BP Sees Profit Fall, UBS Beats Estimates, and 3 More Hot Stocks
BP (NYSE:BP): BP’s underlying replacement profit fell 26 percent to to $3.7 billion from $5 billion a year ago, although it beat predictions calling for $3.4 billion. The company also hiked its dividend by 5.6 percent to 9.5 cents a share, adding that it intends to sell another $10 billion in assets within two years and return the money to shareholders. Production reached 3.17 million barrels of oil equivalent per day; out of BP’s $20 billion oil spill compensation fund, $19.3 billion has been paid out or assigned.
UBS AG (NYSE:UBS): UBS was able to swing back to profit in the third quarter at 577 million Swiss francs ($644.2 million) in the green, up from a loss of 2.13 billion francs last year. The consensus called for 537 million francs. Revenues dropped 0.5 percent to 6.26 billion francs, largely a result of lower investment banking revenue. UBS is anticipating it will reach its 13 percent Basel III capital ratio target at the end of 2014, and if the bank is successful, it plans to have a payout ratio of 50 percent.
Deutsche Bank AG (NYSE:DB): A 1.2 billion euro charge caused Deutsche Bank’s profit to tumble 94 percent, to 41 million euros ($56 million), sharply off the consensus of 430 million euros. Pretax profit dropped 98 percent to 18 million euros against forecasts calling for 642 million euros; a 1.2 billion euro increase in litigation provisions (now at 4.1 billion euros) also put a dent in the bank’s earnings.
JetBlue Airways Corp. (NASDAQ:JBLU): JetBlue reported earnings per share of 21 cents, off estimates by 1 cent, as revenue of $1.44 billion fell in line with expectations. Revenue passenger miles rose 5.4 percent in the third quarter, hitting 9.56 billion, as the carrier saw capacity gains of 5.1 percent during the period. Passenger Revenue per Available Seat Mile (PRASM) rose 5.4 percent to 11.75 cents; JetBlue noted that it hedged 29 percent of its fuel costs during the quarter.
Herbalife Ltd. (NYSE:HLF): Shares are up nearly 2.5 percent in early Tuesday trading in the wake of Herbalife’s quarterly report from Monday evening. EPS of $1.41 was enough to beat by 26 cents, while $1.22 billion in revenues beat by $0.02 billion. Volume growth for the quarter gained 13 percent as operating income surged 19 percent from the third quarter of 2012, though it stayed flat over the second quarter. For fiscal year 2013, Herbalife sees net sales growth of 17 percent-17.5 percent versus previous guidance of 16 percent-18 percent and adjusted EPS of $5.19-$5.23 versus previous guidance of $4.83-$4.95.