reported a 40% rise quarterly profits, but the broker's results fell short of analyst expectations.
The St. Louis-based broker earned $66 million, or 86 cents a share in its second quarter, compared with $47 million, or 61 cents a share, in the year-ago period. Revenue rose 6% to $713 million in the quarter ended Aug. 31.
But the results fell short of Wall Street expectations. Analysts, as surveyed by Thomson Financial, were looking for earnings of 87 cents a share on revenue of $734 million.
Shares of A.G. Edwards, which closed Wednesday at $55.71, were poised to open lower, on the basis of premarket trading.
The disappointing results from A.G. Edwards break a streak of better-than-reported earnings from brokerages with quarters that ended in July. Over the past two weeks,
all defied analyst predictions by posting better-than-expected earnings.
In the quarter, A.G. Edwards recorded a big 18% rise in revenue from asset-management fees to $305 million. But commissions on customer trades fell 5% to $238 million. Investment-banking revenue also fell 16% to $56.7 million.
The broker did a good job keeping a lid on expenses. Compared with a year ago, non-interest expenses rose just 1.8% to $608.9 million.