Wall Street Watch: Toyota Resurrected, AOL Earnings & More
On Wednesday, Toyota Motor Corp. (NYSE:TM) reported that its net profit increased almost five times in the January to March quarter thanks to production returning to normal capacity after disruptions from last year’s earthquake. As Japan’s biggest car maker, defined by volume, the company saw a net profit of YEN 121.0 billion in the three months, rising from YEN 25.4 billion from the previous year due to solid U.S. and Japan sales. The numbers beat analysts’ estimate for YEN 112.9 billion in net profit.
GlaxoSmithKline (NYSE:GSK) will present a $13 per share offer this week to Human Genome Sciences (NASDAQ:HGSI) after the latter previously declined the U.K. company’s proposal. The $2.6 billion offer is believed to be “full and fair” according to Glaxo and it thinks that Human Genome has had plenty of time to review the alternatives. But Glaxo is prepared to again go over its proposal.
AOL, Inc. (NYSE:AOL) reported a first quarter profit of $21.1 million ($0.22 cents per share) as compared to the previous year’s profit of $4.7 million ($0.04 cents per share). Revenue fell four percent to $529.4 million as analysts had estimated earnings of $0.07 cents per share from revenues of $526 million. Advertising revenue, which is the biggest top-line contributor, rose 5.2 percent to $330.1 million with a double-digit rise in third party network revenue.
A Closer Look: AOL Earnings Cheat Sheet>>
The bad news continues for Green Mountain (NASDAQ:GMCR) as its founder and Chairman Robert Stiller and director William Davis have been forced to resign from the company’s board. This occurred from margin calls that required the two to sell millions of shares in the company on Tuesday. The departures come after Green Mountain’s stock price decline last week thanks to a gloomy outlook in its fiscal quarter two report.
On Tuesday, Facebook Inc.’s roadshow hit Boston on Tuesday sans a main presentation with Chief Executive Mark Zuckerberg but more time for attendees’ questions than Monday’s New York session. Afterwards, some investors were motivated to invest while others were upset that Zuckerberg hadn’t shown up. It doesn’t mean that he wasn’t part of the circus; he instead went to private meetings with Boston asset managers such as Fidelity Investments, Wellington Management and BlackRock Inc. (NYSE:BLK), reported The Wall Street Journal.