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Financial services earnings roundup, Jan. 26

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Financial services earnings roundup, Jan. 26

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

Asset manager

Blackstone Group LP reported economic net income of $811.6 million, or 68 cents per unit, for the fourth quarter of 2016, up significantly from $435.7 million, or 37 cents per unit, in the year-ago quarter.

The S&P Capital IQ consensus normalized EPS estimate for the quarter was 66 cents.

Distributable earnings for the quarter decreased year over year to $691.8 million, or 55 cents per common unit, from $878.0 million, or 72 cents per common unit.

On a GAAP basis, Blackstone recorded net income attributable to the company of $368.0 million, or 55 cents per common unit, compared with $200.9 million, or 23 cents per common unit, in the year-ago quarter.

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T. Rowe Price Group Inc. reported fourth-quarter 2016 net income allocated to common shareholders of $371.4 million, or $1.50 per share, up from $298.5 million, or $1.17 per share, in the year-ago period.

Adjusted net income attributable to the company totaled $304.7 million, or $1.21 per share, versus $277.2 million, or $1.07 per share, in the 2015 fourth quarter.

The S&P Capital IQ consensus normalized EPS estimate for the quarter was $1.41.

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Invesco Ltd. reported fourth-quarter 2016 adjusted net income attributable to the company of $240.1 million, or 59 cents per share, down from $243.8 million, or 58 cents per share, in the year-ago quarter.

The S&P Capital IQ consensus normalized EPS estimate for the quarter was 58 cents.

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Federated Investors Inc. reported fourth-quarter 2016 net income of $55.8 million, or 52 cents per share, compared with $47.6 million, or 46 cents per share, in the year-ago period.

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Broker/dealer

E*TRADE Financial Corp. reported fourth-quarter 2016 net income of $127 million, or 46 cents per share, compared with $89 million, or 30 cents per share, in the same quarter of 2015.

The S&P Capital IQ consensus GAAP EPS estimate for the quarter was 42 cents.

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Financial technology

PayPal Holdings Inc. posted fourth-quarter 2016 GAAP net income of $390 million, or 32 cents per share, compared with $367 million, or 30 cents per share, in the year-ago period.

On a non-GAAP basis, the company reported net income of $512 million, or 42 cents per share, up from $443 million, or 36 cents per share, in the prior-year quarter.

The S&P Capital IQ consensus normalized EPS estimate for the quarter was 42 cents.

For the first quarter, PayPal expects revenue to grow 14% to 16% at current spot rates and 16% to 18% on a foreign exchange-neutral basis, to a range of $2.90 billion to $2.95 billion. The company also expects GAAP EPS to be between 31 cents and 33 cents, and non-GAAP EPS to be between 40 cents and 42 cents.

For the full year 2017, PayPal expects revenue to grow 15% to 17% at current spot rates and 17% to 19% on a foreign exchange-neutral basis, to a range of $12.45 billion to $12.65 billion. GAAP EPS is anticipated to be in the range of $1.26 to $1.31, and non-GAAP EPS is expected to be between $1.69 and $1.74.

The S&P Capital IQ consensus normalized EPS estimate for the first quarter is 42 cents, and $1.73 for 2017.

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Specialty lender

Alliance Data Systems Corp. reported fourth-quarter 2016 net income attributable to common shareholders of $10.5 million, or 18 cents per share, down from $174.2 million, or $2.35 per share, in the year-ago quarter.

Core earnings attributable to common shareholders totaled $270.5 million, or $4.67 per share, up from $253.9 million, or $4.13 per share, in the prior-year quarter.

The S&P Capital IQ consensus normalized EPS estimate for the quarter was $4.64.

For 2017, the company expects revenue of $7.7 billion and core EPS of $18.50.

The S&P Capital IQ consensus normalized EPS estimate for 2017 is $18.68.