* First-quarter adj profit $0.50 vs est $0.52
* Total expenses up 7 percent
* Net income up 5 percent
* Reports net inflows of $5.4 billion
* Shares fall 2 pct
Feb 20 Asset manager Eaton Vance Corp's
first-quarter profit missed Wall Street estimates on higher
costs, even as investors put more money into its bond funds and
withdrawals from equity funds slowed.
Net income attributable to shareholders rose to $49.8
million, or 38 cents per share, from $47.3 million, or 40 cents
per share, a year earlier.
Excluding items, the Boston-based company earned 50 cents
per share. Analysts on average expected Eaton Vance to earn 52
cents per share, according to Thomson Reuters I/B/E/S.
Total expenses rose 7 percent to $217.8 million from a year
earlier, driven by an increase in compensation costs.
Eaton Vance reported net inflows of $5.4 billion in the
quarter compared with net outflows of $1.1 billion a year
Customers pulled out $463 million from Eaton Vance's equity
funds, less than a third of the outflow last year. Its floating
rate income funds reported $1.9 billion in net inflows, more
than 10 times last year's inflow.
"Strong net flows, the support of rising markets and
increased contributions from our strategic initiatives should
position us for improved earnings results over coming quarters,"
Chief Executive Thomas Faust Jr said in a statement.
Consolidated assets under management rose to an all-time
high of $247.8 billion at Jan. 31.
Shares of the company were down 2 percent at $39.85 in early
trade on the New York Stock Exchange on Wednesday. They have
risen 48 percent in the last year.