LaBranche shares fall more than 8 percent Monday

LaBranche shares fell 67 cents, or 9.2 percent, to end at $6.59 Monday.

On Friday, LaBranche said its second-quarter loss narrowed to $21.3 million, or 34 cents per share. Adjusted earnings, which exclude a pretax loss on shares of NYSE Euronext, totaled $1.7 million, or 3 cents per share.

Analysts polled by Thomson Financial, on average, forecast adjusted earnings of 4 cents per share.

LaBranche's earnings failed to meet Sandler O'Neill & Partners LP analyst Richard Repetto's estimate of 7 cents per share because of lower principal trading, losses on investments outside the NYSE Euronext shares and a higher tax rate than expected.

Revenue fell 59 percent to $37.1 million from $90.1 million during the year-ago period. Revenue fell as principal trading gains declined, Repetto wrote in a research note.

Repetto cut his 2008 and 2009 earnings estimates by 10 cents per share each to 25 cents per share and 35 cents per share respectively.

Repetto did increase his price target to $7.50 from $7 as the company was profitable on an adjusted basis for the third straight quarter, which suggests it should be trading at a higher premium, he wrote in the note.

Shares of LaBranche have traded between $3.70 and $8.12 during the past year.