AIG and These 2 Stocks See Rising Trader Activity Post Earnings

American International Group Inc (NYSE:AIG) reported net income above Wall Street’s expectations for the fourth quarter. Net income for American International Group Inc rose to $19.8 billion ($10.43 per share) vs. $11.05 billion ($16.48 per share) in the same quarter a year earlier. This marks a rise of 79.1% from the year-earlier quarter. American International Group Inc reported adjusted net income of 82 cents per share. By that measure, the company beat the mean estimate of 61 cents per share.

“Fourth quarter and full year profitability reflects the tremendous commitment and focus on business fundamentals by everyone at AIG,” said Robert H. Benmosche, AIG President and Chief Executive Officer. “The quality of our earnings, against the backdrop of record natural catastrophes, enables this great company to again stand proud as a market leader. I am also extremely proud that when natural catastrophes strike, we stand with our customers and provide them with the peace of mind that we’re there for them.”

Competitors to Watch: Orbitz Worldwide, Inc. (NYSE:OWW), Expedia, Inc. (NASDAQ:EXPE), and Travelzoo Inc. (NASDAQ:TZOO).

Pepco Holdings Inc. (NYSE:POM) posted a decrease in profit as revenue declined. Net income for the electric utilities company fell to $19 million (8 cents per share) vs. $33 million (14 cents per share) a year earlier. This is a decline of 42.4% from the year-earlier quarter. Revenue fell 18.7% to $1.23 billion from the year-earlier quarter. Pepco Holdings Inc. reported adjusted net income of 15 cents per share. By that measure, the company fell short of mean estimate of 18 cents per share. It fell short of the average revenue estimate of $1.75 billion.

“2011 was a year of significant progress on our key initiatives,” said Joseph M. Rigby, Chairman, President and Chief Executive Officer. “While recognizing there is still more work to be done, we are pleased that our investments to improve system reliability and the customer experience are beginning to produce tangible results. Earnings were impacted by our increased spending on system maintenance and tree trimming, which are positively impacting our operating statistics and improving our restoration performance, as demonstrated during Hurricane Irene.” Rigby added, “Throughout the year, we invested nearly $900 million in transmission and distribution infrastructure including projects focused on improving reliability and installing advanced technology. This technology includes smart meters that will provide detailed account-specific energy use information to our customers and advanced control systems that will expedite power restoration after outages. Investments such as these are important components of our strategy to provide enhanced value to our customers and investors.”

Competitors to Watch: Public Service Enterprise Group Inc. (NYSE:PEG), NextEra Energy, Inc. (NYSE:NEE), FirstEnergy Corp. (NYSE:FE), Northeast Utilities System (NYSE:NU), Constellation Energy Group, Inc. (NYSE:CEG), DPL Inc. (NYSE:DPL), The Southern Company (NYSE:SO), Consolidated Edison, Inc. (NYSE:ED), Exelon Corporation (NYSE:EXC), and Duke Energy Corporation (NYSE:DUK).

Pinnacle West Capital Corporation (NYSE:PNW) reported net income above Wall Street’s expectations for the fourth quarter. Net income for Pinnacle West Capital Corporation rose to $12.1 million (11 cents per share) vs. $5.2 million (7 cents per share) in the same quarter a year earlier. This is a more than twofold rise from the year-earlier quarter. Revenue fell 2.3% to $667.9 million from the year-earlier quarter. Pinnacle West Capital Corporation beat the mean analyst estimate of 5 cents per share. Analysts were expecting revenue of $667.2 million.

“Disciplined cost management, concentration on our core electricity business and superior operational performance by our dedicated employees – particularly in the areas of customer service, reliability and safety – produced sound financial results,” said Pinnacle West Chairman, President and Chief Executive Officer Don Brandt. Brandt added that the Company’s 2011 results exceeded its earnings guidance. The Company had projected that on-going earnings would be near the top of its guidance range of $2.75 to $2.90 per share. The actual results were due, in part, to lower than expected operating and maintenance costs, and cooler than normal weather that increased retail sales in the fourth quarter by a similar amount as the year-ago period.

Competitors to Watch: UniSource Energy Corp. (NYSE:UNS), IDACORP, Inc. (NYSE:IDA), PNM Resources, Inc. (NYSE:PNM), NV Energy, Inc. (NYSE:NVE), Edison International (NYSE:EIX), The Southern Company (NYSE:SO), Cleco Corporation (NYSE:CNL), Hawaiian Electric Industries, Inc. (NYSE:HE), Portland General Electric Co. (NYSE:POR), and Northeast Utilities System (NYSE:NU).

To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com