in the same period last year. Net income in the quarter jumped 144% to $692 million or 53 cents per diluted share compared to $283 million or 22 cents per share a year ago.

Marketplaces, PayPal and GSI reported strong growth in the quarter. PayPal delivered strong performance with 113.2 million active registered accounts a 13% increase from the second quarter of last year and revenue of PayPal increased 26% from a year ago.

Johnson Controls, Inc. ((JCI)) dropped 8.2% or $2.34 to $25.98 after the automotive interiors provider reported total revenue in the third quarter ending in June rose 2% to $10.6 billion compared to $10.4 billion in the same period last year. Net income in the quarter surged 17% to $417 million or 61 cents per diluted share compared to $357 million or 52 cents per share a year ago.

The automotive interiors said due softness in global markets and expected lower Euro, fourth quarter earnings to be rise break even to 5% from year ago compared to earlier expectations for double-digit.

Morgan Stanley ((MS)) slumped 4.7% or 66 cents to $13.33 after the financial holding company reported net revenue in the second quarter ending in June declined 24% to $6.95 billion compared to $9.21 billion in the same period last year. Net income in the quarter swung to $564 million or 29 cents per diluted share compared to net loss of $558 million or 38 cents per share a year ago.

Fixed income, commodity sales and trading net revenues declined to $770 million compared with $1.9 billion a year ago.

U.S. Bancorp ((USB)) gained 1.1% or 38 cents to $33.86 after the holding company reported total revenue in the second quarter ending in June increased 8.1% to $5.07 billion compared to $4.69 billion in the same period last year. Net income in the quarter surged 15.3% to $1.34 billion or 71 cents per diluted share compared to $1.17 billion or 60 cents per share a year ago.

The bank said increase in revenue and earnings was driven by lower provision for credit losses and strong new lending activity of $67.2 billion during the quarter. For real estate $36.7 billion and for mortgage and other retail loan was $28.1 billion.

Verizon Communications Inc. ((VZ)) slid 1.8% or 84 cents to $45.05 after the communications provider stated second quarter operating revenues rose 3.7% to $28.6 billion compared to a quarter a year ago. Net income attributable to Verizon climbed 13.7% to $1.83 billion or 64 cents per diluted share from $1.61 billion or 57 cents per share a year ago.