Investment bank Lehman Brothers Holdings Inc. said on Monday its quarterly earnings rose, as revenue from trading and investment banking jumped.
Lehman, the fourth largest U.S. investment bank by market capitalization, said earnings were $1.0 billion, or $1.69 a share, for the fiscal second-quarter ended May 31, up from $683 million, or $1.13 a share, a year leearlier. The year-ago per share is adjusted to reflect a two-for-one stock split in the 2006 second quarter.
Analysts on average had forecast earnings before exceptional items of $1.60, according to Reuters Estimates.
Lehman Brothers, once considered mainly a bond house, has built up a strong mergers advisory business in recent years. The company's shares have risen more than 90 percent since August 2004.
But the stock has fallen 15 percent since April 27, compared with a roughly 10 percent decline in the broader sector, as investors have grown increasingly concerned that global inflation and rising interest rates could cut into Lehman's businesses.