By Everdeen Mason
Lazard Ltd. swung to a fourth-quarter profit, as the midsize
investment bank showed continued strength in its financial advisory
and asset- management businesses.
For the quarter, Lazard reported earnings of $53.2 million, or
40 cents a share, versus a year-earlier loss of $5.4 million, or 5
cents a share.
On a fully exchanged basis, the company's earnings rose to 81
cents from 61 cents a share a year ago. Fully exchanged refers to
the full conversion of all outstanding exchangeable interests held
by LAZ-MD Holdings, the entity owned by Lazard Group's current and
former managing directors, including executive officers.
Operating revenue rose 8.2% to $620.5 million.
Analysts polled by Thomson Reuters were looking for per-share
earnings of 61 cents and $558 million in revenue.
Lazard said its financial advisory business's operating revenue
on an adjusted basis climbed 1.8% to $315 million, driven by an 8%
increase in M&A and other advisory revenue.
Strategic advisory, which includes mergers and acquisitions,
sovereign and government advisory and capital markets, boosted
operating revenue 7.4% to $280.5 million.
Average assets under management totaled $238 million, up 14%
from a year ago and 4% from the previous quarter.
"In Financial Advisory, we are poised to benefit from an upturn
in the M&A market," Chief Executive Kenneth Jacobs said. "In
Asset Management, our continued strong pattern of performance and
record level of assets under management position us well for
further organic growth."
Compensation expense fell 17% to $367.9 million.
The company's shares closed on Tuesday at $42.99 and were
inactive in Wednesday's premarket. The stock has risen 20% in the
past 12 months.
Write to Everdeen Mason at everdeen.mason@wsj.com
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