2 Dow Jones Industrial Stocks Going in Different Directions After Earnings
United Technologies Corporation (NYSE:UTX) reported its results for the third quarter. Net income for the conglomerate rose to $1.32 billion ($1.47 per share) vs. $1.2 billion ($1.30 per share) in the same quarter a year earlier. This marks a rise of 10.5% from the year earlier quarter. Revenue rose 8.7% to $14.8 billion from the year earlier quarter. UTX beat the mean analyst estimate of $1.44 per share. Analysts were expecting revenue of $14.55 billion.
“This was another solid quarter for UTC, with continued organic sales growth across all six of our businesses,” said Louis Chenevert, UTC Chairman & Chief Executive Officer. “Cash generation was also strong and we now expect cash flow from operations less capital expenditures to exceed net income attributable to common shareowners for the full year.
Competitors to Watch: Honeywell Intl. Inc. (NYSE:HON), General Electric Company (NYSE:GE), The Boeing Company (NYSE:BA), Goodrich Corporation (NYSE:GR), Northrop Grumman Corp. (NYSE:NOC), Triumph Group, Inc. (NYSE:TGI), Esterline Tech. Corp. (NYSE:ESL), Textron Inc. (NYSE:TXT), Rolls-Royce Group plc (RYCEY), and Zardoya Otis SA (ZOT).
The Travelers Companies Inc. (AMEX:TRV) reported its results for the third quarter. Net income for the property and casualty insurance company fell to $333 million (79 cents per share) vs. $1 billion ($2.11 per share) a year earlier. This is a decline of 66.9% from the year earlier quarter. Revenue fell 1.2% to $6.41 billion from the year earlier quarter. TRV fell short of the mean analyst estimate of 96 cents per share. It beat the average revenue estimate of $5.58 billion.
“With third quarter earnings being meaningfully impacted by a number of significant catastrophes, including Hurricane Irene and Tropical Storm Lee, the strength of our business enabled us to generate net income of $333 million and to grow book value per share to $60.98, up 4% from year-end 2010,” commented Jay Fishman, Chairman and Chief Executive Officer. “We extend our sympathies to those affected by these events, and I would like to express my appreciation to our claim organization for the speed, dedication and professionalism with which they respond to our customers and agents.”
Competitors to Watch: American Financial Group (NYSE:AFG), White Mountains Insurance Group, Ltd. (NYSE:WTM), RLI Corp. (NYSE:RLI), The Chubb Corporation (NYSE:CB), W.R. Berkley Corporation (NYSE:WRB), CNA Financial Corporation (NYSE:CNA), XL Group plc (NYSE:XL), HCC Insurance Hldgs., Inc. (NYSE:HCC), and Markel Corporation (NYSE:MKL).