BOSTON: Shares of Eaton Vance Corp. EV fell more than 4% following the release of its fourth-quarter fiscal 2015 (ended Oct 31) results before the market opened yesterday. Adjusted earnings of 53 cents per share lagged the Zacks Consensus Estimate of 58 cents. Also, earnings were down 22% year over year.
Eaton Vance Corporation (EV) – Earnings Surprise | FindTheCompany
For fiscal 2015, adjusted earnings were $2.29 per share, missing the Zacks Consensus Estimate of $2.34. Moreover, the figure was down 8% year over year.
Lower-than-expected quarterly results reflected a strained top line and elevated costs. However, growth in assets under management (AUM) and robust inflows were the strong factors.
Eaton Vance’s net income attributable to shareholders for the reported quarter plunged 22% year over year to $62.2 million. In fiscal 2015, net income was $230.3 million, down 24% year over year.
Performance in Detail
Total revenue for the quarter amounted to $341.5 million, down 7% year over year. The decline was due to a fall in all revenue components except other revenues. Further, the figure missed the Zacks Consensus Estimate of $354 million.
For fiscal 2015, total revenue declined 3% year over year to $1,403.6 million. Additionally, it missed the Zacks Consensus Estimate of $1,431 million.
Total expenses climbed 1% year over year to $230.5 million in the reported quarter. The rise was triggered by an increase in compensation and related costs along with other expenses. However, these were partly mitigated by a reduction in distribution expense, amortization of deferred sales commissions, fund-related expenses and service fee expenses.
Total operating income slumped 20% year over year to $110.9 million.
As of Oct 31, 2015, Eaton Vance had $465.6 million in cash and cash investments compared with $385.2 million as of Oct 31, 2014. Further, the company had no borrowings outstanding against its new $300-million credit facility.
Eaton Vance’s consolidated AUM grew 5% year over year to $311.4 billion, reflecting net inflows of $16.7 billion and market decline of $3.1 billion.
