Citigroup and Royal Caribbean Shares Drag, Despite Strength in U.S. Financial Market Today
Even though Citigroup (NYSE:C) disappointed its shareholders with their latest earnings release today, the markets are holding strength in other major banking stocks. Also, energy, precious metals and tech continue to display leadership. Analysts at major brokerage firms released their latest insights into these companies today:
Citigroup Inc. (NYSE:C): Fourth quarter net income of $1.17 billion at Citigroup offset by release of loan loss reserves of $1.47 billion. Suffering a $0.05 per share loss without the release, year-over-year revenues were down 53 percent. Citigroup Inc. shares are down 6.1 percent.
Royal Caribbean Cruises Ltd. (NYSE:RCL): Royal Caribbean trades lower reacting to the fatal incident experienced by its competitor, Carnival (NYSE:CCL). Almost a third of cruise vacations are booked during what is call the “wave season”. The accident off the coast of Italy may have been human error prompting investors to reexamine other cruise lines. Royal Caribbean Cruises Ltd. shares are down 3.8 percent.
Provident Energy Ltd (NYSE:PVX): Provident Energy and Pembina Pipeline Corporation agree to create an integrated company under the Business Corporations Act (Alberta). Under the plan, Pembina will acquire all issued and outstanding common shares of Provident. When completed, Pembina plans a 3.8 percent monthly dividend increase from 13 cents to 13.5 cents per share, or from $1.56 to $1.62 annualized. Management is confident the newly integrated company will embody operational and financial strength as an infrastructure leader in North American energy. Provident Energy Ltd is up 21.8 percent.
Venoco, Inc. (NYSE:VQ): Venoco going private. An entity controlled by Chief executive officer Timothy Marquez, and consisting of affiliated trusts and foundations, has made an offer of $12.50 per share to privatize the company. Venoco, Inc. is up 40.31 percent.
Kinross Gold Corporation (NYSE:KGC): Estimating only a slight rise in production with increased costs sent Kinross Gold lower. The company’s 2011 production of 2.6 million ounces was forecast at 2.6 million to 2.8 million for 2012. Further, production costs are expected to increase from around $600 an ounce to $670 to $715 an ounce. Kinross predicted capital expenditures of $2.5 billion. Kinross Gold Corporation shares are down 16.3 percent.
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