Lazard Posts Disappointing Results
21 April 2016 - 10:50PM
Dow Jones News
Lazard Ltd. posted disappointing first-quarter earnings and
revenue as the markets' rough start to the year sidelined corporate
deal makers.
Chief Executive Kenneth Jacobs sought to assure investors
Thursday that activity was picking back up as markets have
stabilized. "We are advising clients on a record level of
transactions in 2016, most of which we expect to be completed in
the second half of the year," he said.
The Bermuda-based firm also lifted its quarterly dividend 9% to
38 cents a share and increased its share-buyback program to $300
million.
In all, Lazard reported a profit of $66.8 million, up from $56
million a year earlier. On a per-share basis, earnings rose to 50
cents from 42 cents. But excluding one-time items, the profit a
year earlier was 77 cents a share.
Revenue slid 14% to $510.1 million. Analysts surveyed by Thomson
Reuters projected 65 cents in per-share profit and $537.8 million
in revenue.
In Lazard's financial-advisory business, which makes up just
over half of its overall revenue, sales declined 12% from a year
earlier, when deal-making was booming at a record clip.
Rocky markets at the start of the year also hit assets under
management, pushing revenue in Lazard's asset-management business
lower by 12%. The company reported $191 billion in assets under
management as of March 31, down 4% from a year earlier and up 2%
from the fourth quarter.
Lazard brought in $226 million in management fees, down 10% from
last year's first quarter.
Lazard isn't alone in reporting lower results because of adverse
market conditions. Private-equity firm Blackstone Group LP on
Thursday said earnings were more than halved across all of its
business lines, and banks including J.P. Morgan Chase & Co. and
Morgan Stanley attributed lower profits to market swoons and lower
client activity.
Write to Lisa Beilfuss at lisa.beilfuss@wsj.com
(END) Dow Jones Newswires
April 21, 2016 08:35 ET (12:35 GMT)
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