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Key Predictions for Q3 Earnings Reports of ETFC, BX, SEIC

The performance of the investment management/brokerage industry (part of the broader Finance sector) has been decent over the last several quarters. Moreover, rising interest rates continue to benefit the industry. Also, majority of the investment managers have stopped waiving off their fees as interest rates gradually improve. This should further aid top-line growth.

However, the recently concluded quarter has not seen much volatility. In fact, muted volatility might lead to low capital markets business. Because of low volatility in both bond and equity markets, trading revenues are also expected to decrease. Moreover, investment banking fees are anticipated to witness muted growth.

Per our latest Earnings Preview , overall earnings for the investment management/brokerage industry in the quarter are expected to be down 3.7% year over year. This compares unfavorably with the prior-quarter growth of 8.6%.

Now, let's take a look at what can be expected from The Blackstone Group L.P. BX , E*TRADE Financial Corporation ETFC and SEI Investments Company SEIC , which are expected to release third-quarter 2017 results tomorrow.

Blackstone is expected to witness an improvement in its fee-earning assets under management (AUM) and total AUM, supported by its impressive fund-raising ability. The company's Zacks Consensus Estimate for AUM of $378 billion reflects a 1.9% improvement sequentially.

Further, the Zacks Consensus Estimate for sales is $1.49 billion, which reflects an improvement of 4.2% from the year-ago quarter. The Zacks Consensus Estimate for earnings is 57 cents for the to-be-reported quarter.

However, expenses are likely to increase given the company's well-performing funds that require more headcount.

Blackstone currently carries a Zacks Rank #3 (Hold). (Read more: Why Earnings Beat is Less Likely for Blackstone in Q3? )

The Blackstone Group L.P. Price and EPS Surprise

The Blackstone Group L.P. Price and EPS Surprise | The Blackstone Group L.P. Quote

E*TRADE Financial is anticipated to witness a decline in trading revenues in the to-be-reported quarter due to low volatility in the bond and equity markets. However, continued momentum in its investment banking business is likely to support top line.

Moreover, the Zacks Consensus Estimate for sales is projected to be $596.3 million, up 22.7% year over year.

The company's Zacks Consensus Estimate for earnings of 51 cents is likely to remain flat on a year-over-year basis.

The stock currently carries a Zacks Rank #2 (Buy). (Read more: What's in Store for E*TRADE in Q3 Earnings Report? )

E*TRADE Financial Corporation Price and EPS Surprise

E*TRADE Financial Corporation Price and EPS Surprise | E*TRADE Financial Corporation Quote

The earnings of SEI Investments are projected to record year-over-year growth in the third quarter. Its Zacks Consensus Estimate for earnings of 57 cents reflects an increase of 8.2% from the prior-year quarter.

Also, the Zacks Consensus Estimate for sales is $385.8 million, which is expected to grow 8.8% year over year.

Notably, according to our quantitative model, chances of SEI Investments beating the Zacks Consensus Estimate in the third quarter are high. This is because it has the right combination of the two key ingredients - positive Earnings ESP and a Zacks Rank #3 or better - to increase the odds of an earnings beat.

You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter .

The Earnings ESP of SEI Investments is +0.29% and it carries a Zacks Rank #3. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .

SEI Investments Company Price and EPS Surprise

SEI Investments Company Price and EPS Surprise | SEI Investments Company Quote

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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.


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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