(By Mayur Pahilajani - iStockAnalyst Writer)
New York, NY - Third quarter earnings for some of the stocks were down more than expected, while others gained on higher sales revenue. Traders may feel confident about the airline sector as crude prices have come down, but the banking sector still remains weak. The pharmaceutical industry has not been completely affected by the financial meltdown and there are some good stocks to buy.
Wachovia Corp (NYSE: WB):
Wachovia Corp. reported that it registered a record loss of as much as $23.9 billion in the third quarter, out of which the company wrotedown $18.7 billion in goodwill related to falling asset values. The company's total loss in the second and third quarter equals to $33 billion. The Charlotte, North Carolina-based said its profit declined to $23.89 billion, or $11.18 per share, compared to earning $1.62 billion, or 85 cents per share, a year earlier period.
Wells Fargo & Co. (NYSE: WFC) is expected to takeover Wachovia for $15.1 billion, a deal that is set without any government's support to cover loan losses that could be as much as $74 billion. Shares of the banking firm were trading down by 12 cents or 1.97 percent to $5.97.
Wellpoint Inc (NYSE: WLP):
The biggest health insurer in the U.S. said on Wednesday that its third quarter profit declined by 5.4 percent led by investments in Lehman Brothers Holdings Inc, Fannie Mae and Freddie Mac. The company reported its net income of $820.7 million, or $1.60 a share, down from $868 million, or $1.45 a share, a year ago in the same period.
During the third quarter, total revenue dropped by 1.8 percent to $14.96 billion. The company's operating revenue, excluding investment income, gains and losses, increased by 2.2 percent to $15.31 billion in the quarter. The writedowns were offset to a certain extent by gain of $460 million, or 90 cents per share, from federal and state tax issues that were dating from 1987 to 2002. Shares of the company were trading down by $2.15 or 5.14 percent to $39.70 during late morning trading session on Wednesday in New York. The stock has lost market value of as much as 52 percent through Tuesday, when it closed at $41.85.
