Lehman trumps estimates
|
|
June 16, 2000: 9:52 a.m. ET
Second-highest quarterly earnings attributed to overseas activities
|
NEW YORK (CNNfn) - Lehman Brothers Holdings Inc. Friday reported fiscal second-quarter earnings that trumped Wall Street estimates and were the second-highest the brokerage has ever posted.
Lehman attributed the performance to global equity sales, trading and origination activities - especially its European and Asian franchises -- saying about 49 percent of its total revenue was generated outside the U.S., a record for the brokerage.
Lehman (LEH: Research, Estimates), the fourth-largest broker in the U.S., reported net income of $378 million, or $2.78 a diluted share, for the quarter ended May 31, up from $330 million, or $2.09 a share, in the year-earlier period.
First Call, which polls Wall Street analysts for their estimates of company earnings, expected Lehman to earn $2.49 a share.
Lehman's performance continues a trend of unexpectedly strong results for brokers in 2000. In the first quarter, online and traditional brokers benefited from a bull market. But Lehman and Bear Stearns (BSC: Research, Estimates), among the first brokers to report second-quarter results, have continued to beat the Street despite a sluggish stock market. Both have attributed their success to the resilience of their business models.
"Given the less-than-favorable market environment, posting our second-best quarter ever underscores the broad-based strength and diversity of the firm's franchise businesses, and our continued success in building our high- margin activities," CEO Richard Fuld Jr. said.
Nevertheless, Lehman's second-quarter results fell far short of its robust first-quarter earnings of $541 million, or $3.69 a share - the best profit in Lehman's history - hinting that market conditions have tempered the firm's earnings.
Lehman's second-quarter revenue was about $1.8 billion, an increase of 21 percent from $1.5 billion in the year-earlier period.
Lehman stock was unchanged early Thursday at 89-1/2.
|
|
|
|
|
|