RPT-UPDATE 4-Eaton Vance shares drop 11 percent on earnings

(Repeats to fix headline)

* Eaton Vance shares plunge 11 percent

* Posts Q2 EPS 22 cents vs 43 cents year ago

* Meets analyst expectations but concern on taxes, outlook

* Revenue drops on asset decline vs. year earlier

* Analysts say flows weaker than expected (Updates with analyst, executive comments; comparatives with Legg Mason)

By Ross Kerber

BOSTON, May 20 (Reuters) - Asset manager Eaton Vance Corp (EV.N) reported net income fell by more than half in its second fiscal quarter as revenue dropped, and its shares fell more than 11 percent on concerns over weak flows into its funds.

The company technically met expectations it would earn 22 cents per share according to Reuters Estimates. But Sandler O'Neill analyst Michael Kim said the figure was closer to 19 cents a share when adjusted for a one-time tax gain.

That, plus concerns over slowing flows into its funds, were driving down the shares, Kim said.

"The flows were meaningfully light in terms of what people were expecting," said Kim, who has a "sell" rating on the stock.

In a conference call with analysts, Eaton Vance Chief Executive Thomas Faust Jr said sales have been strong since the start of April, which should improve flow figures.

Sales to institutional and high net worth individuals have also improved, he said, adding, "We're optimistic."

Flows into an asset manager's funds reflect success selling products, which in turn boost a company's assets and profits.

But publicly traded asset management firms have reported mixed flows this year, including outflows at some of the biggest firms. On May 5, for instance, Legg Mason Inc (LM.N) of Baltimore reported net outflows of $43.5 billion for its fiscal fourth quarter ended March 31.

Eaton Vance had $127.2 billion in assets under management as of April 30, up from $121.9 billion at the end of January but down from $159 billion as of April 30 last year.

Among its main investment products the company had a net inflow of $788 million, down from a net inflow of $3.3 billion in the previous quarter, reflecting a fall-off from institutions and high net worth individuals.

Among its open-end funds, closed-end funds and private funds the company had net inflows of $0.7 billion in its second quarter, up from net inflows of $0.5 billion for the three months ended Jan. 31.

In a research note, Credit Suisse analyst Craig Siegenthaler wrote the total inflow figure was "weaker than expected" compared with his forecast of flows of $2.7 billion, and reduced his earnings estimates.

On the call, analysts also focused on this year's performance of Eaton Vance's large Large-Cap Value fund, which was down 4 percent for the year through Friday, 5 percentage points worse than the category average, according to data from Morningstar Inc.

For the three months ended April 30 Eaton Vance earned $25.8 million, or 22 cents per share, down from $53.1 million, or 43 cents per share, in same period a year ago.

Revenue fell to $193 million in the quarter from $273 million a year earlier, due to a drop in total assets under management and a rise in separate account assets. Analysts had expected revenue of $206 million.

The shares were at $26.02 in midday trading on Wednesday, down $3.27 of 11.16 percent. In November, they hit a low of $11.87, but have recovered along with competitors as markets moved up and because the firm continued to report positive flows. (Reporting by Ross Kerber, editing by Dave Zimmerman, Leslie Gevirtz)