Stocks in the News: AIG, Tata Motors, The Gap
American International Group (AIG) lost $8.9 billion, or $65.51 per share. On an adjusted basis, it lost $7.2 billion, or $53.23 a share, vs. $38.5 billion, or $287.69 a share, in the same quarter last year on revenue of $24.4 billion. AIG also said it has been in discussion with a third party regarding the potential sale of its Alico unit. Shares skidded over 9% in premarket trading following the results.
Ford Motor Co. (F) announced Friday that it is investing $155 million and adding 60 jobs at an engine plant in suburban Cleveland to build a fuel-efficient V-6 engine for the 2011 Mustang.
Lloyds Banking Group (LYG) posted a wider-than-expected, full-year loss as loan write-offs rose "significantly" in 2009 on the bank's takeover of HBOS Plc, Bloomberg reports.
Tata Motors (TTM) shares jumped over 5% ahead of the bell after it reported a rise in sales and margins at its luxury brands Jaguar and Land Rover.
Sandisk (SNDK) is hosting an investor meeting Friday and will provide analysts with fresh details on its outlook and plans.
VMware (VMW) is buying software products and expertise from EMC's (EMC) Ionix IT management business in a deal valued at $200 million.
Earnings from late Thursday:
- The Gap (GPS) reported a 45% increase in its fourth-quarter profit, citing better inventory management, fewer discounts and stronger sales at Old Navy. Results beat Street view. It also expects earnings to climb in 2010 and said it would repurchase $1 billion of stock. Shares rose 4% ahead of the bell.
- Crocs (CROX) reported a narrower fourth-quarter loss, also topping estimates, and surprisingly announced the sudden departure of its CEO, sending shares over 13% in premarket trading.
- Weight Watchers International (WTW) reported better-than-expected earnings, but lower-than-expected outlook. Shares sank nearly 9% ahead of the bell.
- Novell (NOVL) reported disappointing top and bottom lines.
- Rosetta Stone (RST) gained 3.5% to $17.95 in extended trading on Thursday following fourth-quarter results. Shares soared over 15% in premarket.
- Wynn Resorts (WYNN) reported lower earnings than Wall Street expected, but higher revenues.
- Fluor (FLR) beat estimates but cut its earnings outlook.