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Financial services earnings roundup, May 5

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Financial services earnings roundup, May 5

With earnings season in gear,S&P Global Market Intelligence presents a snapshot of recently reportedfinancial results for companies in the financial services space.

Asset manager

first-quarter net income ofC$116.6 million, or 42 Canadian cents per share, compared with C$144.5 million,or 51 cents per share, in the year-ago period.

Thefirst quarter of 2016 included a C$9.6 million after-tax charge related toseverance and transition costs. The first quarter of 2015 included after-taxadjustments of C$7.5 million to contingent consideration, a C$1.4 millionwritedown of fund management contracts and a C$2.9 million provision for legalcosts.

Adjustingfor these items, net income was C$126.1 million, or 46 cents per share,compared with C$141.4 million, or 50 cents per share, in the prior-year quarter.

TheS&P Capital IQ consensus normalized EPS estimate for the quarter was 48cents. 


reported afirst-quarter economic net loss of $73.0 million, or 18 cents per share,compared with economic net income of $93.5 million, or 23 cents per share, inthe year-ago quarter.

TheS&P Capital IQ consensus normalized EPS estimate for the quarter was 5cents.

TheGAAP net loss attributable to the company was $32.8 million, or a loss of 19cents per class A share, compared with net income attributable to the companyof $30.9 million, or 9 cents per class A share, in the first quarter of 2015.


Broker/dealer

reportedfirst-quarter net income of 30.1 million, or 31 cents per share, compared with$14.8 million, or 16 cents per share, a year ago.

Adjustedearnings were $35.6 million, or 37 cents per share, up from $20.1 million, or21 cents per share, a year ago.


Financial technology

GAAP first-quarter net incomeof $289 million, or $1.27 per share, compared with $178 million, or 73 centsper share, in the prior-year period.

Thefirst-quarter 2016 GAAP EPS included a net investment gain of 39 cents pershare driven by a sale of a business interest at StoneRiver Group LP, a jointventure in which the company owns a 49% interest.

Adjustednet income was $241 million, or $1.06 per share, compared with $215 million, or89 cents per share, in the year-ago period.

TheS&P Capital IQ consensus normalized EPS estimate for the quarter was $1.02.

Forthe full year 2016, Fiserv continues to expect internal revenue to grow in a rangeof 5% to 6%. The company also expects adjusted EPS in a range of $4.32 to $4.44.

TheS&P Capital IQ consensus normalized EPS estimate for 2016 is $4.39.


first-quarter GAAP net earningsof $150.4 million, or 43 cents per share, compared with $110.9 million, or 32cents per share, in the year-ago quarter.

Adjustednet earnings for the period were $182.4 million, or 53 cents per share,compared with $157.1 million, or 45 cents per share, in the first quarter of2015.

First-quarter2016 adjusted net earnings exclude share-based compensation expense, which hada net impact on GAAP earnings of $13.4 million, or 4 cents per share. Adjustednet earnings also reflect adjustments related to Cerner's acquisition of theHealth Services business, including: Health Services acquisition-relatedamortization, which reduced GAAP net earnings and EPS by $12.8 million and 4cents, respectively; other acquisition-related adjustments, which reduced GAAPnet earnings and EPS by $2.0 million and 1 cent, respectively; and anacquisition-related deferred revenue adjustment, which is not included in GAAPnet earnings, but increases adjusted net earnings and EPS by $3.8 million and 1cent, respectively.

TheS&P Capital IQ consensus normalized EPS estimate for the quarter was 53cents.

Forthe second quarter, the company expects revenue between $1.18 billion and $1.25billion and adjusted EPS before share-based compensation expense andacquisition-related adjustments between 56 cents and 58 cents. For 2016, thecompany continues toexpect revenue between $4.9 billion and $5.1 billion and adjusted EPS beforeshare-based compensation expense and acquisition-related adjustments between$2.30 and $2.40.

TheS&P Capital IQ consensus normalized EPS estimate for the second quarter is57 cents, and $2.35 for 2016.


first-quarter net income of$40.2 million, or 48 cents per share, compared with $28.4 million, or 32 centsper share, in the year-ago period.

Earningsexcluding acquisition adjustments were $50.9 million, or 61 cents per share, comparedwith $32.9 million, or 37 cents per share, in the year-ago period.

TheS&P Capital IQ consensus normalized EPS estimate for the quarter was 45cents.

Thecompany updated itsfinancial outlook for 2016. It now expects GAAP EPS of $2.27 to $2.49 and EPSexcluding acquisition adjustments of $2.67 to $2.89. The company previouslyprojected GAAP EPS in the range of $2.15 to $2.37 and EPS excluding acquisitionadjustments between $2.55 and $2.77 for the full year 2016.

TheS&P Capital IQ consensus normalized EPS estimate for the year is $2.76.


net earningsattributable to the company of $53.8 million, or 34 cents per share, for itsfiscal third quarter, down from $56.3 million, or 35 cents per share, in theprior-year quarter.

Adjustednet earnings attributable to the company were $66.4 million, or 42 cents pershare, up from $54.2 million, or 33 cents per share, in the year-ago quarter.

TheS&P Capital IQ normalized EPS estimate for the quarter was 41 cents.

CDKglobal updated itsfiscal 2016 growth forecasts. The company continues to expect 4% to 5% revenuegrowth and now expects 26% to 27% growth in earnings before income taxes, 27%to 28% growth in net earnings attributable to the company and approximately 30%growth in net EPS attributable to the company. The company previously expected25% growth in earnings before income taxes, 23% growth in net earningsattributable to the company and more than 25% growth in net EPS attributable tothe company in fiscal 2016.


reported fiscal third-quarter net earnings of $63.7million, or 52 cents per share, compared with $54.0 million, or 43 cents pershare, in the year-ago quarter.

Adjustednet earnings were $70.0 million, or 58 cents per share, compared with $58.8 million,or 47 cents per share, in the fiscal third quarter of 2015.

TheS&P Capital IQ consensus normalized EPS estimate for the quarter was 51cents.

Thecompany expects adjusted EPS growth to be around the midpoint of its previouslyprovided guidance of8% to 12% for fiscal 2016.


reported first-quarter GAAP net income of $7.0 million,or 7 cents per share, compared with $26.2 million, or 30 cents per share, ayear ago.

Adjustednet income was $75.4 million, or 74 cents per share, compared with $52.7million, or 60 cents per share, in the year-ago period.

TheS&P Global Capital IQ consensus normalized EPS estimate for the quarter was72 cents.

Forthe second quarter, the company expects adjusted revenue of $378.0 million to$384.0 million and adjusted net income of $76.0 million to $78.5 million.

Thecompany raised itsguidance for 2016. The company now expects adjusted revenue of $1.51 billion to$1.54 billion and adjusted net income of $321.0 million to $337.5 million. Thecompany previously expected adjusted revenue of $1.36 billion to $1.38 billionand adjusted net income of $312.5 million to $325.0 million.


first-quarter net incomeavailable to common shareholders of $58.6 million, or 27 cents per share, upfrom $44.7 million, or 20 cents per share, in the prior-year quarter.

Adjustednet income for the quarter was $66.2 million, or 31 cents per share, up from$52.9 million, or 24 cents per share, in the prior-year period.

TheS&P Capital IQ consensus normalized EPS estimate for the quarter was 29cents.

Thecompany continues toexpect total revenue to be in the range of $2.62 billion to $2.66 billion andadjusted EPS of $1.40 to $1.42 for 2016.

TheS&P Capital IQ consensus normalized EPS estimate for 2016 is $1.42.


a first-quarter net lossattributable to common stockholders of $96.8 million, or 29 cents per share,compared with a loss of $48.0 million, or 33 cents per share, in the firstquarter of 2015.

TheS&P Capital IQ consensus GAAP estimate for the quarter was a per-share lossof 12 cents.

Forthe second quarter, the company expects adjusted revenue of $151 million to$156 million and adjusted EBITDA from a loss of $4 million to zero.

Thecompany updated itsguidance for 2016. The company now expects adjusted revenue of $615 million to$635 million and adjusted EBITDA of $8 million to $14 million. Previousguidance was adjusted revenue of $600 million to $620 million and adjusted EBITDAof $6 million to $12 million.


Specialty lender

first-quarter netincome of $92.9 million, or 85 cents per share, compared with $19.3 million, or19 cents per share, in the prior-year period.

Adjustednet income was $151.1 million, or $1.38 per share, compared with $112.8million, or $1.03 per share, in the year-ago quarter.


first-quarter net incomeattributable to the company of $1.14 billion, compared with $1.89 billion inthe year-ago quarter.

Netincome attributable to common shareholders was $217 million, or 4 cents pershare, compared with $92 million, or 2 cents per share.

Totalcomprehensive income attributable to the company dropped to $936 million from$1.80 billion. The year-over-year decline was attributed to higher fair valuelosses and lower net revenues, partially offset by an increase incredit-related income.


first-quarter GAAP net incomeattributable to the company of $48.0 million, or $1.11 per share attributableto shareholders, compared with $64.8 million, or $1.40 per share, in the sameperiod a year ago.

Excludingderivative market value and foreign currency adjustments, net income was $61.7million, or $1.43 per share, for the first quarter, compared with $63.4million, or $1.37 per share, for the same period in 2015. The company reportedan expense from derivative market value and foreign currency adjustments of$13.7 million after tax, or 32 cents per share, for the first quarter, comparedwith income of $1.3 million after tax, or 3 cents per share, for the firstquarter of 2015.

Netinterest income was $101.6 million in the quarter, compared with $102.6 millionin the prior-year period.