Updated from 8:54 a.m. ESTLehman Brothers ( LEH) became the second major brokerage in as many days to surpass Wall Street estimates Wednesday, as first-quarter earnings rose 24% from a year ago. The news follows a record quarter from Goldman Sachs ( GS), which posted even bigger upside in a report Tuesday. In the latest quarter, Lehman Brothers earned $1.1 billion, or $3.66 a share, up from $875 million, or $2.91 a share, a year ago. The latest period had a gain of 16 cents a share. Total revenues were $4.46 billion, up 17% from a year ago. Analysts surveyed by Thomson Financial were expecting Lehman Brothers to earn $3.17 a share on revenue of $4.17 billion. As was the case at Goldman, Lehman saw improvements across its business categories. In its biggest segment, capital markets, revenue rose 13% to a $3 billion, reflecting record revenue from stock and bond trading. Within the segment, equity revenue rose 52% to $944 million, while fixed-income trading rose 2% to $2.1 billion in the first quarter. In investment banking, revenue rose 22% to $835 million, driven by record debt origination, solid equity origination and strong advisory revenue. Investment management revenue rose 33% to a record $580 million, driven by record asset management revenue of $368 million, "with robust inflows into mutual funds, private asset management and institutional separate accounts." Still, a day after Goldman's report, Lehman's had "a tough act to follow," according to Susan Roth Katzke at Credit Suisse. Shares in early trading fell $1.53, or 1.05%, to $143.77. "These were very solid results, with records in every business segment and region, just not in the same league as the blow-out results delivered yesterday by Goldman," wrote Daniel Harris, an analyst at J.P. Morgan, in a report. "Keep in mind, matching Goldman Sachs' outperformance was unlikely, in our view, given Lehman's lack of meaningful exposure to commodities and currency trading and much lower exposure to alternative assets." Lehman said on the call that it was interested in beefing up some of these asset classes, including the energy trading platform. Equity capital markets trading outshone all other groups at Lehman last quarter. Equity trading, which at one time seemed to be a slow growth area, has picked up as investment banks develop equity-linked derivatives that give investors new ways to bet on stocks. Lehman has been an innovator in some of these products, including its new preferred credit derivative hybrid swap. Lehman said on the conference call that the build-out of the derivatives platform over the last few quarters has helped the equity capital markets business. Clients continue to move into the convertible equity-linked trades, while the appetite for straight debt products declines. Merger arbitrage in the equity business was also helped by the merger activity in the market during the quarter.