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Market Update

Time Warner Takes 10% Stake in Hulu; AIG Net Rises, Humana Net Fall


Author: Mukesh Buch
ticker.com
Last Update: 3:20 PM ET August 03 2016

3:00 PM New York – AIG net jumped but revenues declined. Electronic Arts net slid but revenues advanced 6%. Humana profit tumbled 28%. Markel net plunged 14%. RR Donnelley net swung to a loss. Time Warner agreed to acquire 10% in video streaming services provider Hulu.

Tollbooth Index slid 8.16 to 11,051.91.

Earnings Review

American International Group Inc (AIG) soared 7% or $3.81 to $57.95 after the insurance services provider reported revenues in the second-quarter ending in June declined 8.4% from a year ago to $8.75 billion.

Net income in the quarter jumped 6.1% to $1.9 billion or $1.68 per diluted share compared to the $1.8 billion or $1.32 per share from the same quarter last year.

Electronic Arts Inc (EA) gained 63 cents to $77.41 after the video game publisher said total revenues in the first-quarter ending in June advanced 5.8% from a year ago to $1.27 billion.

Net income in the quarter slid 0.4% to $440 million or $1.40 per diluted share compared to the $442 million or $1.32 per share from the same quarter last year.

Humana Inc (HUM) rose 24 cents to $169.81 after the health insurer reported revenues in the second-quarter ending in June jumped 3.3% from a year ago to $13.7 billion.

Net income in the quarter tumbled 27.8% to $311 million or $2.06 per diluted share compared to the $431 million or $2.85 per share from the same quarter last year.

Humana lifted revenues forecast in the year between $54 billion to $54.5 billion from earlier estimated to $53.5 billion and diluted earnings per share of $8.56.

Markel Corporation (MKL) slumped 1.7% or $16.39 to $930.61 after the specialty insurance services provider stated total revenues in the second-quarter ending in June advanced 5.4% from a year ago to $1.37 billion.

Net income in the quarter plunged 13.8% to $78.8 million or $5.41 per diluted share compared to the $91.4 million or $6.72 per share from the same quarter last year.

RR Donnelley & Sons Co (RRD) slumped 2.7% or 49 cents to $17.29 after the commercial and digital printing services provider said net sales in the second-quarter ending in June fell 0.7% from a year ago to $2.7 billion.

Net in the quarter swung to a loss of $14.5 million or 7 cents per diluted share compared to the profit of $43.5 million or 21 cents per share from the same quarter last year.

Time Warner Inc (TWX) jumped 3.1% or $2.36 to $78.08 after the media and entertainment services provider reported total revenues in the second-quarter ending in June fell 5% from a year ago to $6.95 billion.

Net income in the quarter slipped 1.9% to $952 million or $1.20 per diluted share compared to the $971 million or $1.16 per share from the same quarter last year.

Separately, Time Warner’s subsidiary Turner agreed to acquire 10% stake in Hulu LLC, the video streaming service provider valuing the service at $5.8 billion.

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Sources: Data collected by 123jump.com and Ticker.com from company press releases, filings and corporate websites. Market data: BATS Exchange. Inc