Earnings Roundup: Zillow, Humana, Time Warner and HSBC – ValueWalk Premium

Earnings Roundup: Zillow, Humana, Time Warner and HSBC

The new market week kicked off with quarterly earnings reports by Time Warner Cable Inc (NYSE:TWC), HSBC Holdings plc (NYSE:HSBC), Humana Inc. (NYSE:HUM), and Zillow Inc (NASDAQ:Z).

Earnings Roundup: Zillow, Humana, Time Warner and HSBC

Time Warner Cable Inc (NYSE:TWC)

Time Warner Cable Inc (NYSE:TWC) reported its third quarter earnings, and it brought some disappointing news.

In the quarter, the company lost 140,000 residential video subscribers; this exceeded the 128,000 forecast by analysts. It also added less Internet and voice customers than analysts had forecast–a sign that the company is struggling to market its service bundles to customers, reported Bloomberg.

Financial numbers for the quarter included a net income rise to $808 million ($2.60 a share), up from $356 million ($1.08 a share) in the previous year. Excluding one-time items, earnings per share were $1.41; this missed analysts' estimates of $1.43.

The market reacted to the news with Time Warner's stock falling 6.9 percent to $91.40 by mid-morning; it represented its largest intraday drop since October 2011.

The shares were the greatest decliner in the Standard & Poor’s 500 Index on Monday, closing down 6.36% to $91.93.

HSBC Holdings plc (NYSE:HSBC)

HSBC Holdings plc (NYSE:HBC) (LON:HSBA) reported its third quarter net profit dropped to $2.8 billion, as compared to the previous year's $5.5 billion. The company also said it incurred a $1.7 billion quarterly charge on the value of its own debt, reported the New York Times.

Without the adjustments, the bank announced that its third quarter pretax profit more than doubled, to $5 billion. This number came in lower than analysts’ estimates.

The bank also said on Monday that it put aside $1.1 billion combined for the ongoing money-laundering investigation and a settlement for the sale of inappropriate financial products; the bank added it could see criminal charges in the United States.

HSBC Holdings plc (NYSE:HBC) (LON:HSBA)’s chief executive, Stuart T. Gulliver said in a conference call, “We deeply regret what took place took place in the United States and Mexico. A number of people have left the bank and have had clawbacks against their compensation.”

Humana Inc. (NYSE:HUM)

Humana Inc. (NYSE:HUM) was chock-full of news with its quarterly earnings report.

For the third quarter, Humana said its net income was $426 million ($2.62 per share), dropping from $445 million ($2.67 per share) from the previous year. Analysts had estimated earnings at $2.05 per share.

Revenue increased to $9.65 billion, up from the previous year's $9.3 billion. This was lower than the estimated $9.88 billion.

Humana raised its earnings outlook to $7.25 to $7.35 per share, up from the previous $6.90 to $7.10 per share estimates. Analysts had forecast earnings at $7.12 per share for 2012.

The company also announced a deal that will firm up its Medicare Advantage business, notably in Florida, and that it is grooming Bruce D. Broussard, its president, to take over as CEO.

Zillow Inc (NASDAQ:Z)

Zillow Inc (NASDAQ:Z) just announced its third quarter earning after the bell.

The company reported revenue of $31.9 million, a 67% rise from the previous year; it exceeded analysts' estimates of $31.7 million.

But for the fourth quarter, the company forecasts revenue at $30 million to $31.5 million, slightly lower than $32.5 million forecasts.

For 2012, Zillow Inc (NASDAQ:Z) expects $113 million in revenues, lower than the $114.8 million consensus.

The company also announced it will acquire the mortgage technology company, Mortech, which “provides essential software tools to the mortgage industry.” The deal is $12 million in cash and 150,000 shares of restricted stock.

A fourth quarter close is expected. The stock has dropped 22% in aftermarket trading on the news.


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