Lazard Posts Disappointing Results

Lazard Ltd. posted disappointing first-quarter earnings and revenue as the markets' rough start to the year sidelined corporate deal makers.

Chief Executive Kenneth Jacobs sought to assure investors Thursday that activity was picking back up as markets have stabilized. "We are advising clients on a record level of transactions in 2016, most of which we expect to be completed in the second half of the year," he said.

The Bermuda-based firm also lifted its quarterly dividend 9% to 38 cents a share and increased its share-buyback program to $300 million.

In all, Lazard reported a profit of $66.8 million, up from $56 million a year earlier. On a per-share basis, earnings rose to 50 cents from 42 cents. But excluding one-time items, the profit a year earlier was 77 cents a share.

Revenue slid 14% to $510.1 million. Analysts surveyed by Thomson Reuters projected 65 cents in per-share profit and $537.8 million in revenue.

In Lazard's financial-advisory business, which makes up just over half of its overall revenue, sales declined 12% from a year earlier, when deal-making was booming at a record clip.

Rocky markets at the start of the year also hit assets under management, pushing revenue in Lazard's asset-management business lower by 12%. The company reported $191 billion in assets under management as of March 31, down 4% from a year earlier and up 2% from the fourth quarter.

Lazard brought in $226 million in management fees, down 10% from last year's first quarter.

Lazard isn't alone in reporting lower results because of adverse market conditions. Private-equity firm Blackstone Group LP on Thursday said earnings were more than halved across all of its business lines, and banks including J.P. Morgan Chase & Co. and Morgan Stanley attributed lower profits to market swoons and lower client activity.

Write to Lisa Beilfuss at lisa.beilfuss@wsj.com

(END) Dow Jones Newswires

April 21, 2016 08:35 ET (12:35 GMT)

JP Morgan Chase (NYSE:JPM)
Historical Stock Chart
From Mar 2024 to Apr 2024