Oct 30, 2009 (MarketNewsVideo.com via COMTEX News Network) -- Genworth Financial (GNW) reported net income of 10 cents, before provision for noncontrolling interests. That compares to a 60 cent loss in the same quarter last year. The company recently brought its ownership interest in Genworth MI Canada down to 57 and a half percent from 100, through an IPO on the Toronto Stock Exchange. That company also reported earnings for the quarter after the bell Thursday, which came in at 67 cents per share.
Genworth Financial showed an improvement in sequential sales, and CEO Michael Fraizer encouraged investors, saying the company sees multiple signs of stabilization and improvement in its markets. Genworth was originally a spinoff from General Electric (GE), coming public in 2004 at 19.50 per share, which at the time was below the expected range of 21 to 23 dollars per share. The stock proceeded to trade higher over the years, to above the 35 dollar mark as late as 2007, before getting slammed by the financial crisis which sent shares plummeting to a low of 70 cents per share at this time last year. Shares have since made a remarkable recovery over the past year off of that low, and on Friday morning were trading just below the 11 dollar mark, up about 7 and a half percent on the day.
Also among Friday's financial earnings gainers is iStar Financial (SFI), gaining about 9 and a half percent in morning trading, after reporting results for the quarter. The company lost 2 dollars and 55 cents per share, hurt by a large loan loss provision. A whopping 42% of total managed loans were non-performing at quarter end. Adjusted earnings came in at 2 dollars and 37 cents per share, a bit worse than analyst expectations for a loss of 2 dollars and 30 cents.
In 2007 just before the financial crisis hit, iStar had purchased Fremont's commercial real estate portfolio for 2 billion dollars. At quarter end the Fremont portfolio had a managed value of 3.1 billion dollars, down from 3.6 billion last quarter, and iStar valued its interest at 2.4 billion. The weighted average maturity of the Fremont portfolio is six months.
The preceeding is a transcript of the MarketNewsVideo.com video published at: http://www.marketnewsvideo.com/?id=200910arningsGainers103009&mv=1.
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