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Financial Stocks Posting Modest Gains; CIT Down 3% Despite Q3 EPS Beat, Dividend Resumption

Top Financial Stocks

JPM -0.22%

BAC -0.28%

WFC +0.48%

C -0.13%

USB +0.15%

Financial stocks are higher this afternoon, with the NYSE Financial Sector Index adding 0.3% while the S&P Financial 100 Index is ahead about 0.2%.

In company news, CIT Group ( CIT ) is down nearly 3% at $49.49 a share after the specialty lender got a little lift earlier from a return to profitability in Q3 as well as plans to resume its quarterly dividend.

CIT earned $0.99 per share during the three months ended Sept. 30, reversing a $1.49 per share loss during the year-ago period and beating the FactSet consensus call by $0.05 per share.

But Oppenheimer analyst Chris Kotowski was not particularly impressed with the apparent earning beat, writing today that CIT's Q3 results revealed little growth over the prior quarter. He pegged the company's EPS at $0.79 after subtracting out a $48-million asset impairment as well as a $34-million gain on asset sales, explaining the results were "flattish compared with the $0.78 from the prior quarter, which we view as somewhat disappointing."

The company last night also disclosed plans to resume its quarterly dividend, paying $0.10 per share on Nov. 29 to shareholders of record on Nov. 15.

In other sector news,

(+) TRV, (+0.1%) Giving back most of its early gains that followed the insurer and Dow component's earning $2.35 per share during Q3, beating Street estimates by $0.28. The company also announced a $5-bln increase to its stock buyback program.

(-) DFS, (-3.2%) Q3 profit of $1.20 per share comes up $0.01 short of estimates, with the credit card issuer's results hurt by an increase in money reserved to cover defaults.

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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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