Financial Sector Update for 05/23/2018: AEL,CM,CM.TO,LTS,QIWI

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Top Financial Stocks

JPM -0.80%

BAC -1.75%

WFC +1.34%

C -1.51%

USB -0.62%

Financial stocks still were mostly lower today, with the NYSE Financial Sector Index falling more than 0.7% while financial companies in the S&P 500 Index were posting a nearly 0.9% retreat. The Philadelphia Housing Sector Index was hanging on to a more than 0.6% gain.

Among financial stocks moving on news:

+ American Equity Investment Life Holding Company ( AEL ) rose sharply again on Wednesday, climbing almost 10% and pulling to within 1% of its best-ever share price of $35.79 apiece, after the life insurance company confirmed market speculation it was exploring a potential sale. In a statement earlier Wednesday, American Equity said it was "in preliminary discussions regarding a potential transaction," later saying it does not expect to make any additional public statements unless it strikes a definitive agreement for a deal. American Equity shares on Tuesday jumped over 11% over their prior closing price after Reuters reported the company was pursuing a possible sale.

In other sector news:

- Ladenburg Thalmann Financial Services ( LTS ) has turned lower on Wednesday, dropping as much as 1% after earlier rising more than 1% and the financial services company pricing a $40 million public offering of 7.0% senior notes due 2028 at par. The company also issued a 30-day option to underwriters to buy up to $6 million more of the notes to cover potential overallotments. The deal is slated to close on May 30 when the notes will begin to trade on the American Stock Exchange under the LTSF ticker symbol.

- CIBC (CM,CM.TO) dropped to a 2% decline soon after Wednesday's opening bell despite reporting non-GAAP fiscal Q2 earnings and revenue beating Wall Street and Bay Street expectations. Excluding one-time items, the Canadian financial services giant earned CAD2.95 per share, or about $2.29 per share, during the three months ended April 30, improving on a CAD2.64 adjusted profit during the same period last year and topping the Capital IQ consensus by CAD0.17 per share. Revenue rose to CAD4.41 billion from CAD3.83 billion during the year-ago period, also exceeding the CAD4.38 billion analyst mean.

- QIWI ( QIWI ) dropped over 8% Wednesday morning, reversing a small gain that soon after the opening bell that followed it reporting Q1 financial results exceeding Wall Street estimates and above-consensus FY18 revenue. Excluding one-time items, the company earned RUB17.62 per share, or about $0.31 per share, during the three months ended March 31, down from adjusted net income of RUB20.76 per share during the year-ago period but still beating the Capital IQ consensus expecting the company to earn RUB16.51 per share. Revenue rose to RUB 4.1 billion from RUB2.91 billion last year, also topping the RUB3.83 billion Street view. Looking forward, QIWI is projecting a 10% to 15% increase in its adjusted FY18 earnings and also sees revenue growing between 15% to 20% over FY17 levels. The Street is looking for an 11% rise in non-GAAP earning to $1.28 per share and a 13% rise in revenue to $258.3 million.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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This article appears in: Investing , Banking and loans
Referenced Symbols: AEL , LTS , QIWI , CM

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