Equity Review: International Business Machines, American Eagle Outfitters, Forest Laboratories, Huntington Bancshares and Netflix
International Business Machines Corp. (NYSE:IBM) shares ended higher by 2.33% to US$207.45 on over 6.06 million shares, compared to its average volume of 3.93 million shares. Late Tuesday, the company reported a better-than-estimated first quarter earnings and lifted its full year earnings target. The company earned US$2.78 a share on revenue of US$24.70 billion, compared to analysts’ estimates of US$2.65 a share on revenue of US$24.78 billion. Net earnings rose 7% to US$3.1 billion in the first three months of the year. The company raised its full year target to at least US$15 adjusted earnings per share on strong demand for its software services and growth in emerging markets. Its previous target was for at least US$14.85. IBM competes with business software makers Oracle Corp and SAP AG as well as outsourcing company Accenture and computing giant Hewlett Packard. The stock has been moving within a range of US$157.13 - US$210.69 over the past 52-week.
American Eagle Outfitters (NYSE:AEO) was up 0.87% to US$17.37 on over 6.27 million shares, compared to its average volume of 5.56 million shares. Early March, the company said the spring quarter started on a strong note and its margins will benefit from lower markdowns and costs as the year progresses. For the fourth quarter, ended January 28, earnings fell to US$51.3 million, or 26 cents a share, from US$87 million, or 44 cents a share, a year earlier. American Eagle earned 35 cents a share after adjusting for store impairment and other costs. Sales grew 14% to US$1.04 billion. For the first quarter ending in April, American Eagle said it expects to earn 8 cents to 10 cents a share. Analysts on average expect 10 cents. The stock has been moving within a range of US$10.00 - US$17.92 over the past 52-week.
Forest Laboratories, Inc. (NYSE:FRX) climbed 3.95% to US$34.97 on over 5.01 million shares, compared to its average volume of 1.95 million shares. The company quarterly profit plunged 40 percent as the company lost patent protection for its blockbuster Lexapro antidepressant. Net income for the fiscal fourth quarter fell to US$192.7 million, or 72 cents per share, from US$322.5 million, or US$1.12 per share, a year earlier. Revenue slid 7% to US$1.06 billion. Lexapro sales tumbled 40 percent to US$355.8 million. Sales of Alzheimer's treatment Namenda, rose nearly 20 percent to US$393.1 million, and Forest's newer drugs. Forest projected earnings for its 2013 fiscal year ending in March 2013 in a range of 90 cents to US$1.05 per share. Analysts have been looking for US$1.08. , sales of antidepressant Viibryd tallied sales of US$24.9 million and Daliresp, for chronic obstructive pulmonary disease, had sales of US$13.1 million. Both drugs were launched in August, 2011.
Huntington Bancshares Incorporated (NASDAQ:HBAN) climbed 0.32% to US$6.35 on over 11.09 million shares, compared to its average volume of 12.02million shares. The company is scheduled to report its quarterly earnings on April 18, 2012. Analysts are estimating the company to report a profit of US$0.14 a share, compared to a year ago income of US$0.14 a share. Revenue is expected to grow by 1.80% to US$656.78 million, from US$645.20 million a year ago. Recently, the bank acquired Dearborn, Mich.-based Fidelity bank through a purchase and assumption agreement with the Federal Deposit Insurance Corporation, which was appointed as receiver for Fidelity, according to a press release. Columbus-based Huntington assumed all of Fidelity’s US$747.6 million in deposits and agreed to purchase nearly all of its US$818.2 million in assets. Huntington did not disclose the cost of the transaction. The stock has been moving within a range of US$11.09 - US$12.02 over the past 52-week.
Netflix, Inc. (NASDAQ:NFLX) shares soared 5.80% to US$107.02 on Tuesday with more than 4.44 million shares traded hands, compared to its average volume of 5.01 million shares. Last week, Pacific Crest Securities on Thursday released the results of its survey of 1,205 U.S. consumers conducted at the end of March. The survey was designed to gauge consumer interest in technology products and services. About 14% of respondents said they owned an Amazon Kindle Fire tablet. And Amazon's gamble to sell a low-cost tablet (US$199) to spur sales of digital and physical products appears to be paying off, Pacific Crest said. According to the survey, 43% of Kindle Fire owners reported spending more on digital media, and 33% reported spending more on physical goods with Amazon. The company is scheduled to report its earnings after the U.S. financial markets close on April 23, 2012. Analysts are estimating the company to report a loss of US$0.27 a share, compared to a year ago income of US$1.11 a share. Revenue is expected to grow by 21% to US$869.47 million, from US$718.55 million a year ago. So far this year, the stock has jumped about 51% and down 55.50% over the past one year.