BUZZ Before the Bell: Allstate and Frontier SURGE, Facebook FALTERS
After closing more than 5 percent higher during regular trading Tuesday, Frontier Communications (NYSE:FTR) shares gained another 6 percent pre-market Wednesday, despite missing second quarter estimates. Net income fell 44.2 percent to $18 million, compared to $32.3 million a year earlier. Revenue also declined 4.8 percent to $1.26 billion. Analysts expected earnings of 5 cents per share on $1.26 billion worth of revenue.
Shares of Electronic Arts (NASDAQ:EA) popped more than 1.54 percent in late trading Tuesday, yet are flat today. The video game company reported net income of $201 million (63 cents per share) for the first quarter, compared to $221 million (66 cents per share) a year earlier. “We have established an unmatched diversity in our business with multiple brands performing across several channels, business models and geographies,” said John Riccitiello, chief executive officer. “This allows us to drive profitable growth in a rapidly transforming marketplace for games.” Take-Two Interactive Software (NASDAQ:TTWO) shares fell 2.05 percent after their own earnings release.
Allstate (NYSE:ALL) shares jumped 4 percent in pre-market action Wednesday. The insurer reported a profit of $423 million (86 cents per share) for the second quarter, compared to a net loss of $620 million a year earlier. “We made good progress this quarter on our 2012 operating priorities of maintaining auto profitability, improving returns in homeowners insurance and annuities, growing insurance premiums, and proactively managing our investments and capital,” said Thomas J. Wilson, chairman, president and chief executive officer.
Facebook (NASDAQ:FB) shares continued to struggle after reporting disappointing financial results last week. Shares closed 6.22 percent lower on Tuesday to hit as low as $21.61 on heavy volume, marking a new all-time low since going public in May. Facebook continued to slide 0.41 percent in pre-market trading to $21.62 per share.
Investor Insight: These 2 Companies Enjoyed Facebook’s Advertising