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Rating:UPDATE 17 | The Q2 Earnings Reports Are In... Not Rated 3.1 Email Routing List Email & Route  Print Print
Tuesday, August 14, 2007

UPDATE 17 | The Q2 Earnings Reports Are In...

Reported by Erin Kello

State Street Global Advisors have announced their Q2 2007 results. Investment management fees for the company are up 22 percent to $284 million from $232 million a year ago. Total assets under management are also up 26 percent to $1.93 trillion as of June 30, compared with $1.53 trillion last year at this time.

Schwab's net income rose to $292 million, up from $251 million a year ago. This is reflected in its EPS, which were right on par with Wall Streeters estimates of 23 cents per share. This is up from the EPS of 19 cents per share for Q2 last year.

BlackRock's EPS is up 2 cents over the analysts' estimate of $1.67 a share. In Q2 of 2006, BlackRock's EPS was only 95 cents. The significant growth in per share returns is the result of the beneficial effect of BlackRock's combination with Merrill Lynch Investment Managers, which closed last September.

JP Morgan's asset-management division earnings leaped ahead 44 percent to $493 million. This is attributed to higher assets under management and improved performances.

The Bank of New York reported an EPS of 59 cents, 2 cents below the analysts' estimates of 61 cents. BoNY reported that merger and integration expenses incurred because of the merger with Mellon, were four cents, excluding this amount would put the EPS at 63 cents, two above the analyst mark. The company reported an net income of $445 million, down from $448 million in Q2 of 2006.

Mellon, which is now part of BoNY as of July 1, recorded an EPS of 67 cents in the quarter before the merger. Mellon reported a net income of $275 million, up from $232 million in Q2 of 2006.

The Bank of America, which owns Columbia Management, reported an EPS of $1.28 per share, 8 cents more than the analysts' estimates of $1.20 per share. The total assets under management from the global wealth management and investment management divisions is up 13 percent to $566 billion. More than half of the gain came from inflows.

Waddell & Reed reported an EPS of 36 cents for Q2 of this year, compared with last year's net loss of 40 cents a share. The loss was due to a $39.4 million settlement with the SEC and the impairment of goodwill associated with one its subsidiaries and totaling $20 million. The company's net income was $29.7 million for Q2 compared with a loss $33 million in the same period last year.

Wells Fargo's asset management group reported a 17 percent growth in assets under management since Q2 2006. Wells Fargo Advantage Funds, the mutual fund business, grew assets by 20 percent from a year ago and ended the quarter with $134 billion in fund balances. This growth was driven by strong fund performance and new balances.

Legg Mason reported earnings of $1.32 per share for the first quarter of the 2008 fiscal year (corresponds to Q2 of 2007). The EPS for Q1 of the 2007 fiscal year was $1.08. Net income was $191 million, compared with $156 million last year at this time.

T. Rowe Price Group reported and EPS of 58 cents per share compared with 49 cents per share for Q2 of last year. Wall Street analysts predictions were right on the money at 58 cents per share. T.Rowe's net revenue for Q2 was $551 million, compared with $446 million in Q2 2006.

SEI Investments reported an EPS of 34 cents per share for Q2 2007, compared with an EPS of 29 cents per share for Q2 2006. SEI collected $276.6 million in asset management, administration, and distribution fees, this is compared with $222.3 million in fess for Q2 of 2006.

Janus Capital Group Inc. reported an EPS of 27 cents, this number beat the street's estimate of 24 cents per share. In Q2 of last year the company reported an EPS of 19 cents. Janus's AUM increased by $10.3 billion in Q2 due to market appreciation and fund performance, long-term net inflows of $2.8 billion and money market net inflows of $1.3 billion.

Nuveen Investments, which was recently bought out by private equity firm, Madison Dearborn Partners, recorded second quarter earnings of $48.6 million, this is up 5 percent from Q2 of last year. On a slightly disappointing note, Nuveen's EPS fell 2 cents shy of the analysts predictions of 60 cents a share, coming in at 58 cents per share.

Federated Investors, Inc. reported an EPS of 54 cents for Q2 2007, compared with 44 cents for the same quarter of 2006. The analysts got this one right on the money, predicting 54 cents a share earnings. Federated's income from continuing operations was $55.3 million for Q2 2007 compared to $46.7 million for Q2 2006.

The Hartford recorded an EPS of $2.39 a share for Q2. This exceeded analyst's expectations of $2.27 a share. The Hartford’s core earnings in the second quarter of 2007 were $764 million compared with $573 million in Q2 of 2006.

The Principal Financial Group reported an EPS of $1.12, beating the Street's estimate of 97 cents per share. Last year's EPS for Q2 was 76 cents. Principal recorded a net income of $303.8 million for Q2 2007, compared with $210.5 million for Q2 2006. U.S. Asset Management and Accumulation was the key driver for the growth. The Full Service Accumulation segment, which includes Principal Funds, is approaching $150 billion AUM, up 43 percent from Q2 2006.

Sun Life Financial, the parent of MFS reported that the company's AUM rose to $202 billion in Q2 of 2007. Second quarter earnings were $62 million, up 32 percent from Q2 of 2006.

INVESCO, parent of AIM and PowerShares, reported an EPS of 21 cents. Assets under management rose to $491.6 billion, up 18 percent from Q2 2006's $413.8 billion. Net revenue for Q2 2007 was $722.5 million, up almost 23 percent from Q2 2006. Also in the report was PowerShares' AUM as of June 30, 2007, which is $11.7 billion.

Morningstar reported earnings of 38 cents per share, beating the analyst's estimate of 34 cents per share. In Q2 of 2006 the EPS was 24 cents per share. Morningstar's net income was $18.3 million in Q2 2007, compared with $11.2 million for Q2 2006.

Barclays Global Investors reported an increase of 12 percent in total income to $1.8 billion for the first six months of 2007. The gain is attributed to increased management fees, especially in the iShares and actively managed businesses. AUM increased by $199 billion to $2.01 trillion.

Hennessy Advisors reported earnings per share of 17 cents for Q2 of 2007, compared with 22 cents per share for Q2 of 2006. The slip in EPS is explained as the result of decreased AUM. Hennessy's total mutual fund assets also decreased to $1.91 billion in Q2 2007, compared to $2.18 billion for Q2 2006.

GAMCO Investors reported earnings of 63 cents per share for Q2 2007, 10 cents off from the analysts estimates of 73 cents per share. The EPS does include a 8 cent reduction per share due to the termination of a compensation agreement with a closed-end fund.

Integrity Mutual Funds reported net income of 1 cent per share, for Q2 of 2007, compared to 0 cents per share for Q2 2006. The company reported revenues of $10.4 million for Q2 2007, compared with $6.4 million for Q2 2006, a 64 percent increase.  

Correction: Due to the discrepancy between the estimates published by Thomson Financial on Invesco's earnings and Invesco's reported earnings, the MFWire has removed the estimates that appeared in the initial version of the story.

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