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Trading firm



reported a second-quarter loss, stemming mainly from a charge related to repurchase of some of the company's debt.

The poor earnings continue a bad streak for the

New York Stock Exchange

specialist firm, which earlier this year paid a $63.5 million fine to regulators to settle allegations of trading violations.

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In the quarter, LaBranche lost $25.6 million, or 43 cents a share, compared with a profit of $10.6 million, or 18 cents a share, a year ago. The loss includes a $56 million charge due to the early debt buyback.

On an operating basis, which excluded the charge, LaBranche said it had $1.2 million in operating income, or 2 cents a share. But using that earnings formula, the firm still fell 2 cents short of the Thomson First Call consensus estimate.

Total revenue in the quarter rose nearly 4% to $90.7 million. But the latest quarter reflected a $24.6 million appreciation in the value of LaBranche's investment in Lava Trading, a company that's being acquired by


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Revenue from trading commissions fell slightly from a year ago to $23.7 million. Revenues from principal transactions, or stock trades made for the firm's own benefit, fell 32% to $40.4 million.

Total expenses more than doubled to $135.9 million, largely due to the debt repurchases in the quarter.