LaBranche 2Q loss narrows, but results miss Street

For the three months ended June 30, LaBranche said its loss narrowed to $21.3 million, or 34 cents per share. The results include a $33.2 million pretax loss on the company's NYSE Euronext shares and a $5.1 million pretax charge on early debt retirement.

The company, which acts as a market maker on the New York Stock Exchange floor, posted a 2007 second-quarter loss of $368.9 million, or $6 per share, which also included a hefty $54.6 million loss on NYSE shares and nearly $500 million in charges related to goodwill and stock listing rights.

On an adjusted basis, LaBranche said it earned $1.7 million, or 3 cents per share, in the latest period--down sharply from adjusted profit of $6.6 million, or 11 cents per share, in the second quarter of 2007.

Revenue dropped 59 percent to $37.1 million from $90.8 million a year ago. That reflects a 32 percent declines in revenue from transactions, to $43.6 million, and a 74 percent plunge in interest income, to $17.5 million.

Analysts polled by Thomson Financial, on average, expected higher adjusted profit of 4 cents per share, on revenue of $89 million. Analyst estimates typically exclude one-time charges and gains.

In morning trading, shares fell 79 cents, or nbearly 9 percent, to $7.19.