Weekly Earnings Highlights: BofA, BNY Mellon, Wells Fargo, Morgan Stanley, Raymond James

A roundup of earnings highlights for the week of Oct. 18 compiled by the AdvisorOne staff:

Citigroup (C), now 12% owned by U.S. taxpayers, said Monday its third-quarter net income was $2.17 billion, or $0.07 a share, beating analysts' estimates by $0.01. Sales of $20.7 billion, however, missed estimates by $45 million.

Bank of America Corp. (BAC) reported Tuesday a net loss of $7.3 billion, or $0.77 per diluted share, in the third quarter of 2010. The loss came largely from a non-tax deductible goodwill impairment charge of $10.4 billion in the bank’s credit card unit due to federal regulations limiting debit fees. In contrast, the global wealth and investment management (GWIM) unit reported profits of $313 million vs. $234 million last year in last year’s Q3. GWIM's largest contributor, Merrill Lynch, reported assets of $1.52 trillion vs. $1.44 trillion a year ago.

State Street Corp. (STT) on Tuesday reported third-quarter 2010 earnings per common share of $1.08, an increase of 64% compared to $0.66 in the third quarter of 2009. Revenue in Q3 2010 was $2.31 billion, up 3% from $2.24 billion at this time last year. The company, whose Q3 2010 results beat analysts’ expectations for earnings per share of $0.83, made its profits primarily by reducing expenses and increasing service fee revenues.

Bank of New York Mellon Corp. (BK) on Tuesday reported third-quarter 2010 profits of $625 million, or $0.51 per common share, compared with a loss of $2.44 billion, or $2.04, in the third quarter of 2009. In BNY Mellon's Clearing Services unit, which includes its correspondent broker-dealer clearing operation and Pershing Advisor Services' RIA custody business, total third-quarter revenue increased to $383 million, paced by an 8% increase in clearing services revenue, which totaled $251 million.

The Goldman Sachs Group (GS) on Tuesday reported third-quarter 2010 revenues of $8.9 billion and profits of $1.9 billion, with earnings per share at $2.98 versus $5.25 for third-quarter 2009 and $0.78 for third-quarter 2010. Analysts’ expectations were for EPS of $2.42.

Wells Fargo (WFC) on Wednesday beat analysts’ expectations, with Q3 earnings per share of $0.60, up 7% from last year’s third quarter. Profits for the quarter were the best ever, $3.34 billion. Analysts’ consensus estimate was about $0.55 a share, and the bank’s profit from Q3 2009 was $3.24 billion, or $0.56 a share. Wells Fargo said its wealth, brokerage and retirement unit, which includes 15,000-plus financial advisors, had revenue of $2.91 billion in the latest quarter, up from $2.87 billion in the second quarter and $2.77 in the same year-ago period.

BlackRock Inc. (BLK) far exceeded analysts’ expectations on Wednesday with third-quarter earnings rising 74% on profits of $551 million versus $317 million a year ago. Earnings per diluted share of $2.75 significantly beat the consensus estimate of $2.39, and also surpassed Q3 2009’s $2.10 EPS.

After experiencing client withdrawals of nearly $8 billion in assets during the second quarter, Morgan Stanley’s U.S.-based advisors produced net inflows of $2.4 billion in the third quarter, the company said Wednesday. When non-U.S. advisors are included, the combined FA force had net inflows of $5 billion vs. outflows of $5.5 billion in the previous quarter and outflows of $11.9 billion in the third quarter of 2009. The full brokerage firm and investment bank, however, said it had a net loss of $91 million, or $0.07 per diluted share, in Q3 vs. third-quarter 2009’s profits of $0.38 per share.

Raymond James Financial said late Wednesday that its net income rose 61% in the fiscal fourth quarter to $69 million, or $0.55 a share vs. about $43 million, or $0.35 a share in the same year-ago period. Net sales were $747.9 million, 12% higher than 2009’s fiscal fourth quarter.

T. Rowe Price Group Inc (TROW.O) said Friday third-quarter profit rose 27% as it drew significant inflows from institutional investors, beating expectations. Earnings were $169.1 million, or $0.64 per share, up from $132.9 million or $0.50 cents per share. Analysts’ consensus estimate surveyed by Thomson Reuters expected T. Rowe to earn $0.60 per share.

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