For Immediate Release
Chicago, IL – October 22, 2009 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Eli Lilly & Co. (LLY), Wells Fargo (WFC), Bank of America Corporation (BAC), Citigroup, Inc. (C) and JPMorgan Chase & Co. (JPM).
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Here are highlights from Wednesday’s AnalystBlog:
Eli Lilly Beats, Raises Guidance
This morning, Eli Lilly & Co. (LLY) reported strong third quarter financials. The company’s earnings per share of $1.20 surpassed the Zacks Consensus Estimate of $1.02 and 98 cents reported in the year-ago period. Revenues recorded a 7% year on year increase to $5.56 billion, driven by an increase in both volume and prices, partially offset by unfavorable impact of foreign exchange.
Of total revenues, while product sales were $5.4 billion (an increase of 6%), collaboration and other revenues accounted for the remaining $176.5 million (an increase of 51%), primarily due to the inclusion of Erbitux revenue as a result of the ImClone acquisition.
The company’s other products recorded robust growth during the quarter compared to the year-ago period – Zyprexa (3% growth to $1.2 billion), Cymbalta (10% growth to $790.2 million), Humalog (16% growth to $500 million), Alimta (47% growth to $462 million).
Wells Fargo Surprises Yet Again
Before the market opened Wednesday morning, Wells Fargo (WFC) reported third quarter 2009 diluted earnings of 56 cents per common share, compared with 57 cents in the second quarter 2009 and 49 cents in the third quarter 2008.
Net income applicable to common shareholders came in at $2.6 billion, almost flat compared with the prior quarter and up 61.1% year-over-year. The results were substantially ahead of the Zacks Consensus Estimate of 35 cents per share.
Results were aided by strong top-line growth across all key business segments, strong deposits and a robust loan growth rate. Unlike its major peers, Wells Fargo witnessed strong growth in its traditional banking operations, especially in its mortgage business acquired from Wachovia. Net interest income of $11.7 billion climbed 83.1% year-over-year.
However, credit quality deteriorated further and losses rose sharply during the quarter. The bank expects credit losses and non-performing assets to increase further, though some moderation was visible. Net charge-offs rose to $5.1 billion (2.50% of average loans) from $4.4 billion (2.11%) in the prior quarter and $2.0 billion (1.96%) in the prior-year quarter. Non-performing assets grew to $23.5 billion (2.93% of loans) from $18.3 billion (2.23%) in the prior quarter and $6.2 billion (1.53%) in the prior-year quarter.
Credit-loss provisions were $6.1 billion, up 144.9% from a year earlier and 20.2% from the prior quarter. The allowance for credit losses totaled $24.5 billion at Sept. 30, 2009, compared with $23.5 billion at June 30, 2009 and $8.0 billion at Sept. 30, 2008.
Large banks including Wells Fargo, Bank of America Corporation (BAC), Citigroup, Inc. (C) and JPMorgan Chase & Co. (JPM) have suffered from the increase in loan losses which were offset by strong growth in trading operations.
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