Will Earnings Propel These 3 Companies Higher?

On the day before the 1 year anniversary of the flash crash, the Dow (NYSE:DIA) fell 139 points, and the  S&P 500 (NYSE:SPY) fell 12 points.  Even bigger moves were seen in commodities, which appear to be in a free fall.  Oil (NYSE:USO) slipped $10, gold (NYSE:GLD) is under $1500, and silver (NYSE:SLV) fell more than 10%.  Although the day was filled with violent moves, these companies reported earnings.

These 3 companies reported earnings on Thursday:

1) Visa (NYSE:V): The well-known credit card company released fiscal Q2 earnings after the closing bell on Thursday.  EPS of $1.23 beat estimates by 3 cents,  while revenue of $2.2 billion was inline with estimates.  The growth in earnings was attributed to double digit growth in service revenues and international transaction revenues.  In short, the world continues to move from cash to plastic as the preferred payment method.  The company also approved a $1 billion share buyback plan.  Rivals include: Mastercard (NYSE:MA), American Express (NYSE:AXP), and Discover (NYSE:DFS).

2) Kraft (NYSE:KFT): Shares are up more than 1% in late trading after the food and snack company reported Q1 earnings.  EPS of 52 cents beat estimates by 5 cents.  The company earned $799 million, compared to $1.89 billion from last year.  The decrease in earnings was due to the its acquisition of Cadbury.  CEO Irene Rosenfeld said, “We’re off to a stronger than anticipated start to the year as our teams around the world execute our growth strategy.”  Shares are up 1.11% in late trading.  Other major food and snack plays include: Hershey (NYSE:HSY), Pepsi Co (NYSE:PEP), Coca-Cola (NYSE:KO), and General Mills (NYSE:GIS).

3) American International Group (NYSE:AIG): One of the largest bailout recipients reported Q1 earnings late Thursday night.  EPS of -35 cents missed estimates by 15 cents.  In addition to paying back its Federal Reserve credit line, the insurance company also took a hit on the earthquakes in Japan and New Zealand.  Shares fell 2.69% in regular trading on Thursday, and another 1.66% after the earnings release.  The company provides insurance and related services (including the now famous credit default swaps) in the US and across the globe.  Other financial investment options include: Goldman Sachs (NYSE:GS), JP Morgan (NYSE:JPM), Morgan Stanley (NYSE:MS), and Bank of America (NYSE:BAC).

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