U.S. Movers: Amazon, Apple, Comcast, Merck, Rockwell, VeriSign

Mukesh Buch
26 Oct, 2012
New York City

Amazon third quarter net swung to loss and Aon gained 3% on lower tax rate. Comcast profit surged 132% on higher ad rates for Olympics. Merck quarterly net increased and cuts outlook. Rockwell Collins fourth quarter net dropped 13% and reiterated fiscal guidance.

[R]10:45 AM New York – Amazon third quarter net swung to loss and Aon gained 3% on lower tax rate. Comcast profit surged 132% on higher ad rates for Olympics. Merck quarterly net increased and cuts outlook. Rockwell Collins fourth quarter net dropped 13% and reiterated fiscal guidance.[/R]

Amazon.com, Inc. ((AMZN)) advanced 3.1% or $7.11 to $230.21 after the online retailer said net sales in the third quarter ending in September surged 27% to $13.81 billion from $10.88 billion in the same period of last year. Net loss in the quarter swung to $274 million or 60 cents a diluted share compared to net income of $63 million or 14 cents a share a year ago.

The loss includes $169 million charge linked to asset impairment related to LivingSocial.

For the fourth quarter, the company expects net sales to increased in the range of 16% to 31% or between $20.25 billion and $22.75 billion.

Apple Inc. ((AAPL)) slipped 1.1% or $6.58 to $603.03 after the communication and media devices maker said revenue in the fourth quarter ending in September soared 27% to $36 billion from $28.3 billion in the same period of last year. Net income in the quarter surged 24% to $8.2 billion or $8.67 a diluted share compared to $6.6 billion or $7.05 a share a year ago earlier.

Apple added gross margin declined to 40% from 40.3% in the year ago period and international sales accounted for 60% of the quarter’s revenue. Apple sold 26.9 million iPhones in the quarter this represents 58% unit growth and sold 14 million iPads during the quarter increase of 26% unit.

Apple declared a cash dividend of $2.65 per share.

The company expects fiscal first quarter revenue of about $52 billion and diluted earnings per share of about $11.75.

Aon plc ((AON)) increased 1.9% or $1.01 to $53.53 after the UK based insurance company reported total revenues in the third quarter ending in September grew 1% of $2.74 billion from $2.72 billion in the same period of last year. Net income in the quarter gained 3% to $204 million or 62 cents a diluted share compared to $198 million or 59 cents a share a year ago period.

The Aon benefited from effective tax rate on net income from continuing operations declined 23.2% from 28.9% in the prior year quarter and anticipated of 26% in the fourth quarter of 2012.

Comcast Corporation ((CMCSA)) increased 2.7% or $1.01 to $37.38 after the communication service provider stated net sales in the third quarter ending in September climbed 15% to $16.54 billion from $14.34 billion in the same period of last year. Net income in the quarter surged 132% to $2.11 billion or 78 cents a diluted share compared to $908 million or 33 cents a share a year ago.

Revenues in cable communications segment rose 7% to $10 billion and NBCUniversal segment benefited from Olympics games and climbed 31% to $7 billion. Revenue from broadcast television segment soared 84% and in film entertainment segment jumped 23.6%.

Merck & Co., Inc. ((MRK)) gained 3 cents to $46.33 after the health care company reported sales in the third quarter ending in September slipped 4% to $11.49 billion from $12.02 billion in the same period of last year. Net income in the quarter increased 2% to $1.73 billion or 56 cents a diluted share compared to $1.69 billion or 55 cents a share a year ago epriod.

Merck expects full year revenues to be at or near to 2011 levels but its narrows non-GAAP earnings per share in the range of $3.78 and $3.82 and GAAP between of $2.08 and $2.24.

Rockwell Collins, Inc. ((COL)) increased 2.9% or $1.55 to $54.86 after the aerospace and defense products maker said sales in the fourth quarter ending in September slid 2% to $1.27 billion from $1.30 billion in the same period of last year. Net income in the quarter dropped 13% to $152 million or $1.06 a diluted share compared to $175 million or $1.13 a share a year ago earlier.

For the fiscal 2013, the company reiterated its guidance for total sales in the range of $4.6 billion to $4.7 billion and earnings per share from continuing operations between $4.30 and $4.50.

Ventas, Inc. ((VTR)) gained 14 cents to $63.16 after the real estate investment company stated total revenues in the third quarter ending in September advanced 15% to $641.9 million from $555.4 million in the same period of last year. Net income in the quarter surged 132% to $111.9 million or 38 cents a diluted share compared to $102.9 million or 35 cents a share a year ago period.

VeriSign, Inc. ((VRSN)) plunged 18.2% or $8.49 to $38.11 after the internet infrastructure service provider reported sales in the third quarter ending in September climbed 13% to $223.5 million from $197 million in the same period of last year. Net income in the quarter soared 39% to $80.4 million or 47 cents a diluted share compared to $57.8 million or 36 cents a share a year ago.

The company said operating margin increased 52% from 45% for the same quarter in 2011.

At the end of third quarter Verisign registry services added 1.37 million new customers with nearly 120 million active domain names representing a 7.1% increase year over year.

The company said U.S. Department of Commerce may not approve the renewal of its .com registry agreement before expiry date of November 30.