Activision Blizzard, AECOM Technology Corp., American Homes 4 Rent, American States Water Co., Colony Financial Inc., Hudson Pacific Properties and Tutor Perini Corp. were among firms reporting earnings.
ACTIVISION BLIZZARD
Santa Monica video game publisher Activision Blizzard on
Tuesday beat forecasts despite a drop in revenue and net income for the second quarter.
Activision, which publishes games in the “Call of Duty” and “World of Warcraft” series, on Tuesday reported net income of $204 million (28 cents a share) for the quarter ending June 30, compared with net income of $324 for the same quarter last year. Revenue fell 8 percent to $970 million.
Activision said digital sales were strong for titles such as “World of Warcraft” and “Diablo 3: Reaper of Souls.” Digital sales comprised about half of the company’s revenue for the quarter, up from 37 percent in the same quarter a year ago.
Net income excluding stock-based compensation, deferred revenue from games and other items was 6 cents a share on revenue of $658 million. Analysts had expected net income of 2 cents a share and revenue of $608 million.
Activision Chief Executive Bobby Kotick said he’s optimistic about forthcoming game releases, such as “World of Warcraft: Warlords of Draenor.”
“Over the next few months we expect to release some of the very best games in our company’s history,” Kotick said in a statement.
Shares rose 64 cents, or 3 percent, to $23.00 in afterhours trading on the Nasdaq.
AECOM TECHNOLOGY CORP.
Downtown L.A. engineering and technical services firm Aecom Technology Corp. reported better-than-expected earnings Tuesday morning, helped by U.S. tax deductions.
Aecom reported net income of $69.2 million (70 cents a share) for the quarter ended June 30, down 2 percent from the same quarter a year ago. Revenue fell 5 percent to $2.2 billion.
Analysts had expected net income of 64 cents a share and revenue of $1.96 billion.
Aecom executives said the firm benefitted from unexpected U.S. tax deductions that added nearly 10 cents to the firm’s per-share earnings for the quarter.
Shares closed down slightly Tuesday at $34.38 on the NYSE.
AMERICAN HOMES 4 RENT
American Homes 4 Rent reported late Monday second-quarter funds from operations in line with Wall Street expectations, as the company remains aggressive in expanding its housing portfolio.
The Agoura Hills single-family landlord reported FFO of $35.3 million (15 cents a share) for the quarter ended June 30. The company does not have comparable numbers for the second quarter last year, as it was prior to going public. Revenue increased 22 percent to $94.3 million.
FFO is a REIT metric that adds amortization and depreciation expenses into net income to get a better picture of cash flow. Analysts had expected FFO of 15 cents on revenue of $93.2 million, according to Thomson Financial.
On a net income basis, the company lost $12.3 million (-7 cents).
“Our fully internalized operating platform is bearing fruit as evidenced by our strong increase in leased properties of nearly 2,700 homes, a portfolio occupancy of 86 percent and a strong and consistent stabilized portfolio occupancy,” said Chief Executive David P. Singelyn, in a prepared statement.
American Homes has remained aggressive in growing its business, even as a lack of available stock and rising costs due to higher home prices are challenging the sector.
Its total portfolio increased by 1,668 homes to 27,173 as of June 30 in selected submarkets in 22 states.
In June, the company announced a venture with Alaska Permanent Fund Corp. to buy, renovate and lease homes, that could add up to $500 million. And last month, American Homes purchased Beazer Pre-Owned Rental Homes Inc., also an institutional landlord, for a little more than $260 million in debt and stock.
In a separate announcement Monday, the company announced a 5 cents dividend for the third quarter, payable on Sept. 30 to shareholders of record as of Sept. 15
Shares closed up 14 cents, or less than 1 percent, to $18.11 on the New York Stock Exchange.
AMERICAN STATES WATER CO.
A drop in military contracts led American States Water Co. to report earnings on Tuesday that were down from last year and short of analyst estimates.
Net income at the San Dimas water service company was $15.4 million (39 cents a share), down 8 percent from the second quarter last year. Revenue was down 4 percent to $116 million.
Diluted earnings per share were down 10 percent from last year, short of the 43 cents a share consensus analyst estimate.
American States Water’s primary business is the Golden State Water utility, supplying water to several jurisdictions in California. The company also has a unit that builds and maintains water systems on U.S. military bases, as well as a small electric utility.
Lower revenue was primarily due to an anticipated drop in water infrastructure construction activity at two major military bases. Higher revenue from rate increases for the water utility was offset by higher income taxes.
Shares closed slightly lower Tuesday at $30.50 on the NYSE, but were up to $30.71 in after hours trading following the release of earnings.
COLONY FINANCIAL INC.
Santa Monica investment firm Colony Financial Inc. reported strong profit growth for the second quarter of 2014, but some analysts expected more.
The firm reported net income of $32.1 million (34 cents a share) for the three months ended June 30, up 58 percent from the same period a year earlier. Analysts expected earnings of 36 cents a share. Colony signed agreements to deploy $725 million in loans and investments during the quarter.
The company’s management said that most of its deal flow consists of a wide range of opportunities in Europe and special financing situations in the U.S.
“Economic and credit cycles around the globe are in different stages and we are fortunate to be able to take advantage of these divergent market conditions,” Chief Executive Richard Saltzman said in a press release accompanying the earnings.
Shares of Colony on Tuesday closed up slightly at $22.06 on the NYSE before earnings were reported.
HUDSON PACIFIC PROPERTIES
Hudson Pacific Properties, a Los Angeles real estate investment trust, reported earnings that beat expectations.
Hudson reported funds from operations of $19.8 million (28 cents a share), for the quarter ended June 30, 42 percent greater than the $13.9 million in the same period last year.
Analysts expected earnings of about 26 cents a share.
The company’s leasing activity during the past quarter included deals with digital advertising firm Rocket Fuel Inc. and rideshare app company Uber Technologies in the same Market Street office complex in San Francisco.
Shares Hudson Pacific Properties closed at $25.76 a share Tuesday on the NYSE. The company reported earnings after markets closed.
TUTOR PERINI CORP.
Tutor Perini Corp. announced mixed earnings on Tuesday that disappointed the market.
The Sylmar construction company reported net income of $28.5 million (58 cents a share) for the second quarter ended June 30, compared to $15.5 million (32 cents) for the same quarter last year. Revenue increased 3 percent to $1.08 billion.
The results exceeded analysts average net income estimate of 48 cents but missed revenue expectations of $1.15 billion, according to Thompson Financial Network.
Company attributed its higher net income to more business in its civil engineering segment and high-than-expected recoveries from settled lawsuits. Also, in the last year the company increased its order backlog by nearly 18 percent to $7.8 billion.
Shares closed down 48 cents, or 1.7 percent, to $27.24 on the New York Stock Exchange.
