Janus Capital Group 1Q earnings rise, miss expectations

Net income for the quarter ending March 31 rose to $37.4 million, or 23 cents per share, from $35.6 million, or 19 cents per share, during the same quarter a year earlier.

Analysts polled by Thomson Financial, on average, forecast earnings of 28 cents per share for the quarter.

Investment management fees increased 12 percent from the year-ago period to $225.5 million. Shareowner servicing fees and other charges increased 13 percent to $50.1 million, while performance fees more than doubled to $5.6 million.

Average assets under management fell 8.6 percent to $189.7 billion from $207.6 billion during the previous quarter. The decrease in assets reflects market depreciation and fund performance, as well as net outflows.

Janus' earnings missed Banc of America Securities analyst Michael Hecht's estimate of 27 cents per share because of weaker-than-expected earnings and outflows in assets, the analyst said in a research note.

"Outflows from long-term products of $1.5 billion were worse than our $2 billion inflow projection," Hecht wrote in the note.

Shares of Janus fell 12 cents to $24.95 in morning trading.