Financial Stocks Generating Volume Activity After Earnings

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NYSE Euronext (NYSE:NYX) reported its results for the fourth quarter. NYSE Euronext provides securities listing, trading, market data products, and software and technology services. Net income for NYSE Euronext fell to $110 million (43 cents per share) vs. $135 million (51 cents per share) a year earlier. This is a decline of 18.5% from the year earlier quarter. Revenue rose 0.9% to $1.05 billion from the year earlier quarter. NYSE Euronext reported adjusted net income of 50 cents per share. By that measure, the company beat the mean estimate of 49 cents per share. It beat the average revenue estimate of $626.5 million.

“Last week, the European Commission formally issued a prohibition against our merger with Deutsche Boerse and we have mutually agreed to terminate our business combination agreement,” said Duncan L. Niederauer, CEO, NYSE Euronext. “We are extremely disappointed with the decision, and as I have stated, we believe that it stems from a fundamentally different view of the competitive dynamics in the global markets.”

Competitors to Watch: IntercontinentalExchange, Inc. (NYSE:ICE), NASDAQ OMX Group, Inc. (NASDAQ:NDAQ), CME Group Inc. (NASDAQ:CME), CBOE Holdings, Inc (NASDAQ:CBOE), Deutsche Boerse AG (DB1), MarketAxess Holdings Inc. (NASDAQ:MKTX), Forestar Group Inc. (NYSE:FOR), Knight Capital Group Inc. (NYSE:KCG), and London Stock Exchange Group Plc (NYSE:LSE).

AllianceBernstein Holding L.P. (NYSE:AB) swung to a loss in the fourth quarter, missing analysts’ forecast. Reported a loss of $199.5 million ($1.97 per diluted share) in the quarter. The asset management company had net income of $42.9 million or 42 cents per share in the year earlier quarter. Revenue fell 19.7% to $625 million from the year earlier quarter. AllianceBernstein Holding L.P. reported adjusted net income of 7 cents per share. By that measure, the company fell short of mean estimate of 21 cents per share. It fell short of the average revenue estimate of $650.4 million.

“The fourth quarter proved to be a difficult finish to a challenging 2011 for our firm,” said Peter S. Kraus, Chairman and Chief Executive Officer. “The year was characterized by global market volatility, which caused risk aversion on the part of equity investors. While markets partially rebounded from prior lows in the fourth quarter, trading activity declined sharply. With ongoing investment underperformance in our largest equity services, we experienced further client redemptions, and ended 2011 with lower assets and a decline in revenues.”

Competitors to Watch: UBS AG (NYSE:UBS), Legg Mason, Inc. (NYSE:LM), Westwood Hldgs. Group, Inc. (NYSE:WHG), Artio Global Investors Inc. (NYSE:ART), Diamond Hill Investment Group, Inc. (NASDAQ:DHIL), Epoch Holding Corp (NASDAQ:EPHC), Sanders Morris Harris Group (NASDAQ:SMHG), Gamco Investors Inc. (NYSE:GBL), Pzena Investment Management, Inc. (NYSE:PZN), Citigroup (NYSE:C), Bank of America (NYSE:BAC), JP Morgan (NYSE:JPM), Morgan Stanley (NYSE:MS), Goldman Sachs (NYSE:GS), Wells Fargo (NYSE:WFC) and Franklin Resources, Inc. (NYSE:BEN).

To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com

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