Asset manager Eaton Vance Corp. said Wednesday its profit for its fiscal third quarter fell 37 percent as it recorded lower fund inflows than a year ago.
Asset manager Eaton Vance Corp. said Wednesday its profit for its fiscal third quarter fell 37 percent as it recorded lower fund inflows than a year ago.
The Boston-based company reported net income of $31.2 million, or 26 cents per share, compared with $49.6 million, or 40 cents per share, in the same period a year ago.
Revenue fell 19 percent to $228.4 million from $282.8 million.
The company said earnings were reduced by $3.3 million, or 2 cents per share, by expenses from an initial public offering in May.
Analysts surveyed by Thomson Reuters expected profit of 27 cents per share on revenue of $225.1 million for the quarter ended July 31. Analyst estimates typically exclude one-time items.
Shares fell $1.62, or 5.4 percent, to $28.50 in morning trading. The stock has ranged from $11.86 to $44 over the past year.
Net inflows into long-term funds were $3.9 billion compared with $5.8 billion a year ago. Howev er, the inflows significantly increased from the $800 million reported in the second quarter this year, the company said.
Assets under management on July 31 were $143.7 billion, down from $155.8 billion recorded in the year-ago period. They have increased $16.5 billion, or 13 percent, from the $127.2 billion of managed assets as of April 30, the company said.
"While our earnings remain below prior year's results, the sharp uptick in managed assets bodes well for future recovery," CEO Thomas E. Faust Jr. said in a statement.
Distribution and underwriter fees fell 31 percent to $21.7 million and service fee revenue fell 26 percent to $29.9 million.
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