Eaton Vance Third Quarter Results Top Estimates

(RTTNews) - Investment management firm Eaton Vance Corp. (EV) reported Wednesday a profit for the third quarter more than tripled from last year, reflecting improved operating margins and revenue growth. Both adjusted earnings per share and quarterly revenues topped analysts' expectations.

"Eaton Vance again achieved record earnings in the third quarter of fiscal 2014. Although flows remain disappointing, continued development of emerging franchises and strong investment performance support improved organic growth in the coming quarters," Chairman and CEO Thomas Faust Jr. said in a statement.

Net outflows from long-term funds and separate accounts during the third quarter were $2.0 billion, compared to $8.8 billion of net inflows in the year-ago quarter.

The Boston, Massachusetts-based asset manager reported net income of $77.94 million or $0.63 per share for the third quarter, higher than $23.20 million or $0.18 per share in the prior-year quarter.

Results for the year-ago quarter primarily include a $0.28 per share loss on extinguishment of debt. Excluding items, adjusted net income for the quarter was $77.88 million or $0.63 per share, compared to $66.51 million or $0.52 per share in the year-ago quarter.

On average, 13 analysts polled by Thomson Reuters expected the company to report earnings of $0.62 per share for the quarter. Analysts estimate typically excludes one-time special items.

Eaton's revenues for the quarter grew 5 percent to $367.59 million from $350.36 million in the same quarter last year, and topped eleven Wall Street analysts' consensus estimate of $365.29 million by a whisker.

Eaton's investment advisory and administration fees increased 6 percent to $312 million, reflecting a 10 percent increase in average consolidated assets under management and lower average effective fee rates.

Meanwhile, distribution and underwriter fees declined 5 percent, and service fees edged down 1 percent from a year ago.

Eaton Vance's operating margin for the quarter improved 180 basis points to 35.7 percent from last year's 33.9 percent.

Average consolidated assets under management for the quarter grew 10 percent to $289.3 billion from the year-ago quarter.

Eaton's assets under management as at the end of the third quarter stood at $288.19 billion, up 7 percent from $268.76 billion of managed assets as of the end of the prior-year quarter, reflecting market appreciation of $19.6 billion and net outflows of $0.2 billion.

In Wednesday's regular trading session, EV is currently trading at $37.00, up $0.23 or 0.63% on a volume of 49,931 shares.