Prudential Financial Inc.’s (PRU) third-quarter earnings of $1.59 per share was well ahead of the Zacks Consensus Estimate of $1.33. Results also topped prior-year period’s earnings of $1.02 per share. The upside was driven primarily by strong annuity sales and market appreciation.   Prudential raised its guidance for the full fiscal 2009, based on its earning’s strength and current financial market conditions, including equity market levels, interest rates and credit spread. The company now expects earnings of $5.40 to $5.60 per share, elevated from the earlier range of $5.00 to $5.20 per share.   Net income for the Financial Services Businesses attributable to Prudential Financial Inc. was $1.09 billion or $2.35 per common share, compared to a net loss of $118 million 25 cents a share in the year-ago quarter. The company’s outstanding shares increased 9% year over year due to its stock offering in June.   Prudential’s ...

State Street Corporation’s (STT) third quarter operating earnings of $1.05 per share were 5 cents ahead of the Zacks Consensus Estimate. Operating results for the quarter exclude $11 million in pre-tax merger and integration costs associated with the Investors Financial Services Corp. acquisition. However, the results were down 15.3% from $1.24 per share in the prior-year quarter. On a GAAP basis, earnings for the quarter came in at $1.04 per share. This compares unfavorably with earnings of $1.09 in the year-ago quarter. The year-over-year decrease in earnings was due primarily to an increase in shares outstanding and decrease in revenue, partially offset by reduced expenses. Revenue for the quarter increased 5.4% sequentially but decreased 19.3% year-over-year to $2.8 billion. Operating revenue for the quarter was down 10.6% year-over-year to $2.3 billion. Operating expenses for the quarter decreased 13.2% year-over-year to $1.5 billion. Operating ...

Marshall & Ilsley Corp. (MI) said on Tuesday that it anticipates a third-quarter loss due primarily to a higher loan loss provision for bank holding company loans.   The company expects to report a loss of 68 cents to 70 cents per share for the quarter as its allowance for loan and lease losses as a percentage of total loans and leases is expected to rise slightly over 3%.   The firm said that it will make a loan loss provision of $390 million to $400 million for the quarter and would make a special provision of about $185 million for certain bank holding company loans.   As a result of delays in raising capital, deterioration in loan portfolios and regulatory actions against some bank holding companies, total amount of loan and lease losses for the quarter are expected to range between $575 million and $585 million.   The ...

Regional banks are not often highlighted in the Zacks #1 Rank Top Performers commentary, but nobody told First Midwest Bancorp, Inc. (FMBI). With a share price gain of approximately 10.5%, the company makes the list to start off the week.

< ?DART(15);?> FMBI is a multi-bank holding company engaged in commercial banking, trust, investment management, insurance, mortgage origination and servicing activities.

It is 1 of 3 companies from the Banks-Midwest industry on today's 224-stock Zacks #1 Rank List. The other 2 companies are Princeton National Bancorp, Inc. (PNBC) and Wintrust Financial Corporation (WTFC).

Today, the company received a brokerage upgrade to "outperform" from "perform". Volume today is at 753,000 shares, which is above the daily average of 461,000. Meanwhile, on Friday FTBI announced a debt exchange offer that will allow it to retire nearly $69 million in debt.

Earnings

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Asset manager Eaton Vance Corp.’s (EV) reported fiscal third-quarter net income of $31.2 million, a decline of 37% year-over-year as performance was affected by sluggish fee income amid weak fund inflows. Excluding a charge associated with an IPO, earnings per share came in at 28 cents, matching the Zacks Consensus Estimate. The company stated that quarterly revenue slumped 19% year over year to $228.4 million as investment advisory and administration fees declined 17% to $175.2 million. Distribution and service fees also fell 31% and 26% to $21.7 million and $29.9 million respectively. The slump in fees was caused by a decline in assets under management (AUM) to $143.7 billion, compared to $155.8 billion in the year-ago quarter as clients adopted a cautious approach towards closed-end funds. Eaton’s AUM was particularly affected by equity fund assets, which contracted 21% year over year to $52.9 billion. However, sequentially ...

National Investment Managers Inc. is a nationally-based holding company focused on retirement plan administration and investment management. The company recently announced its financial results for the quarter and six months ended June 30, 2009, reporting record quarterly revenues.

The company posted second-quarter 2009 revenues at $14.1 million, up 19.7 percent from $11.8 million posted in 2008. For the first half of 2009, the company reported revenues of $26.7 million, an increase of 29.1 percent, from $20.7 million reported for the first six months of 2008.

The company’s earnings before interest, taxes, depreciation, amortization (EBITDA) was $4.7 million for the second quarter 2009, up from $3.8 million from the same period in 2008.

Steven Ross, CEO of NIVM, said the company’s results were boosted by strategic improvements and signal its ability provide results-driven services.

“Our record performance in the second quarter and first half of 2009 was driven by continued organic

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After the market close yesterday, Lincoln National Corporation (LNC) reported its second quarter results. The company managed to report better operating results on a quarter over quarter basis, though year over year performance remained a struggle.

Earnings per share, excluding special charges, declined 35% year over year to $0.81, in line with Zacks consensus estimate and Street’s estimate of $1.25. GAAP EPS jumped 29% to $0.62. Total revenue decreased 22% year over year to $1.95 billion that missed our estimates as well as market expectations of $2.52 billion.

The decline in EPS was driven by a decline in equity markets coupled with losses on alternative investments. Also, affecting earnings were $19 million of restructuring charges relating to expense-save initiatives. Moreover, net operating income excludes $10 million of income from Lincoln UK, the sale of which is pending.

Net investment income declined to $970.6 million from $1.1 billion last year due to lower

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On July 8, KeyCorp (KEY) announced the commencement of an offer to exchange its common shares for any and all Trust Preferred Securities of KeyCorp Capital V and KeyCorp Capital VI, and any and all Enhanced Trust Preferred Securities of KeyCorp Capital VIII, KeyCorp Capital IX and KeyCorp Capital X.

KeyCorp had recently said that with the successful closure of a previously announced exchange offer, the company believes that it has fulfilled the requirement under the Supervisory Capital Assessment Program or stress test - to generate $1.8 billion of tier 1 common equity capital.

Under terms of the offer, for each Trust Preferred Security of KeyCorp Capital V, KeyCorp Capital VI, KeyCorp Capital VIII, KeyCorp Capital IX and KeyCorp Capital X (the Capital Trusts) accepted, KeyCorp will issue a number of its common shares based on an exchange ratio which will be announced on August 3.

Further, for

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NewAlliance Bancshares, Inc. (NAL) reported its 1Q09 financial results after market close yesterday. A conference call to discuss the results was held this morning.Diluted earnings for the quarter came in at $0.12 per share, four cents ahead of our estimate. An almost-stable NIM, strong organic loan originations, growth in core deposits, reduced deposit costs, continued diligent expense control and a strong capital position were the key positives for the quarter.Net interest income increased 0.4% sequentially due to an increase in interest-earning assets coupled with a decrease in the cost of interest-bearing liabilities. Further, the decline in the yield on interest-earning assets of 26 bps was more than offset by the 30 bps drop in the yield on interest-bearing liabilities. NIM was almost stable at 2.58% for the quarter.Non-interest income increased 15.9% sequentially due primarily to higher investment management, brokerage and insurance fees ...

The Working Capital Model (WCM) looks at investment performance differently, less emotionally, and without a whole lot of concern for short-term market value movements. Market value performance evaluation techniques are only used to analyze peak-to-peak market cycle movements over significant time periods.

Security market values are used for buy and sell decision-making. Working capital figures are used for asset allocation and diversification calculations. Portfolio working capital growth numbers are used to evaluate goal directed management decisions over shorter periods of time.

WCM tracking techniques help investors focus on long term growth producers like capital gains, dividends, and interest— the things that can keep the working capital line (see Part One) moving ever upward. The base income and cumulative realized capital gains lines are the most important WCM growth engines.

Please refer to the chart in Chapter 7 of The Brainwashing of the …