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Bear Stearns 1Q profit dives
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October 14, 1998: 10:09 a.m. ET
Firm reports 60 percent decline in earnings, misses estimates by 3 cents
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NEW YORK (CNNfn) - Bear Stearns Cos. Inc. is the latest investment bank to report dismal quarterly earnings, but for once the Asia crisis isn't at fault.
The investment bank posted its worst quarterly earnings in nearly three years, with fiscal first-quarter profit down 60 percent at $64.1 million, or 40 cents per share.
Analysts had forecast earnings of 43 cents a share.
A year ago, Bear Stearns' net income was $161.6 million, or $1.11 a share.
Revenue for the quarter ended Sept. 25 totaled $740.9 million, down from last year's $996.1 million.
The company blamed a drop in bond trading revenues and slack fees from underwriting debt and stock offerings.
The firm's revenues from principal transactions fell almost 50 percent to $197.1 million in the quarter because high-yield bonds declined in value. Investment banking revenue dropped 44 percent drop in the quarter to $121.8 million as investors shied away from debt and stock offerings, the company said.
But the company said volatile emerging markets had little adverse effect on earnings, as the bank's exposure and losses to these markets was "not significant."
Shares of Bear Stearns (BSC) were down 7/8 to 31-15/16 Wednesday morning on the New York Stock Exchange. 
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Bear Stearns
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