Eaton Vance 1Q Profit Falls
February 24 2021 - 09:56AM
Dow Jones News
By Dave Sebastian
Eaton Vance Corp. said its profit fell for the fiscal first
quarter as expenses rose -- in a period expected to be the
company's last as an independent public company -- though revenue
increased.
The fund manager on Wednesday posted net income attributable to
Eaton Vance of $89.91 million, down from $104 million in the
year-ago period. Earnings were 74 cents a share, down from 91 cents
a share in the comparable quarter last year.
Adjusted earnings were 94 cents a share. Analysts polled by
FactSet were expecting 89 cents a share.
Revenue rose to $488.9 million from $452.6 million. Analysts
were looking for $466.8 million.
Quarterly net inflows were $20 billion, the company said.
Operating expenses rose 29% to $409.4 million, reflecting higher
compensation expense, service fee expense, amortization of deferred
sales commissions, fund-related expenses and other costs, the
company said. The increase in compensation expense was due to $39.6
million in stock-based and other compensation costs and associated
payroll taxes recognized in the first quarter in connection with
the proposed $7 billion acquisition by Morgan Stanley.
Morgan Stanley's acquisition of Eaton Vance is expected to close
on March 1, the companies said.
"In what we expect will be Eaton Vance's last quarterly
reporting period as an independent public company, the company set
new records for consolidated net inflows, consolidated ending
assets under management, adjusted operating income and adjusted
earnings per diluted share," Chairman and Chief Executive Thomas
Faust Jr. said.
Write to Dave Sebastian at dave.sebastian@wsj.com
(END) Dow Jones Newswires
February 24, 2021 09:41 ET (14:41 GMT)
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