earning surprise +9%
AP
LaBranche shares rise after 1Q surprise, debt reduction
Tuesday April 22, 2:55 pm ET
LaBranche shares move higher after 1st-quarter surprise, planned debt reduction
NEW YORK (AP) -- LaBranche & Co. shares jumped Tuesday after the stock broker and dealer reported adjusted earnings that beat expectations on Wall Street.
LaBranche shares rose 46 cents, or 10 percent, to $5.05 in afternoon trading.
The company posted a hefty loss of $40.2 million in the first quarter after the value of its stake in the New York Stock Exchange tumbled. But adjusted to exclude that investment loss, earnings came in ahead of estimates.
The company also said it would redeem some debt and repurchase shares.
Goldman Sachs analyst Harris Tanona said the debt repayment will have a meaningful "impact on interest expenses and earnings moving forward."
The investment loss was from the company's stake in NYSE Euronext Inc. LaBranche received 3.1 million shares of the company -- then known as NYSE Group -- in 2006. In the first quarter, the value of that stake plunged 30 percent, to $191.3 million from $272.1 million, on concerns that a slowing global economy could hurt trading volume.