U.S. Movers: BorgWarner, Cummins, GM, Hyatt, MasterCard

Mukesh Buch
31 Oct, 2012
New York City

American Tower third quarter net dropped 22% and lifted fiscal outlook. BorgWarner quarterly net plunged 29% and revised guidance. Cummins net dropped 22% as sales dropped. GM third quarter net declined 12% and WEX net tumbled 70%. MasterCard third quarter net climbed 8% to $772 million.

[R]10:45 AM New York – American Tower third quarter net dropped 22% and lifted fiscal outlook. BorgWarner quarterly net plunged 29% and revised guidance. Cummins net dropped 22% as sales dropped. GM third quarter net declined 12% and WEX net tumbled 70%. MasterCard third quarter net climbed 8% to $772 million.[/R]

American Tower Corporation ((AMT)) gained 61 cents to $73.98 after the holding company said revenue in the third quarter ending in September climbed 13% to $713.3 million from $630.4 billion in the same period of last year. Net income in the quarter dropped 22% to $232.1 million or 58 cents a diluted share compared to net loss of $15.7 million or 4 cents a share a year ago.

For the fiscal 2013, the company lifted its revenue guidance to a range between $2.77 billion and $2.81 billion, an increase of 16.9% to 20.3% and net income in the range of $625 million to $660 million, an increase of 68.3%.

AGCO Corporation ((AGCO)) slumped 3.6% or $1.75 to $45.82 after the agricultural equipments maker reported net sales in the third quarter ending in September advanced 9% to $2.3 billion from $2.1 billion in the same period of last year. Net income in the quarter soared 12% to $94.5 million or 96 cents a diluted share compared to $84.4 million or 87 cents a share a year ago earlier.

The company expects net sales for the year in the range of $9.8 billion to $10 billion and adjusted net income per share of approximately $5.20.

BorgWarner Inc. ((BWA)) increased 2.6% or $1.68 to $65.39 after the automotive system supplier said net sales in the third quarter ending in September slipped 5% to $1.69 billion from $1.79 billion in the same period of last year. Net earnings in the quarter plunged 29% to $101 million or 85 cents a diluted share compared to $142 million or $1.15 a share a year ago period.

The company revised full year guidance and now expects net sales growth of 0% to 1% compared with earlier expectation of 4% to 6% and net earnings now expected between $4.90 and $5 per diluted share.

Cummins Inc. ((CMI)) gained 79 cents to $94.55 after the diesel engine maker reported revenue in the third quarter ending in September declined 11% to $4.12 billion from $4.63 billion in the same period of last year. Net income in the quarter dropped 22% to $352 million or $1.86 a diluted share compared to $452 million or $2.35 a share a year ago.

The company said revenues declined 21%.from international markets. Sales in engine segment declined 14% to $2.5 billion and in components segments dropped 8% to $938 million. Sales at power generation segment fell7% to $814 million.

Cummins expects full year revenues to be $17 billion with EBIT in the range of 13.5% of sales.

Cameron International Corporation ((CAM)) declined 5.9% or $3.05 to $48.15 after the oil well equipments provider stated total revenues in the third quarter ending in September jumped 31% to $2.22 billion from $1.69 billion in the same period of last year. Net income in the quarter surged 36% to $223.6 million or 90 cents a diluted share compared to $164.5 million or 67 cents a share a year ago quarter.

The company added total orders increase of 15% to $2.3 billion and backlog at the end of the quarter was $7.6 billion, growth of 30% from $5.8 billion a year ago.

Cameron expects earnings for the fourth quarter are to be in the range of 95 cents to 97 cents per share.

Eaton Corporation ((ETN)) climbed 4.6% or $2.07 to $47.19 after the power management company reported net sales in the third quarter ending in September dropped 4% to $3.95 billion from $4.12 billion in the same period of last year. Net income in the quarter declined 5% to $345 million or $1.02 a diluted share compared to $365 million or $1.07 a share a year ago.

Alexander M. Cutler, Eaton chairman and chief executive officer, said, “Our results in the fourth quarter will also be impacted by the expected close of the Cooper acquisition.”

General Motors Company ((GM)) soared 6.3% or $1.51 to $24.79 after the automobile company reported revenue in the third quarter ending in September climbed 2% to $37.6 billion from $36.7 billion in the same period of last year. Net earnings in the quarter declined 12% to $1.5 billion or 89 cents a diluted share compared to $1.7 billion or $1.03 a share a year ago period.

The company said consolidated adjusted fourth quarter EBIT will follow typical seasonal trends with results estimated to be similar or slightly better than the same period a year ago.

Garmin Ltd. ((GRMN)) increased 1.3% or 52 cents to $39.64 after the Switzerland based communication equipments provider said total revenue in the third quarter ending on September 29 grew 1% to $672.4 million from $667 million in the same period of last year. Net income in the quarter slipped 7% to $140.3 million or 72 cents a diluted share compared to $150.4 million or 77 cents a share a year ago earlier.

The Garmin lifted full year earnings per share guidance to $2.75 to $2.90.

Hyatt Hotels Corporation ((H)) slumped 4% or $1.54 to $36.52 after the hospitality company reported total revenue in the third quarter ending on September 30 jumped 9% to $977 million from $897 million in the same period of last year. Net income in the quarter climbed 64% to $23 million or 14 cents a diluted share compared to $14 million or 8 cents a share a year ago earlier.

MasterCard Inc. ((MA)) increased 3.97 to $456.95 after the payment network operator said net revenue in the third quarter ending on September jumped 5% to $1.92 billion from $1.82 billion in the same period of last year. Net income in the quarter climbed 8% to $772 million or $6.17 a diluted share compared to $717 million or $5.63 a share a year ago earlier.

Worldwide purchase volume climbed 12% to $676 billion from a year ago and as of September 30 the company’s customers had issued 1.9 billion MasterCard and Maestro-branded cards. Processed transactions increased 24% to 8.7 billion and cross-border volume increased 14%.

WEX Inc., formerly Wright Express Corporation ((WXS)) gained 58 cents to $72.69 after the card payment solution provider stated total revenues in the third quarter ending in September increased 6% to $161 million from $151.9 million in the same period of last year. Net income in the quarter tumbled 70% to $14.3 million or 37 cents a diluted share compared to $48.1 million or $1.23 a share a year ago period.

From October 25, the company has changed the name from Wright Express Corporation to WEX Inc with same ticker name WXS.

For the fourth quarter WEX expects revenue between $162 million and $169 million and adjusted net income in the range of $39 million to $42 million and diluted earnings per share to be $1.01 to $1.08.

For the full year, the company expects revenue in the range of $616 million to $623 million and adjusted net income between $156 million and $159 million and diluted earnings per share of $3.99 to $4.06.