Stocks in the News: Time Warner, Garmin, InterMune
Time Warner Inc. (TWX) reported Wednesday that its first-quarter profit rose 10% to $725 million, or 62 cents per share, helped by better advertising revenue and strong home video sales. Adjusted profit was 61 cents per share. Revenue climbed 5% to $6.32 billion. Analysts polled by Thomson Reuters forecast a profit of 48 cents per share on revenue of $6.25 billion. Shares advanced 2.8% in premarket trading.
PulteGroup Inc. (PHM) reported Wednesday it cut its first quarter loss significantly to $12.5 million, or 3 cents per share, as a result of fewer charges for inventory impairments. Revenue rose 75% to $1.02 billion from $583.9 million. While earnings exceeded analyst expectations of a loss of 22 cents per share, revenue still couldn't match expectations of $1.18 billion. Pulte says it now expects to turn a profit in 2010.
InterMune (ITMN) failed to win regulatory approval for its lung treatment Tuesday. The FDA wants more data and the biotech will have to perform another clinical trial for that. Shares were halted pending the announcement and only resumed in after-hours trading where they plummeted. ITMN shares sank 76%, or nearly $35, to $10.70 ahead of the bell.
Garmin (GRMN) reported Wednesday its first-quarter profit fell 24% to $37 million, or 19 cents a share, as revenue fell 1% to $431 million. On a pro forma basis, the company said it earned 38 cents a share, missing estimates for earnings of 42 cents a share. Shares dropped over 10% in premarket trades.
News Corp. (NWS) reported third-quarter earnings that surpassed forecasts, but the company said it expects a drop in fourth-quarter earnings due to lower revenue. Shares traded 1% lower in premarket action.
American International Group (AIG) shares declined 1.5% before the bell after Britain's Prudential (PUK) delayed the sale of $20 billion worth of stock, raising questions about whether it would have enough assets for the planned $35.5 billion acquisition of AIG's Asia unit AIA.