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Earnings Analysis: 
ABN Amro Reports 35% Net Growth
Author: Ivaylo Dagnev
123jump.com
Last Update: 9:47 AM EST October 31 2005



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ABN Amro, banking group, posted 35% increase in Q3 net profit to 1.2 billion euros, beating analyst forecasts of 781 million euros ($948 million).

 
ABN Amro, (ABN: chart), said that the hard-fought acquisition of an Italian bank laid the groundwork for further growth. Second-half results are expected, at least, to match the first half''s profit of 1.88 billion euros, against previous expectations of a worse performance. ABN Amro announced that profit advanced from the second quarter on due the continued growth of the consumer and commercial banking activities, an improved performance of wholesale clients division, as well as proceeds from the sale of Real Seguros and Nachenius, Tjeenk & Co.

Kellogg Co, (K: chart), food and cereal company, posted Q3 earnings of 66 cents a share, up from 59 cents a share in the year-ago period on revenue growth, topping analyst estimate of 64 cents a share. The company also lifted its 2005 earnings forecast to $2.32 to $2.34 a share from its prior estimate of $2.30 to $2.33 a share.The company rose its 2005 stock buyback program to $675 million, and authorized an additional $650 million program for 2006.

Valero Energy Corp., (VLO: chart), refining and marketing of environmentally clean products company, announced that Q3 net income rose to $4.37 a share, up from $1.57 a share in the same period last year, topping analysts’ forecasts of $4.23 a share. Including a $621 million pretax charge related to inventory valuation, net income came in at $2.94 a share.

Humana Inc., (HUM: chart), health insurer, reported Q3 net income fell 41% to 30 cents a share despite 20% revenue growth on a class-action settlement and expenses relating to Hurricane Katrina. If not for those items, it earnings would have been 60 cents a share, topping analysts’ views of 51 cents a share.

Cognizant Technology Solutions Inc., (CTSH: chart), IT designer, reported Q3 net income of 28 cents a share, up from 18 cents in the year-ago period on 52% revenue growth.

Encore Medical Corp., (ENMC: chart), orthopedic devices manufacturer, posted Q3 net income of 5 cents a share, up from 3 cents a share in the year-earlier period on 171% revenue growth, matching analyst estimate of 5 cents a share.

Mercury General Corp, (MCY: chart), an auto insurance underwriter, announced that Q3 net income increased 12% to $1.33 a share, up vs. net income of $1.19 a share in the year-earlier period, topping analysts’ expectations of $1.27 a share.

Nam Tai Electronics, (NTE: chart), maker of electronic components, posted Q3 net income of 43 cents a share, a penny down from 44 cents a share in the year-earlier period despite sales growth.
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