WASHINGTON (dpa-AFX) - Investment manager AllianceBernstein Holding L.P. (AB), Friday said it slipped to a loss in the fourth quarter hurt by lower base fees revenue and one-time compensation expenses. Excluding items, the company recorded a profit that missed Street estimates, with revenues also falling short of expectations. Following the news, AllianceBernstein stock slid almost 8 percent in morning trade on the New York Stock Exchange.
Net loss for the fourth quarter was $199.5 million or $1.97 per unit, compared to net income of $43.3 million or $0.42 per unit last year.
Results for the quarter include a $587 million, one-time, non-cash charge for all unrecognized deferred incentive compensation on outstanding awards from prior years.
Excluding items, adjusted earnings for the quarter was $6.9 million or $0.07 per unit, compared to $40.8 million or $0.40 per unit last year.
On average, 8 analysts polled by Thomson Reuters expected earnings of $0.19 per share for the quarter. Analysts' estimates typically exclude special items.
Revenue for the quarter declined 20 percent to $625 million from $777.6 million in the prior year, hurt mainly by lower base fees. Analysts expected revenues of $650.36 million.
'The fourth quarter proved to be a difficult finish to a challenging 2011 for our firm,' said CEO Peter Kraus.
'The year was characterized by global market volatility, which caused risk aversion on the part of equity investors. While markets partially rebounded from prior lows in the fourth quarter, trading activity declined sharply...'
Total expenses for the quarter jumped to $1.2 billion from $0.62 billion in the corresponding quarter last year.
As at December 31, 2011, the company had assets under management of $406 billion, down from $478 billion in the prior year. At January 31, 2012, assets under management were $421 billion.
The company declared a distribution of $0.12 per unit for the fourth quarter, payable on March 8 to holders of record on February 21.
AB is trading at $15.43, down $1.08 or 6.54%, on the NYSE.
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