Stocks in the news: AIG, Crocs, CBS
American International Group Inc. (AIG), which reported earnings Friday morning, saying it posted its first profit since 2007, earning $1.82 billion, or $2.30 a share in the second quarter, compared to a loss of $5.36 billion, $41.13 a share a year ago. Adjusted net income was $2.0 billion and total revenue for the second quarter was $29.52 billion, versus $19.93 billion a year ago. Analysts polled by Thomson Reuters had expected the company to earn $1.67 a share. Shares jumped over 17% in pre-market trading after shooting up over 60% the past couple of days.
Royal Bank of Scotland (RBS) reported wider losses on Friday of 1 billion-pound ($1.7 billion) in the first half as investment banking profits failed to offset bad debts and the 70 percent state-owned lender warned of more "poor" results to come before its own and the economy's recovery. Results may not improve significantly until 2011, it said as it also appointed a new CFO. Investors, no longer expecting a profit in the second half punished the shares, taking them down over 13 percent.
Crocs (CROX) reported second-quarter earnings late Thursday, posting a smaller second-quarter loss, which topped analyst expectation by a wide margin and gave the Street cause to celebrate. Upgrades weren't far behind with Piper Jaffray upgrading the stock from Neutral to Overweight and upping the target price from $3 to $7.50. Investors pushed the shares up over 30 percent in pre-market trade.
CBS (CBS) also reported Q2 earnings on Thursday after the bell. The media company made an adjusted 8 cents per share compared to adjusted 49 cents per share last year, and beat expectations by a penny. It said, however, that ad slowdown is abating. CBS was upgraded by Benchmark to Buy from Hold. Shares climbed over 9 percent ahead of the bell.
Magna International Inc. (MGA), the Canadian auto parts maker that is bidding for General Motors' European Opel business, said Friday it lost $205 million in the second quarter as the global recession depressed auto sales and demand for its products. Results came in below expectations.
Fannie Mae (FNM) reported a $14.8 billion quarterly net loss that it said would force it to go to the U.S. Treasury trough a third time for money to stay in business.
- Marsh & McLennan (MMC) was upgraded to Buy from Neutral at UBS as the broker said shares have underperformed the market and other financials. Shares climbed 3.75 percent ahead of the bell.
- Urban Outfitters Inc. (URBN) was upgraded to Equal Weight from Underweight by Barclays Capital. Shares were up 2.5 percent in pre-market trade.
- Kraft (KFT) was upgraded by Credit Suisse from Neutral to Outperform. Shares gained 1.5 percent.
Continental Airlines Inc. (CAL) shares were off 7.5 percent in premarket trading after it said it would sell 14.4 million Class B common shares next week.
Sanofi-Aventis (SNY) said that its vaccine division, Sanofi Pasteur, submitted to the FDA a supplemental application for license of its influenza A(H1N1) 2009 monovalent vaccine, which is expected to expedite the licensing process.