UPDATE 2-Eaton Vance reports lower Q3 revenue, profit

* Net income falls 37 percent, revenue drops 19 pct

* Recently outperforming shares down 4.4 pct (Updates with flow details, analyst comment)

BOSTON Aug 19 (Reuters) - Asset manager Eaton Vance Corp (EV.N) reported lower-than-expected third-quarter earnings on Wednesday as fee income declined, helping to push down its recently outperforming shares by more than four percent.

The Boston-based company said net income fell 37 percent in the three months ended July 31. But revenue, while down 19 percent, was slightly ahead of analysts' expectations.

Net earnings were $31.2 million, or 26 cents per share, down from $49.6 million, or 40 cents per share in the same period a year ago. Revenue was $228 million.

Analysts, on average, had expected earnings of 28 cents per share and revenue of $224.5 million, according to Reuters Estimates. However, both revenue and net income rose compared with the second quarter, as did assets under management.

Eaton Vance managed $143.7 billion as of July 31, up from $127.2 billion at the end of the second quarter.

Eaton Vance, like other asset managers, benefited from rising share prices during the quarter.

The company said inflows to long-term funds and separate accounts totaled $3.9 billion in the latest quarter, up from $800 million in the second quarter.

Sandler O'Neill analyst Michael Kim described the quarter as "somewhat mixed", referring to the lower fee income and higher-than-expected inflows.

"(The inflow data) suggests that Eaton Vance continues to take market share, particularly on the institutional side of the business," he said.

Eaton Vance's shares, which were up 38 percent for the year as of Tuesday, were down 4.4 percent at $28.82 in morning trade. The decline in the price probably partly reflected the stock's outperformance in recent weeks, Kim said.

(Reporting by Ross Kerber; editing by Maureen Bavdek and Ted Kerr)