FBR Capital Markets posts 1Q loss on declining revenue

FBR Capital Markets lost $10.2 million, or 16 cents per share, during the quarter ending March 31, compared with earnings of $11 million, or 17 cents per share, during the same period the previous year.

Analysts polled by Thomson Financial, on average, forecast a loss of 11 cents per share for the quarter on revenue of $78.7 million.

Revenue fell to $104 million during the first quarter, from $143.2 million during the year-ago period.

Investment banking revenue, by far FBR Capital Markets primary source of revenue, fell to $70 million during the first quarter, a 32 percent decline from the $103.7 million generated during the year-ago period.

FBR Capital Markets merchant banking division posted losses on its investments during the first quarter, pushing the company to an overall loss. The value of the merchant banking division's investments was $54 million at the end of the first quarter, $4.3 million less than it was just three months earlier.