Ford’s Huge Quarter, US Airways Posts Record Profit, and 3 More Hot Stocks
Ford Motor Co. (NYSE:F): EPS of $0.45 beat estimates by $0.08, and revenue also beat projections at $38.1 billion, over by $2.95 billion. Net income swelled by $193 million to $1.2 billion, with pretax profit up $726 million to $2.6 billion. Revenues also grew 15 percent. North American pretax profits hit a record of $2.33 billion, against the $2.01 billion from last year. European losses narrowed to $348 million, down from $404 million. Asia Pacific operations came back into black, for a profit of $177 million from losses of $66 million, as Ford’s Chinese market share gained 1.5 percentage points.
U.S. Airways Group (NYSE:LCC): Second quarter EPS of $1.58 beat expectations by $0.07, and revenue of $3.87 billion passed projections by $0.03 billion. Without the inclusion of special items, pretax profit of $409 million was enough to make the highest in company history. A 2.8 percent decrease in passenger yield was at least partially offset by record quarterly load factor of 85.1 percent, and operating expenses of $3.4 billion saw a 1 percent rise.
Total S.A. (NYSE:TOT): Total is close to being awarded a contract in Sri Lanka, to study the prospect of oil and natural gas deposits off of the region’s coast. Sri Lanka’s Mannar basin is estimated to hold 1 billion barrels of oil, equal to about 18 percent of India’s oil reserves. Other companies, including Eni (NYSE:E), have expressed interest in studying the deposits, and talks are also underway with Exxon (NYSE:XOM) and India’s ONGC.
Sarepta Therapeutics, Inc. (NASDAQ:SRPT): Shares of Sarepta are tanking after CEO Chris Garabedian takes questions about dystrophin expression as a predictor of clinical outcomes on a conference call for the discussion of an NDA filing for eteplirsen. The FDA ”requested additional information related to the methodology and verification of dystrophin quantification,” and “would not commit to declaring dystrophin an acceptable surrogate endpoint.” A round of downgrades have pushed shares down over 13 percent.
Barrick Gold Corp. (NYSE:ABX): The sale of its energy business earlier this week is being hailed as a smart move by observers, despite an expected $500 million that will be lost on the deal. The sale enhances liquidity, eases debt pressure, and re-focuses the asset base back to gold, Seeking Alpha reports. The loss on the deal would rub salt into the wounds already expected in the second quarter (with no thanks to the Pascua Lama project), but would be better for the firm’s long-term health.
Don’t Miss: Ford and Toyota Break up over Hybrids.