U.S. Movers: Aetna, Altria, Biogen, Colgate, Occidental Petroleum

Mukesh Buch
25 Oct, 2012
New York City

Aetna third quarter net gained 2% on higher premiums. Altria quarterly net tumbled 44%. Biogen third quarter net jumped 13%. Colgate-Palmolive plans to reduce workforce by 6%. Occidental Petroleum third quarter net declined 22% to $1.38 billion.

[R]10:45 AM New York – Aetna third quarter net gained 2% on higher premiums. Altria quarterly net tumbled 44%. Biogen third quarter net jumped 13%. Colgate-Palmolive plans to reduce workforce by 6%. Occidental Petroleum third quarter net declined 22% to $1.38 billion.[/R]

Aetna Inc. ((AET)) gained 23 cents to $44.18 after the insurance company said sales in the third quarter ending in September advanced 6% to $8.90 billion from $8.40 billion in the same period of last year. Net income in the quarter up 2% to $499.2 million or $1.47 a diluted share compared to $490.4 million or $1.30 a share a year ago earlier.

The company added increase of revenue was primarily due to higher premiums in each of commercial, medicare and medicaid businesses.

Joseph Zubretsky, chief financial officer said we expect full year 2012 operating earnings per share guidance to approximately $5.10 per share said.

Altria Group, Inc. ((MO)) increased 16 cents to $32.29 after the holding company reported sales in the third quarter ending in September grew 2% of $6.24 billion from $6.11 billion in the same period of last year. Net income in the quarter tumbled 44% to $657 million or 32 cents a diluted share compared to $1.17 billion or 57 cents a share a year ago period.

Altria reaffirmed fiscal 2012 guidance for reported diluted earnings per share guidance growth in a range of 24% to 26% to $2.03 to $2.07 and expanded share repurchase program by $500 million.

Biogen Idec Inc. ((BIIB)) gained 2.4% or $3.48 to $145.54 after the biotechnology company stated net sales in the third quarter ending in September climbed 6% to $1.39 billion from $1.31 billion in the same period of last year. Net income in the quarter jumped 13% to $398.4 million or $1.67 a diluted share compared to $351.8 million or $1.43 a share a year ago.

Biogen updated full year 2012 financial guidance and expects revenue growth to be in the mid-to-high single digits and GAAP diluted earnings per share is expected to be between $5.63 and $5.7.

Celgene Corporation ((CELG)) added 36 cents to $74.40 after the biopharmaceutical company said sales in the third quarter ending in September increased 14% to $1.42 billion from $1.25 billion in the same period of last year. Net income in the quarter climbed 14% to $424.2 million or 97 cents a diluted share compared to $373 million or 81 cents a share a year ago earlier.

The company lifted fiscal total revenue to increase 14% or between $5.45 billion and $5.55 billion from previous range of $5.40 billion to $5.60 billion and adjusted diluted earnings per share is expected to increase 29% to a range of $4.85 to $4.90 up from previous range of $4.80 to $4.85.

F5 Networks, Inc. ((FFIV)) declined 11.9% or $11.08 to $82.24 after the network technology provider said sales in the third quarter ending in September jumped 15% to $362.6 million from $314.6 million in the same period of last year. Net income in the quarter was nearly flat to $67.7 million or 85 cents a diluted share compared to $67.6 million or 84 cents a share a year ago earlier.

For the first quarter 2013, the company expects revenue between $363 million and $370 million and GAAP earnings in the range of 86 cents to 88 cents per diluted share.

Colgate-Palmolive Company ((CL)) slipped 2.5% or $2.72 to $103.81 after the consumer products maker reported sales in the third quarter ending in September slid 1% of $4.33 billion from $4.38 billion in the same period of last year. Net income in the quarter grew 2% to $654 million or $1.36 a diluted share compared to $643 billion or $1.31 a share a year ago.

Gross profit margin increased to 58.4% from 56.2% and operating profit fell 1% to $1.03 billion in the year ago period.

North America and Latin America net sales increased 2.5% and in Europe/South Pacific dropped 11% and net sales in Asia and Africa increased 5% and 7.5% respectively.

Separately the company said it plans to reduce workforce by 6% by the end of 2016 from current 38,600 employees to reduce costs.

International Paper Company ((IP)) dropped 3.4% or $1.25 to $35.14 after the paper and paper products maker stated net sales in the third quarter ending in September advanced 6% to $7.03 billion from $6.63 billion in the same period of last year. Net income in the quarter plunged 4% to $237 million or 54 cents a diluted share compared to $468 million or $1.08 a share a year ago.

On October 24, the company said it agreed to form joint venture with Brazil based Jari Celulose, Embalagens e Papel SA and will hold 75% stake and invest approx $470 million.

Occidental Petroleum Corporation ((OXY)) slid 67 cents to $80 after the oil and gas explorer said net sales in the third quarter ending in September edged down 1% of $5.96 billion from $6.01 billion in the same period of last year. Net income in the quarter declined 22% to $1.38 billion or $1.69 a diluted share compared to $1.77 billion or $2.17 a share a year ago.

The Procter & Gamble Company ((PG)) advanced 3.5% or $2.44 to $70.52 after the consumer products maker reported net sales in the first quarter ending in September declined 4% to $20.7 billion compared to $21.5 billion in the same period of last year. Net earnings in the quarter dropped 7% to $2.81 billion or 96 cents per diluted share compared to $3.02 billion or $1.03 per share a year ago period.

The company maintained its core earnings per share guidance in the range of $3.80 to $4.00, down 1% to up 4% from prior year core earnings per share of $3.85.