Lazard revenues grow 4.9% in first quarter

Lazard Ltd. Today posted a 4.9% increase in first quarter revenues on growing asset management fee income and record inflows, but fell short of analysts expectations. The New York-based financial advisory and asset management firm said that net income edged up slightly to $55 million, or 47 cents per share, from $52.5 million, or 51 cents per share, during the first quarter of 2006. Revenues increased 11% to $388.2 million, compared to $351.1 million during the year-ago period. Analysts surveyed by Reuters Estimates forecast earnings of 62 cents per share. The strong revenue growth was fueled by a 23% increase in asset management operating revenue to $146.9 million, compared to $119.2 million in the year-ago period. Asset management fees increased 26% to a record $130.6 billion from $103.8 billion during the first quarter of 2006. Assets under management for the quarter grew 13% to $124.9 billion due to record net inflows of $11.6 billion during the quarter. "We are actively pursuing expanding financial advisory by geography and adjacent business through acquisitions, new investment products, making new hires of individuals and teams, and upgrading our current platforms," said Bruce Wasserstein, chairman and chief executive of Lazard Ltd., according to a statement.