A number of companies that provide financial services in diverse areas, announced their quarterly earnings for the period ending on the 30th of June, today. Here is a short summary of how well each company performed:
General Electric Company (NYSE:GE), the largest US based conglomerate, reported second quarter earnings with a 16% loss in profits, with a net income of $3.11 billion, as compared to $3.69 billion for the year ago quarter. The EPS was $0.29 in this quarter, while GE reported $0.35 earnings per share in Q2 2011. The total revenue in this quarter rose slightly to $36.5 billion, which narrowly misses analyst estimates of $36.77 billion.
The loss in profits was due to losses in sold-out businesses and rising pension costs. In a statement, CEO, Jeff Immelt, said, “We are executing on our growth strategy in the midst of a still volatile global economy.”
American Electric Power Company, Inc. (NYSE:AEP) reported second quarter earnings with good news where profits rose, despite the fall in revenues. The earnings per share were 75 cents, as opposed to the expectations of 72 cents a share. Over the same quarter in 2011, AEP grossed EPS of 73 cents. The total revenues for this quarter amounted to $3.6 billion,which meets the analyst expectations of $3.57 billion. Over the same period last year AEP grossed $3.61 billion. Net income came upt0 $362 million, which as compared to $389 million for the last quarter for 2012. This marks the fourth straight quarter of rising income.
The CEO, Nicholas K. Akins of AEP, conveyed his satisfaction over the second quarter, and attributed their financial performance to warmer weather and cost cutting approach. He noted that AEP suffered severe damage caused by storms in eastern states.
Baker Hughes Incorporated (NYSE:BHI) reported the Apr-June quarter earnings, with a net income of $439 million. Diluted EPS was $1.00, which compares to $0.77 earned from the same quarter of 2011. Baker Hughes EPS for Q1 2012 was $0.86. Revenues rose 12% to $5.33 billion in this quarter, from $4.74 billion in the corresponding quarter of 2011. The revenues were down slightly from $5.36 billion in the first quarter of 2012.
The CEO of Baker Hughes, Martin Craighead, said, “”We achieved 2 percent sequential growth in operating income, despite challenging market conditions in North America. The impact on margins from the seasonal slowdown in Canada was mostly offset by improved results in onshore U.S. drilling “. The CEO attributed the major credit of its success for this qurater to the brilliant performance shown in its Europe and Mid-East initiatives.
First Horizon National Corporation (NYSE:FHN) reported second quarter earnings today. Total revenue for this quarter amounted to $331.58 million, this falls below the analyst estimates of $358.1 million. Revenue for this quarter fell 8%, as compared to the corresponding quarter of 2011. FHN reported profits for the last three quarters, the losses in this quarter amounted to $124.8 million, which equals a loss of 50 cents per share, the profits of $20 million or 8 cents per share were reported in Q2 2011.
Bryan Jordan, CEO of FHN, commented on the Q2 earnings, “Our company continues to generate solid results in our regional bank through First Tennessee, and our capital markets group through FTN Financial, and our employees continue to win new business, improve the way they serve our customers, and work more efficiently at every turn,” he added, “We are pleased with the progress our folks have made on our efforts to position us for the future, including technology investments and the continued wind-down of our non-strategic businesses.”
Schlumberger Limited (NYSE:SLB) released second quarter earnings with earnings per share of $1.05, which is a 8% increase over last year’s $0.86. The total income equaled $1.4 billion (excluding charges and credits), which is a 20% year-over-year increase. In Q2 2012, the total revenue came equal to $10.45 billion, which rises above $8.99 billion in sales in the second quarter of 2011, and $9.92 billion in the first quarter of 2012.
Schlumberger CEO, Paal Kibsgaard, commented over earnings, “Solid activity growth, and a consistent focus on execution led to results that continued to strengthen in the second quarter.”
SunTrust Banks, Inc. (NYSE:STI) reported earnings of second quarter by exceeding analyst expectations. Earnings of $0.50 per share were reported, as opposed to analyst estimates of $0.44, which is up from $0.33 in the year ago quarter. The net income amounted to $275 million, which is also a significant improvement from $178 million reported in second quarter of 2011. The revenue (excluding securities cost) was $2.23 billion which is slightly above analyst expectations of $2.17 billion.
Xerox Corporation (NYSE:XRX) reported quarterly earnings that were in line with analyst expectations. Net income equaled $316 million, which is down from $327 million a year earlier. The adjusted EPS for this quarter was $0.26. Revenue totaled $5.5billion which is a 1.3% decline from the corresponding quarter of 2011 and nearly meets analyst expectations of $5.59 billion.
Ursula Burns, CEO of Xerox Corp, said in a statement,“With more than half our total revenue coming from services, accelerating growth in this segment of our business is a priority. Our second-quarter results reflect solid progress, with 8 percent growth from business process outsourcing, 9 percent growth from IT outsourcing, and 6 percent growth in document outsourcing, all at constant currency.”