Piper Jaffray Cos." (PJC) first-quarter earnings soared as the
financial firm trimmed expenses, helping to mask a drop in net
revenue.
The Minneapolis, Minn., investment bank--like its larger Wall
Street peers--is facing an uncertain future following the financial
crisis, as a series of new regulatory changes could alter the
business of everything from trading and derivatives to bank-capital
requirements. Piper Jaffray and its peers will face more pressure
to outline how they will boost profits in the post-crisis era.
Investment-banking revenue fell 16% to $40.4 million, while the
asset-management arm's revenue was up 10% at $18.2 million. Revenue
at the firm's brokerage business fell 1.9% to $43.3 million.
Overall, Piper Jaffray reported a profit of $10.1 million, or 57
cents a share, up from $2.9 million, or 15 cents a share, a year
ago. Earnings from continuing operations were 60 cents, up from 33
cents.
Net revenue sank 3.4% to $109.5 million.
Analysts were expecting earnings from continuing operations of
50 cents a share, according to a poll conducted by Thomson
Reuters.
Total non-interest expenses declined 7% at $91.4 million.
Shares closed Tuesday at $32.62 and were inactive premarket. The
stock has risen 1.5% so far this year.
Write to Ben Fox Rubin at ben.rubin@dowjones.com.
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