Eaton Vance Profit Climbs

Interest income rises.
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Eaton Vance

(EV) - Get Report

said second-quarter earnings rose 22.8% from the year-ago period, helped by higher interest income and advising fees.

The company earned $39.9 million, or 29 cents a share, in the quarter, compared with $32.5 million, or 23 cents a share, a year ago. Second-quarter result includes non-cash amortization charge of $8.9 million, or 4 cents a share, related to the termination of contracts at its Fox Asset Management subsidiary. Analysts polled by Thomson First Call were expecting earnings of $42.6 million, or 32 cents a share in the most recent quarter.

Second-quarter revenue rose 15.9% from a year-ago period to $211.5 million as against the analysts' estimate of 210.7 million.

Second-quarter operating income rose 10.6% from a year ago to $60.6 million while operating margin dropped 137 basis points to 28.7%.

By segment, second-quarter revenue from investment adviser and administration fees rose 20% from a year-ago period to $145.3 million and in distribution and underwriter fees it increased 4% to $35.1 million. Revenue from service fees rose 17% to $29.3 million. However, revenue from other services segment fell 20% to $1.8 million.

Second-quarter interest income jumped 91% to $2 million and assets under management rose 20% to $118.8 billion from a year ago.

Shares rose 17 cents to $26.47.

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