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Lehman Bros. 3Q jumps
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September 23, 1999: 9:18 a.m. ET
Net income soars 92% on strong investment banking, European units
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NEW YORK (CNNfn) - Lehman Brothers Holdings Inc. Thursday reported third-quarter net jumped 92 percent, topping Wall Street expectations on strong performances in its investment banking and European operations.
Lehman Brothers (LEH), the nation's No.3 securities firm, earned $290 million, or $2.20 a diluted share, in the quarter ended Aug. 31, up from $151 million, or $1.10 per diluted share, a year earlier.
A poll of analysts showed they had generally expected Lehman to report earnings of $2.01 per share, according to First Call Corp., which compiles such estimates.
Total revenue fell 20 percent to $4.8 billion. However, net revenue -- excluding interest expense -- rose 46 percent to $1.4 billion.
Lehman executives credited the firm's ability to expand into high-margin business lines. Pre-tax profit margin rose sharply to 30.8 percent from 22.3 percent a year earlier.
"The firm is well on its way to having its most profitable year ever, a clear indication that our strategy of expanding key business franchises and broadening our international presence has been successful," said Richard Fuld, Jr., Lehman's chairman and chief executive officer.
A booming stock market has powered several leading securities firms in the third quarter. The comparisons are greater, analysts said, due to a slump last year amid international turmoil in world markets that unsettled stock and bond prices.
The report from Lehman follows what analysts characterized as a stellar quarterly income report from Goldman Sachs (GS) and a strong increase in earnings at Morgan Stanley Dean Witter (MWD) earlier this week.
Shares of Lehman rose 1-15/16 to 55-14 Wednesday. 
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Lehman Brothers
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