Bank of America, BlackRock and Morgan Stanley Shares in Trading Focus After Earnings

Bank of America Corporation (NYSE:BAC) reported its results for the fourth quarter. Reported a profit of $1.99 billion (15 cents per diluted share) in the quarter. The bank had a net loss of $1.24 billion or a loss of 16 cents per share in the year earlier quarter. Revenue was $25.1 billion last quarter. BAC fell short of the mean analyst estimate of 23 cents per share. It fell short of the average revenue estimate of $24.08 billion.

“We enter 2012 stronger and more efficient after two years of simplifying and streamlining our company,” said Chief Executive Officer Brian Moynihan. “We built our capital ratios to record levels during 2011 on the strength of our core businesses and by shedding those that are not core to serving customers and clients. I am proud of our team and their ability to serve our customers well while transforming the company.”

Competitors to Watch: Citigroup Inc. (NYSE:C), Wells Fargo & Company (NYSE:WFC), JPMorgan Chase & Co. (NYSE:JPM), U.S. Bancorp (NYSE:USB), Goldman Sachs Group, Inc. (NYSE:GS), Barclays PLC (NYSE:BCS), Morgan Stanley (NYSE:MS), PNC Financial Services (NYSE:PNC), KeyCorp (NYSE:KEY), and American Express Company (NYSE:AXP).

BlackRock Inc. (NYSE:BLK) reported its results for the fourth quarter. Net income for the investment brokerage fell to $555 million ($3.05 per share) vs. $657 million ($3.35 per share) a year earlier. This is a decline of 15.5% from the year earlier quarter. Revenue was $2.23 billion last quarter. BLK reported adjusted net income of $3.06 per share. By that measure, the company beat the mean estimate of $3.01 per share. Analysts were expecting revenue of $2.24 billion.

“We finished 2011 with solid annual revenue and earnings growth despite challenging market conditions, particularly in the second half of the year,” said Laurence D. Fink, Chairman and CEO of BlackRock. “Our results reinforce the underlying strength and momentum of our diversified client-focused model. Our mix of businesses, together with unparalleled risk management capabilities and a sharp focus on execution, have allowed us to deliver strong results through highly challenging market cycles. This momentum was reflected in the fourth quarter as we generated net inflows of $23.8 billion in long term net new business. In addition, with the investments made over the course of 2011, we remain well positioned to execute against key themes driving our industry in the coming years.”
Competitors to Watch: Morgan Stanley (NYSE:MS), T. Rowe Price Group, Inc. (NASDAQ:TROW), American Intl. Group, Inc. (NYSE:AIG), Barclays PLC (NYSE:BCS), Bank of America Corp. (NYSE:BAC), Goldman Sachs Group, Inc. (NYSE:GS), Invesco Ltd. (NYSE:IVZ), UBS AG (NYSE:UBS), Affiliated Managers Group, Inc. (NYSE:AMG), and Franklin Resources, Inc. (NYSE:BEN).
Morgan Stanley (NYSE:MS) dropped to a fourth quarter loss, but results topped expectations. Reported a loss of $227 million (14 cents per diluted share) in the quarter. The investment brokerage had net income of $871 million or 44 cents per share in the year earlier quarter. Revenue was $5.7 billion last quarter. MS beat the mean analyst estimate of a loss of 58 cents per share. It beat the average revenue estimate of $5.57 billion.

James P. Gorman, Chairman and Chief Executive Officer, said, “For the past year, Morgan Stanley has made enormous progress by addressing a number of outstanding strategic and legacy issues. These included the conversion of MUFG’s preferred investment into common stock and the settlement with MBIA. Importantly, we also achieved market share gains across our institutional businesses, as well as significant net flows into our Global Wealth Management and Asset Management platforms. We ended the year in better shape than where we started and we are well positioned to deliver improved returns to shareholders in 2012 and beyond.”

Competitors to Watch: Goldman Sachs Group, Inc. (NYSE:GS), Citigroup Inc. (NYSE:C), Bank of America Corp. (NYSE:BAC), JPMorgan Chase & Co. (NYSE:JPM), Deutsche Bank AG (NYSE:DB), UBS AG (NYSE:UBS), Mitsubishi UFJ Financial Group Inc (NYSE:MTU), Piper Jaffray Companies (NYSE:PJC), Jefferies Group, Inc. (NYSE:JEF), and General Electric Company (NYSE:GE).