U.S. Movers: AIG, Hess, Ralph Lauren, Starbucks, Thomson Reuters

Mukesh Buch
02 Nov, 2012
New York City

AIG third quarter net swung to $1.9 billion profit and Hess net surged 87%. Ralph Lauren third quarter net slumped 8% and lifted fiscal outlook. Starbucks fourth quarter net was nearly flat but lifted the annual estimate. McGraw-Hill third quarter net declined 14%.

[R]10:45 AM New York – AIG third quarter net swung to $1.9 billion profit and Hess net surged 87%. Ralph Lauren third quarter net slumped 8% and lifted fiscal outlook. Starbucks fourth quarter net was nearly flat but lifted the annual estimate. McGraw-Hill third quarter net declined 14%.[/R]

American International Group, Inc. ((AIG)) declined 5.2% or $1.86 to $33.35 after the insurance company said net premium written in the third quarter ending in September edged up 0.6% to $8.71 billion from $8.66 billion in the same period of last year. Net income in the quarter swung to $1.9 billion or $1.13 a diluted share compared to net loss of $4 billion or $2.10 a share a year ago earlier.

The insurance company said total insurance operation income soared 87% to $1.62 billion.

Alpha Natural Resources, Inc. ((ANR)) jumped 6% or 54 cents to $9.40 after the coal supplier reported total revenues in the third quarter ending in September declined 29% to $1.63 billion from $2.31 billion in the same period of last year. Net loss in the quarter swung to $46.1 million or 21 cents a diluted share compared to net income of $62.6 million or 28 cents a share a year ago earlier.

The coal supplier said declining of revenue and net income mainly due to drop in cost of sales in the West averaged $9.40 per ton slipped $11.01 in the second quarter and $10.34 in the third quarter of 2011.

For 2012, Alpha expects total shipment volumes unchanged between 100 million tons and 115 million tons

Beam Inc. ((BEAM)) gained 3.8% or $2.13 to $57.71 after the premium spirits company said net sales in the third quarter ending in September increased 8% to $627.5 million from $579.2 million in the same period of last year. Net income in the quarter tumbled 82% to $76.5 million or 47 cents a diluted share compared to $413.1 million or $2.67 a share a year ago period.

Cimarex Energy Co. ((XEC)) advanced 4.4% or $2.61 to $61.85 after the oil and gas explorer stated total revenues in the third quarter ending in September slipped 6% to $406.9 million from $433.8 million in the same period of last year. Net income in the quarter dropped 35% to $84.3 million or 97 cents a diluted share compared to $62.6 million or 28 cents a share a year ago earlier.

The company added decrease in revenues primarily because of lower gas and NGL prices, the realized gas price in the quarter declined 39% to $2.79 per thousand cubic feet and NGL prices dropped 34% to $28.55 per barrel from a year ago period.

Hess Corporation ((HES)) increased 2.5% or $1.26 to $53.89 after the energy company reported total revenues in the third quarter ending in September advanced 10% to $9.62 billion from $8.73 billion in the same period of last year. Net income in the quarter surged 87% to $557 million or $1.64 a diluted share compared to $298 million or 88 cents a share a year ago earlier.

LinkedIn Corporation ((LNKD)) gained 2.4% or $2.73 to $109.58 after the professional network provider said revenues in the third quarter ending in September climbed 81% to $252 million from $139.5 million in the same period of last year. Net income in the quarter swung to $2.3 million or 2 cents a diluted share compared to net loss of $1.6 million or 2 cents a share a year ago quarter.

The company said revenue from talent solutions products surged 95% to $138.4 million and revenue from marketing solutions products climbed 60% to $64 million and revenue from premium subscriptions products jumped 74% to $49.6 million.

The company lifted its expected revenue guidance between $939 million and $944 million from the prior guidance of $915 to $925 million.

Ralph Lauren Corporation ((RL)) climbed 2.6% or $4.20 to $163.24 after the apparel and accessories distributor stated total revenues in the third quarter ending in September slid 2% to $1.86 billion from $1.90 billion in the same period of last year. Net income in the quarter slumped 8% to $213.7 million or $2.29 a diluted share compared to $233.5 million or $2.46 a share a year ago earlier.

The company expects consolidated net revenues for fiscal 2013 to increase by 2% to 3%.

Starbucks Corporation ((SBUX)) surged 10.1% or $4.73 to $51.35 after the specialty coffee retailer reported total revenues in the fourth quarter ending in September jumped 11% to $3.64 billion from $3.03 billion in the same period of last year. Global comparable store sales increased 6% and comparable store sales in U.S. jumped 7% and in China/Asia/Pacific regions climbed 10%.

Net income in the quarter was nearly flat to $359 million or 46 cents a diluted share compared to $358.5 million or 47 cents a share a year ago earlier.

Starbucks continues to target revenue growth of about 10% to 13% mainly driven by mid-single-digit comparable store sales growth and lifting its earnings per share to a range between $2.06 and $2.15 representing growth in the range of 15% to 20%.

Thomson Reuters Corporation ((TRI)) slipped 1.2% or 36 cents to $28.16 after the financial information and news publisher stated revenue in the third quarter ending in September declined 7% to $3.22 billion from $3.45 billion in the same period of last year. Net earnings in the quarter soared 24% to $474 million or 56 cents a diluted share compared to $381 million or 44 cents a share a year ago.

Thomson Reuters reaffirmed 2012 revenues to grow low single-digits and expects adjusted EBITDA margin between 27% and 28%.

The McGraw-Hill Companies, Inc ((MHP)) decreased 1.2% or 74 cents to $55.76 after the print and publishing company said revenue in the third quarter ending in September grew 2% to $1.95 billion from $1.91 billion in the same period of last year. Net income in the quarter declined 14% to $314 million or $1.10 a diluted share compared to $366 million or $1.21 a share a year ago period.

The publisher lifted fiscal 2012 adjusted diluted earnings per share guidance in the range of $3.35 to $3.40.

On November 1 the publisher has completed its acquisition of Kingsman SA, a privately-held, Switzerland based price information and analytics provider of the global sugar and bio-fuels markets. The purchase price of acquisition was not disclosed.

Valeant Pharmaceuticals International, Inc. ((VRX)) slid 2 cents to $56.74 after the pharmaceutical company stated total revenues in the third quarter ending in September surged 47% to $884 million from $601 million in the same period of last year. Net income in the quarter plunged 81% to $7.65 million or 2 cents a diluted share compared to $40.8 million or 13 cents a share a year ago quarter.