By Ross Kerber
BOSTON, Oct 29 (Reuters) - Money manager AllianceBernstein Holding LP reported better-than-expected, third-quarter income on Thursday as operating expenses declined after layoffs.
AllianceBernstein said net income attributable to its unitholders fell to $199 million from $219 million in the same period a year earlier. Diluted net income per unit was 67 cents per share, down from 73 cents a year ago.
But that was still well above the 45 cents per unit that analysts had expected on average, according to Thomson Reuters I/B/E/S.
Total revenue was $806.8 million, down from $850 million a year earlier, but better than the $737.1 million analysts expected.
Analyst William Katz of Buckingham Research said he had expected the company to earn 60 cents per unit and said the additional seven cents the company reported seemed to come from investment gains.
'It's a reputable beat,' he said.
In a webcast presentation to analysts, AllianceBernstein said its headcount stood at 4,544 people at the end of September, down from 5,663 people a year earlier. The company now has a few more than 4,400 employees, executives said.
Layoffs began at the end of 2008. Many other asset managers have also cut staff as market declines cut into their revenue.
In response to an analysts' question, Chief Executive Peter Kraus said the cuts were not too deep, however. 'We never stopped investing,' he said, citing expansions of teams that invest in real estate and special government programs. 'We're setting the stage for what we think is (a sustainable) operating margin on the way up, and feel comfortable with it,' Kraus said.
Assets under management were $498 billion at the end of September, up from $447 billion at the end of June.
Shares in AllianceBernstein rose 3.8 percent to $27.37 in after-hours trade from their $26.37 close in regular trading on the New York Stock Exchange.
(Reporting by Ross Kerber; Editing by Tim Dobbyn, Leslie Gevirtz and Bernard Orr) Keywords: ALLIANCEBERNSTEIN/ (Ross.Kerber@ThomsonReuters.com; +1-617-856-4341; Ross.Kerber.Reuters.com@Reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
BOSTON, Oct 29 (Reuters) - Money manager AllianceBernstein Holding LP reported better-than-expected, third-quarter income on Thursday as operating expenses declined after layoffs.
AllianceBernstein said net income attributable to its unitholders fell to $199 million from $219 million in the same period a year earlier. Diluted net income per unit was 67 cents per share, down from 73 cents a year ago.
But that was still well above the 45 cents per unit that analysts had expected on average, according to Thomson Reuters I/B/E/S.
Total revenue was $806.8 million, down from $850 million a year earlier, but better than the $737.1 million analysts expected.
Analyst William Katz of Buckingham Research said he had expected the company to earn 60 cents per unit and said the additional seven cents the company reported seemed to come from investment gains.
'It's a reputable beat,' he said.
In a webcast presentation to analysts, AllianceBernstein said its headcount stood at 4,544 people at the end of September, down from 5,663 people a year earlier. The company now has a few more than 4,400 employees, executives said.
Layoffs began at the end of 2008. Many other asset managers have also cut staff as market declines cut into their revenue.
In response to an analysts' question, Chief Executive Peter Kraus said the cuts were not too deep, however. 'We never stopped investing,' he said, citing expansions of teams that invest in real estate and special government programs. 'We're setting the stage for what we think is (a sustainable) operating margin on the way up, and feel comfortable with it,' Kraus said.
Assets under management were $498 billion at the end of September, up from $447 billion at the end of June.
Shares in AllianceBernstein rose 3.8 percent to $27.37 in after-hours trade from their $26.37 close in regular trading on the New York Stock Exchange.
(Reporting by Ross Kerber; Editing by Tim Dobbyn, Leslie Gevirtz and Bernard Orr) Keywords: ALLIANCEBERNSTEIN/ (Ross.Kerber@ThomsonReuters.com; +1-617-856-4341; Ross.Kerber.Reuters.com@Reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.