(By Mayur Pahilajani - iStockAnalyst Writer)
New York, NY - Some of the market movers continue to face weak outlook despite higher earnings in some cases. The market analysts are awaiting strong government action, just two days after Democratic leader Barack Obama was elected to the White House.
Constellation Energy (NYSE: CEG):
Constellation Energy swings to third quarter loss of $225.7 million, or $1.27 per share, compared with net profit of $251.4 million, or $1.38 per share, in the year ago period. The company will be acquired by MidAmerican Energy Holdings Co. for around $4.7 billion. Excluding special items, the firm posted earnings of 76 cents per share in the third quarter. In the quarter, revenue of the company dropped by as much as 9 percent to $5.32 billion, from $5.86 billion in a year earlier period. The market analysts on Wall Street were expecting the company to post net income, excluding special items, to be at 88 cents per share on revenue of $5.11 billion in the quarter. Constellation reported after-tax charge of $314.1 million or $1.76 per share to writedown the value of some of its businesses, including its Merchant energy segment. "During the past several months, we have been focused on reducing risk and the overall collateral requirements of our Merchant segment," Mayo A. Shattuck III, chairman, president and chief executive officer of Constellation Energy, said in a statement on Thursday. Shares of the company were trading down by 15 cents or 0.64 percent to $23.40 in pre-market, after closing down by 2.44 percent to $23.55 on Wednesday in New York.
King Pharmaceuticals Inc (NYSE: KG):
The company swings to profit in its third quarter report as it posted net profit of $85 million, or $0.34 per share, compared to a net loss of $41 million, or $0.17 per share, in the third quarter of the prior year. Excluding one-time items, adjusted net income in the third quarter was at 33 cents a share compared with 52 cents a share a year earlier. But the company's revenue dropped by around 29 percent to $388.4 million, as sales of the company's Altace blood-pressure drug continued to decline amid rising competition in generic drug market segment. Sales of Altace drug totaled $30 million during the third quarter of 2008, compared to $169 million during the third quarter of 2007. The market analysts had expected the company to post earnings of 26 cents a share in the quarter on revenue of $362.14 million. King Pharmaceuticals has offered to purchase Alpharma Inc (ALO.N) for around $1.6 billion. "The transaction would create a diversified specialty pharmaceutical company with greater commercialization capabilities, an expanded portfolio of pain management products and a strengthened pipeline," Brian A.
