Big brokers beat Street
|
|
April 13, 1999: 8:58 a.m. ET
Merrill, PaineWebber cite higher commissions, fees for strong quarter
|
NEW YORK (CNNfn) - Merrill Lynch and PaineWebber Group Tuesday reported first-quarter profits that beat Wall Street forecasts as the stock market's rally fueled record earnings at two of the nation's biggest brokers.
Merrill Lynch, the nation's largest brokerage, said net earnings rose 18 percent while No. 5 PaineWebber said profits jumped 33 percent. The firms cited strong commissions and other fees from trading for customers as well as higher income from trading for their own accounts.
New York-based Merrill said net income rose to $609 million, or $1.44 a diluted share, in the quarter, from $514 million, or $1.26 a share, a year earlier. Analysts had forecast results of $1.23 a diluted share, according to First Call, which tracks analysts' estimates.
Merrill said the results beat its previous record profit of $549 million set in the 1998 second quarter. Commissions rose 7 percent while income from its own trades soared 23 percent, more than offsetting a drop in interest and dividend income, it said. Total net revenue grew 11 percent to $5.27 billion.
PaineWebber cited a 17 percent rise in commissions and growth of 13 percent in income from its own trading for the best quarter in its 119-year history.
The New York-based broker said net profit jumped to $161 million, or $1.01 a diluted share, from $121 million, or 77 cents a share, a year earlier. Analysts had forecast profit of 73 cents a share for the latest quarter, according to First Call.
Net revenue rose 18 percent to $1.3 billion from $1.1 billion. The firm also cited online technology that allowed it to cater to current customers and attract new ones.
Merrill Lynch stock rose 3/4 to 100 11/16 Tuesday while PaineWebber added 4 to 47 9/16.
|
|
|
|
|
|