U.S. Movers: ABB, Amgen, Chubb, Facebook, Starbucks, United Technologies

Mukesh Buch
27 Jul, 2012
New York City

ABB second quarter net declined 27%. AstraZeneca second quarter net plunged 46% to $1.24 billion. Facebook second quarter net swung to $157 million loss. United Technologies net rose and completed the acquisition of Goodrich.

[R]9:55 AM New York – ABB second quarter net declined 27%. AstraZeneca second quarter net plunged 46% to $1.24 billion. Facebook second quarter net swung to $157 million loss. United Technologies net rose and completed the acquisition of Goodrich.[/R]

ABB Ltd ((ABB)) increased 1.5% or 25 cents to $17.22 after the Switzerland based power and automation products maker reported revenues in the second quarter ending in June edged down 0.2% to $9.66 billion compared to $9.68 billion in the same period of last year. Net income in the quarter declined 27% to $656 million or 29 cents per diluted share compared to $893 million or 39 cents per share a year ago earlier.

ABB said the acquisition of Thomas & Betts significantly expanded operations in North America and orders in power divisions were “steady to higher” in most key markets including U.S., Brazil, China, and India. Power orders were steady in Europe. Revenues in the power divisions were flat compared to the same quarter a year ago.

Amgen Inc. ((AMGN)) gained 3.4% or $2.71 to $82 after the biotechnology company reported revenues in the second quarter ending in June soared 13% to $4.48 billion compared to $3.96 billion in the same period of last year. Net income in the quarter advanced 8.5% to $1.27 billion or $1.61 per diluted share compared to $1.17 billion or $1.25 per share a year ago.

For the full year the company now expects total revenues to be in the range of $16.9 billion to $17.2 billion and adjusted earnings per share in the range of $6.20 to $6.35.

AstraZeneca Plc ((AZN)) rose 30 cents to $46.10 after the UK based biopharmaceutical company reported revenues in the second quarter ending in June fell 21% to $6.66 billion compared to $8.43 billion in the same period of last year. Net income in the quarter plunged 45.8% to $1.24 billion or $1.27 per diluted share compared to $2.29 billion or $1.53 per share a year ago period.

CA, Inc. ((CA)) declined 7.6% or $2.01 to $24.30 after the software service provider reported total revenues in the first quarter ending in June decreased 2% to $1.15 billion compared to $1.16 billion in the same period of last year. Net income in the quarter fell 0.4% to $240 million or 51 cents per diluted share compared to $241 million or 47 cents per share a year ago period.

Facebook, Inc. ((FB)) plunged 15.1% or $4.06 to $22.78 after the social network site operator reported revenue in the second quarter ending in June edged up to $1.18 billion compared to $895 million in the same period of last year. Net loss in the quarter swung to $157 million or 8 cents per diluted share compared to net income of $240 million or 11 cents per share a year ago.

Occidental Petroleum Corporation ((OXY)) rose 13 cents to $87.45 after the oil and gas producer reported net sales in the second quarter ending in June plunged 6.5% to $5.77 billion compared to $6.17 billion in the same period of last year. Net income in the quarter plunged 27% to $1.33 billion or $1.64 per diluted share compared to $1.82 billion or $2.23 per share a year ago earlier.

Starbucks Corporation ((SBUX)) dropped 9.8% or $5.15 to $47.25 after the specialty coffee maker reported net sales in the third quarter ending on July 1 increased 13% to $3.3 billion compared to $4.19 billion in the same period of last year. U.S. comparable store sales increased 7%; global comparable store sales increased 6% and development channels revenues increased 45% to $316 million.

Net earnings in the quarter soared 19.3% to $333.1 million or 43 cents per diluted share compared to $279.1 million or 36 cents per share a year ago period.

The coffee maker updated its fourth quarter revenue growth between 10% and 12% and earnings per share between 44 cents to 45 cents representing growth of 19% to 22% and provided initial target for fiscal 2013 revenue growth of 10% to 13% and earnings per share of $2.04 to $2.14 representing growth between 15% and 20%.

The Chubb Corporation ((CB)) gained 2.7% or $1.94 to $71.49 after the holding company reported net premiums written in the second quarter ending in June increased 1.3% to $3.10 billion compared to $3.06 billion in the same period of last year. Net income in the quarter decreased 3.6% to $404 million or $1.48 per diluted share compared to $419 million or $1.42 per share a year ago.

United Technologies Corporation ((UTX)) rose 7 cents to $73 after the aerospace products provider reported net sales in the second quarter ending in June slipped 5% to $13.81 billion compared to $14.47 billion in the same period of last year. Net income in the quarter rose 0.8% to $1.33 billion or $1.47 per diluted share compared to $1.32 billion or $1.44 per share a year ago earlier.

The company now expects fiscal sales between $58 billion and $59 billion and earnings per share between $5.25 and $5.35 from prior expectation of $5.30 to $5.50.

United Technologies completed the acquisition of Rolls Royce’s interests in international aero engines on June 29 and for proposed acquisition of Goodrich Corporation the company anticipates receiving full regulatory approval from U.S. and UK and closing the acquisition by the end of this week. The proposed acquisition was announced on Sept. 21, 2011

On July 25 the company made agreement to sell its Milton Roy Co., Sullair Corp. and Sundyne Corp. industrial of products to BC Partners and The Carlyle Group for $3.46 billion. The transaction is subject to regulatory approval and expected to close by year end.