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Financial services earnings roundup, April 27

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Financial services earnings roundup, April 27

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

Asset manager

net income attributableto the company of $360.4 million, or 61 cents per share, for the fiscal second quarterended March 31, down from $606.5 million, or 98 cents per share, compared with theprior-year quarter.

The S&PCapital IQ consensus GAAP EPS estimate for the quarter was 64 cents.


Broker/dealer

reported first-quarter net income attributable to the companyof $132 million, or 78 cents per share, up from $9 million, or 5 cents per share,in the prior-year quarter.

On anon-GAAP basis, first-quarter net income attributable to the company was $153 million,or 91 cents per share, up from $138 million, or 80 cents per share, in the year-agoquarter.

The S&PCapital IQ consensus normalized EPS estimate for the quarter was 89 cents.

Nasdaqrevised its non-GAAP operatingexpense guidance for 2016 to between $1.18 billion and $1.23 billion from between$1.11 billion and $1.16 billion to reflect the impact of the acquisitions of Chi-XCanada and Marketwired, which closed during the first quarter, as well as the pendingacquisition of BoardVantage, which is expected to close in the second quarter.


first-quarter net incomeof $29.0 million, or 77 cents per share, compared with $24.6 million, or 65 centsper share, in the year-ago quarter.

The FactSetconsensus EPS estimate was 78 cents.


first-quarter net income availableto common shareholders of $13.7 million, or 5 cents per share, compared with $14.1million, or 6 cents per share, in the year-ago period.

Pretaxdistributable earnings before noncontrolling interest in subsidiaries and taxeswere $90.8 million, or 22 cents per share, compared with $75.2 million, or 22 centsper share, a year ago. Posttax distributable earnings to shareholders were $77.0million, or 18 cents per share, up from $62.1 million, or 18 cents per share, inthe prior-year period.

BGC anticipatessecond-quarter distributable earnings revenues of between $645 million and $685million and second-quarter pretax distributable earnings before noncontrolling interestin subsidiaries and taxes to be in the range of $85 million to $100 million.


first-quarter net incomeattributable to the company of $5.3 million, or 12 cents per share, compared with$4.3 million, or 10 cents per share, in the year-ago quarter.

Adjustedpro forma net income attributable to the company was $32.8 million, or 63 centsper share, up from $29.7 million, or 56 cents per share, for the prior-year quarter.

The S&PCapital IQ consensus normalized EPS estimate for the quarter was 68 cents.


Financial technology

first-quarter GAAP net income of$365 million, or 30 cents per share, compared with $255 million, or 21 cents pershare, a year ago.

Non-GAAPpro forma net income was $452 million, or 37 cents per share, compared with $353million, or 29 cents per share, in the year-ago quarter.

The S&PCapital IQ consensus normalized EPS estimate for the quarter was 35 cents.

For thesecond quarter, PayPal expects net revenues to grow 16% to 18% on a foreign exchangeneutral basis, and 12% to 14% at current spot rates to a range of $2.57 billionto $2.62 billion. PayPal expects GAAP EPS in the range of 25 cents to 27 cents andnon-GAAP EPS in the range of 34 cents to 36 cents.

Estimatednon-GAAP amounts for the three months ending June 30 reflect adjustments of approximately$150 million to $170 million in the aggregate that primarily exclude estimates ofstock-based compensation expense, employer payroll taxes on stock-based compensation,and amortization of acquired intangible assets.

PayPalreiterated its full-year2016 guidance. The company expects net revenues to grow 16% to 19% on a foreignexchange neutral basis, and 14% to 16% at current spot rates to a range of $10.5billion to $10.7 billion. PayPal expects GAAP EPS in the range of $1.09 to $1.14and non-GAAP EPS in the range of $1.45 to $1.50.

Estimatednon-GAAP amounts for the 12 months ending Dec. 31 reflect adjustments of approximately$585 million to $615 million in the aggregate that primarily exclude estimates ofstock-based compensation expense, employer payroll taxes on stock-based compensation,and amortization of acquired intangible assets.

The S&PCapital IQ consensus normalized EPS estimate for the second quarter is 35 centsand for 2016 is $1.49.


first-quarter net income attributableto the company of $102.1 million, or 85 cents per share, compared with $88.3 million,or 73 cents per share, in the prior-year period.

Adjustednet income attributable to the company was $148.6 million, or $1.23 per share, comparedwith $129.7 million, or $1.07 per share, in the prior-year period. The adjustedEPS for the first quarter of 2016 excludes Veda acquisition-related amounts andfor the first quarter of 2015 excludes costs for the realignment of internal resources.Adjusted EPS for both quarters excludes acquisition-related amortization expense,net of associated tax impacts.

The S&PCapital IQ consensus normalized EPS estimate for the quarter was $1.15.

For thesecond quarter, the company expects revenue, including Veda, to be between $795million and $805 million. Adjusted EPS is expected to be between $1.34 and $1.36.

The companyalso increased its full-year2016 outlook. The company now expects revenue, including the impact of Veda, tobe between $3.05 billion and $3.15 billion, up from the previous guidance of $3.0billion to $3.1 billion. Adjusted EPS for the year is expected to be between $5.15and $5.25, up from the previous guidance of $4.95 to $5.05.

The S&PCapital IQ consensus normalized EPS estimate for the second quarter is $1.33 andfor 2016 is $5.05.


first-quarter net income of $16.7million, or 52 cents per share, compared with a net loss of $6.1 million, or a lossof 19 cents per share, in the prior-year period.

Non-GAAPnet income was $30.7 million, or 95 cents per share, compared with $10.8 million,or 34 cents per share, in the same quarter a year ago.

The S&PCapital IQ consensus normalized EPS estimate for the quarter was 69 cents.

For thesecond quarter, the company expects revenue of approximately $204 million to $206million and non-GAAP net income per share of approximately 80 cents to 84 cents.

The companyupdated its outlook forfull year 2016. The company now expects revenue of approximately $834 million to$840 million and non-GAAP net income per share in a range of approximately $4.00to $4.10. The company previously expected revenue of approximately $830 millionto $840 million and non-GAAP net income per share in a range of approximately $3.62to $3.72.

The S&PCapital IQ consensus normalized EPS estimate for the second quarter is 73 centsand for 2016 is $3.72.


Specialty lender

reported first-quarternet income of $200.7 million, or 56 cents per share, down from $246.3 million, or69 cents per share, in the year-ago period.

Excludingan impairment on intangible assets, adjusted net income for the first quarter was$213.4 million, or 59 cents per share.

The S&PCapital IQ consensus normalized EPS estimate for the quarter was 56 cents.


first-quarter net loss attributableto stockholders of $111.3 million, or 90 cents per share, compared with net incomeof $34.4 million, or 27 cents per share, in the year-ago quarter.

Pretaxloss for the quarter was $102.1 million. Pretax results were impacted by a numberof significant items, including but not limited to $32.7 million of unfavorableinterest rate-driven fair value changes related to Ginnie Mae and government-sponsoredenterprise mortgage servicing rights, excluding runoff, and $30.0 million of monitorcosts. Adjusting for those two significant items, the pretax loss was $39.4 million.