By Dave Sebastian
Eaton Vance Corp. said its profit fell for the fiscal first quarter as expenses rose -- in a period expected to be the company's last as an independent public company -- though revenue increased.
The fund manager on Wednesday posted net income attributable to Eaton Vance of $89.91 million, down from $104 million in the year-ago period. Earnings were 74 cents a share, down from 91 cents a share in the comparable quarter last year.
Adjusted earnings were 94 cents a share. Analysts polled by FactSet were expecting 89 cents a share.
Revenue rose to $488.9 million from $452.6 million. Analysts were looking for $466.8 million.
Quarterly net inflows were $20 billion, the company said.
Operating expenses rose 29% to $409.4 million, reflecting higher compensation expense, service fee expense, amortization of deferred sales commissions, fund-related expenses and other costs, the company said. The increase in compensation expense was due to $39.6 million in stock-based and other compensation costs and associated payroll taxes recognized in the first quarter in connection with the proposed $7 billion acquisition by Morgan Stanley.
Morgan Stanley's acquisition of Eaton Vance is expected to close on March 1, the companies said.
"In what we expect will be Eaton Vance's last quarterly reporting period as an independent public company, the company set new records for consolidated net inflows, consolidated ending assets under management, adjusted operating income and adjusted earnings per diluted share," Chairman and Chief Executive Thomas Faust Jr. said.
Write to Dave Sebastian at email@example.com
(END) Dow Jones Newswires
February 24, 2021 09:41 ET (14:41 GMT)Copyright (c) 2021 Dow Jones & Company, Inc.