Lehman, Bear Stearns Results Beat Forecasts
Lehman Bros. Holdings (ticker symbol: LEH) and Bear Stearns (BSC), two of the last independent U.S. investment banks, posted quarterly results Thursday that sailed past analysts’ expectations, showing resilience in the face of recent stock market carnage.
Revenue rose at both firms during a quarter that analysts expected to be tough for many Wall Street companies as stock markets dropped, stock offerings pulled back and the corporate bond market slumped.
Bear Stearns said profit fell 6% to $195.2 million, or $1.36 a share, but the results beat analysts’ expectations of $1.11 a share, according to First Call/Thomson Financial. Revenue rose 7.5% to $1.38 billion.
Lehman said net income rose 33% in the quarter to $399 million, or $1.46 a share, well above analysts’ average forecast of $1.26 a share as compiled by First Call. Revenue jumped 20% to $1.7 billion.
Lehman shares rose 94 cents to close at $77.06 on the New York Stock Exchange. Bear Stearns’ shares climbed $1.56 to $55.50, also on the NYSE.
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