Time Warner Cable to buy back more stock, shares up
(Reuters) – Time Warner Cable Inc (TWC.N) raised its quarterly dividend and surprised Wall Street by announcing plans to buy back $4 billion of its stock, sending shares up more than 8 percent on Thursday.
The No. 2 U.S. cable provider also posted a higher quarterly profit as it added more customers than expected for its broadband services and stemmed the decline in its video business.
The company raised its quarterly dividend by 17 percent to 56 cents a share, which means its shares now carry a 3.2 percent dividend yield based on Wednesday’s closing price.
While Collins Stewart analyst Thomas Eagan said he was expecting a dividend increase, he was surprised the company increased its share buyback so soon. He said he did not expect such a move until the third quarter of 2012 and that it signals a strong outlook for future cash generation.
“It is notable and speaks to their confidence to their cash flow growth,” he said.
The high end of the company’s forecast range for 2012 earnings per share was slightly above Wall Street estimates. It now expects earnings per share in the range of $5.25 to $5.50, compared with the average estimate of $5.48, according to Thomson Reuters I/B/E/S.
Time Warner Cable, which competes with Comcast Corp (CMCSA.O) and Cablevision Systems Corp (CVC.N), said fourth-quarter profit rose to $564 million, or $1.75 a share, from $392 million or $1.09 a share a year earlier.
Its revenue rose 4 percent to $5 billion, topping analysts’ average estimate of $4.97 billion, according to Thomson Reuters I/B/E/S.
It added 117,000 broadband Internet residential customers, beating analysts’ estimates for 87,000.
The company lost 129,000 video residential subscribers, compared with analysts’ expectations for a loss of 130,000, according to StreetAccount data. Bernstein Research analyst Craig Moffett wrote in a research note that “video subscribers continue to trend better.”
Time Warner Cable and its peers have been losing video customers to phone and satellite providers and Internet companies such as Netflix Inc (NFLX.O) and Hulu. On Wednesday, Netflix surprised Wall Street by adding 610,000 net new subscribers in the United States in the latest quarter.
ATT
Article source: Read more
Carnival sued by crew member over cruise ship disaster
(Reuters) – Carnival Corp, whose luxury cruise liner Costa Concordia capsized off the coast of Italy, was sued by a crew member in a first of what may be multiple U.S. lawsuits seeking class-action status over the disaster, court documents show.
Lawyers for Gary Lobaton, who was a crew member on board the Costa Concordia, said in a court filing that he was not aware of the “dangerous conditions” of the cruise ship until it was too late to abandon the ship.
The lawsuit sought to determine whether Carnival deviated from international safety standards when operating the cruise ship.
“Costa Concordia’s Captain, Francesco Schettino, delayed the order to abandon ship and deploy the lifeboats,” Lobaton’s lawyers said in the filing.
Lobaton, who sued Carnival individually and on behalf of all others similarly affected by the cruise disaster, had sought damages from the company, according to the court filing.
Lobaton had also requested the court to assign class-action status to the lawsuit.
The 114,500-tonne ship capsized off the Tuscan coast, which left 11 people dead and 22 missing.
According to a January 24 BBC report, the number of dead has risen to 16.
Carnival could not immediately be reached for comment by Reuters outside regular U.S. business hours.
The case is Gary Lobaton vs Carnival Corp, Case No. 1:12-cv-00598, U.S. District Court, Northern District of Illinois, Eastern Division.
(Reporting by Sakthi Prasad; Editing by Muralikumar Anantharaman)
Article source: Read more
3M profit tops Wall Street estimates
(Reuters) – 3M Co (MMM.N) reported higher-than-expected quarterly earnings on Thursday as demand from industrial and transport markets offset weak sales to makers of consumer electronics.
The maker of Post-It notes, Scotch tape and components for consumer electronics reported net earnings of $954 million, or $1.35 per share, compared with $928 million, or $1.28 per share, a year earlier.
Analysts on average were expecting a profit of $1.31 a share, according to Thomson Reuters I/B/E/S.
Sales rose 6 percent to $7.1 billion, matching Wall Street estimates. 3M’s industrial and transportation segment sales jumped 14 percent, reflecting healthy auto, aerospace and energy markets, among others, as well as acquisitions. Sales at 3M segments that make office supplies and health and safety also rose.
Revenue fell, however, in the display and graphics segment, hurt by what 3M called “deteriorating” demand for consumer electronics. Its electro and communications also posted lower sales.
St. Paul, Minnesota-based 3M affirmed its forecast of 2012 earnings between $6.25 and $6.50 per share, saying it would focus on its bottom line in the near-term in a slower growth environment .
3M has said acquisitions would boost this year’s results. This month, it moved to expand its office supply business with the $550 million cash purchase of Avery Dennison Corp’s (AVY.N) office and consumer products unit, which includes Avery labels and HI-LITERS markers.
(Reporting By Nick Zieminski in New York; Editing by Lisa Von Ahn and Derek Caney)
Article source: Read more
Fitch Revises Outlook on State of Washington to Negative; Rates $1.5B GOs ‘AA+’
NEW YORK–()–Fitch Ratings assigns an ‘AA+’ rating to the following State of
Washington general obligation (GO) bonds:
–$346,075,000 various purpose GO bonds, series 2012D;
–$188,595,000 motor vehicle fuel tax GO bonds, series 2012E;
–$699,075,000 various purpose GO refunding bonds, series R-2012C;
–$260,140,000 motor vehicle fuel tax GO refunding bonds, series R-2012D.
The bonds are expected to be sold through competitive bid, the refunding
bonds on Jan. 31, 2012 and the new money bonds on Feb. 28, 2012.
Fitch also affirms the ‘AA+’ rating assigned to approximately $17.5
billion of outstanding state GO bonds. Fitch has also revised the Rating
Outlook on the state’s GO bonds to Negative from Stable.
KEY RATING DRIVERS
OUTLOOK REVISED TO NEGATIVE: The revision of the Rating Outlook to
Negative from Stable reflects the challenges faced by the state in
addressing a sizable budget gap that developed after the adoption of the
current biennial budget. The state is operating in an environment of
significantly constrained revenue raising and spending control
flexibility. Maintenance of the ‘AA+’ rating will be contingent upon
enactment of sustainable budgeting measures that provide an adequate
cushion against future revenue underperformance.
SOLID ECONOMY: Washington’s economy is characterized by generally sound
performance and increased diversification. The manufacturing sector
remains concentrated in the cyclical aerospace industry, although this
concentration is sharply reduced. Economic growth prior to the downturn
was primarily due to strength in construction, aerospace (Boeing), and
technology (Microsoft).
Article source: Read more
AHF Blasts Gilead for ‘Squeezing Every Last Cent Out of Truvada’ in AIDS Postcards & Newspaper Sticky Notes Ads
LOS ANGELES–()–Earlier this week, AIDS
Healthcare Foundation (AHF) launched an awareness campaign to
educate employees and neighbors of Gilead
Sciences, Inc. about Gilead’s seeming rush to seek FDA
approval of its blockbuster AIDS treatment Truvada as a form a
‘pre-exposure prophylaxis’ (PrEP) to prevent HIV transmission in
uninfected individuals. The campaign, called, ‘Gilead: Squeezing
Every Last Cent Out of Truvada!’ includes advocacy
post cards printed with that message and sent to 48,000 homes in the
Bay area as well as appearing as newspaper
sticky note ads attached to the San Jose Mercury News and
which are being distributed on editions of the paper from January 24th
through January 29th.
“Gilead, Squeezing Every
Last Cent Out of Truvada!”
On December 15, 2011, Gilead issued a press release stating it had
formally filed an application with the Food
and Drug Administration (FDA) for such expanded use of the Truvada.
The application was based in part on clinical trials that were widely
reported last summer and which showed — at best — marginal efficacy for
the drug when used as a prevention pill — one study of gay men showed a
very modest 44% rate of success in preventing transmission of the virus.
Truvada, a drug compound that consists of Gilead’s drugs Viread
(tenofovir DF) and Emtriva (emtricitabine), is currently FDA-approved
for use as part of antiretroviral therapy combinations for individuals
already living with HIV or AIDS. FDA approval for pre-exposure use as a
form of HIV prevention for those NOT infected with the
Article source: Read more
Recent Comments