BOSTON (Reuters) - Asset manager Eaton Vance Corp
reported quarterly results Wednesday that fell short
of analysts' estimates, and its shares fell more than 4
Eaton Vance said that net income for its fiscal third
quarter, ended July 31, rose to $41.8 million, or 34 cents per
share, driven by higher fees. That compared with $31.2 million,
or 25 cents per share, a year earlier.
Analysts on average had expected the company to earn 38
cents a share, according to Thomson Reuters I/B/E/S, on revenue
of $284.9 million. Revenue came in below that target at $273.1
In a note to investors Ticonderoga Securities analyst
Douglas Sipkin said the company's net inflows of $4.8 billion
for the quarter also came in below his estimate of $5.2
The net inflows of $4.8 billion for the July quarter were
up from $3.9 billion a year earlier, but down from flows of
$5.3 billion in the three months ended April 30.
"The miss on both EPS and flows should weigh on shares
today," he wrote.
On a conference call with analysts, Eaton Vance executives
described a new fund they plan to introduce in the fast-growing
global funds category that should help increase inflows.
But they also acknowledged profit pressures during the
quarter such as a shift of flows into lower-profit bond funds,
market declines and the costs of launching a new closed-end
Not all analysts may have factored those costs into their
estimates, said company Vice President Dan Cataldo in an
interview after the call.
"Put all those things together and the consensus would have
been closer to what we reported," he said.
Shares of Eaton Vance had fallen 5 percent for the year
through Tuesday, compared with a decline of 14 percent for a
Dow Jones index of U.S. asset managers. Net inflows to its
funds in past quarters have helped the stock.
In Wednesday morning trading, the stock was down $1.21, or
4.1 percent, at $28.40.
(Reporting by Ross Kerber; Editing by Lisa Von Ahn, Gerald E.
McCormick and Steve Orlofsky)