Eaton Vance 1Q profit down 57%

Eaton Vance Corp. said Wednesday its fiscal first-quarter profit shrank by more than half as declining markets eroded the value of the money manager's investments, cutting into management fee revenue. Eaton Vance reported net income of $24.7 million, or 21 cents per share, for the three months ended Jan. 31, down 57 percent from $57.9 million, or 46 cents per share, a year ago. Investment losses, including impairment losses, reduced earnings a penny per share in the latest quarter. The performance narrowly beat the consensus forecast of analysts surveyed by Thomson Reuters, who expected a profit of 19 cents per share, on average. Analyst estimates typically exclude one-time charges and gains. But Boston-based Eaton Vance fell short of analysts' revenue forecast, Revenue fell to $209.5 million, down 28 percent from $289.8 million in the year-ago quarter. Analysts, on average, expected revenue of $212.2 million. Investment advisory and administration fees fell 24 percent to $160.5 million, reflecting a decline in assets under management to $121.9 billion as of Jan. 31 from $152.9 billion a year earlier. However, the decline in managed assets was just 1 percent compared with the end of the fiscal fourth quarter. The latest quarter's fee decline was partly offset by a 17 percent, $33.1 million decrease in operating expenses, including a 15 percent drop in compensation expenses due in part to lower bonuses and stock-based compensation. A total of $3.3 billion flowed into Eaton Vance's long-term funds and separate accounts during the first quarter. Eaton Vance shares rose 27 cents, or 1.6 percent, to $17.42 in morning trading Wednesday.