ABB (ABB) NewsBite - ABB Q2 Profit Climbs but Misses Estimates

Posted on Thursday, July 24, 2008 10:55 AM

ABB Ltd. (ABB) opened at 27.32. So far today, the stock has hit a low of 27.29 and a high of 27.40. ABB is now trading at 27.35, down 1.07 (-3.92%). The stock hit its 52 week high of 33.39 in May and set its 52 week low of 20.42 in August. ABB has been climbing for most of the past year. ABB reported this morning its second-quarter profit increased 34% to $975 million on strong global demand for reliable electrical power generation and improved industrial efficiency. Analysts forecast earnings of $1.02 billion. Revenue rose by 27% to $9 billion. Technical indicators for the stock are bearish and steady while S&P gives ABB a neutral 3 STARS (out of 5) hold rating. If you’re looking for a hedged play on this stock, consider a September bear-call credit spread above the $30 range. ABB stock could rise up to 9.7% before expiration and this position would still be profitable. [RHF - Seven Summits Strategic Investments NewsBite]