UPDATE 1-FBR Capital Markets posts narrower Q3 loss

* Q3 loss/shr $0.11 vs loss $0.44/shr yr-ago

* Pretax core oper income, excl items, $1.4 mln

* Revenue up 41 pct at $71.4 mln

Oct 20 (Reuters) - FBR Capital Markets Corp (FBCM.O) reported a narrower quarterly loss helped by a four-fold rise in revenue in the capital raising segment of its investment banking business.

The company reported a net loss of $7 million, or 11 cents per share, for the third quarter, compared with a net loss of $28.6 million, or 44 cents, a year earlier.

Excluding items, it posted a pretax core operating income of $1.4 million for the quarter versus a pretax core operating loss of $26.2 million a year ago.

Analysts on average had expected a profit of 5 cents a share, before special items, according to Thomson Reuters I/B/E/S.

Revenue during the quarter was $71.4 million, up 41 percent from last year.

Shares of the company fell 11 percent to $6.02 in extended trade. They closed at $6.76 on Nasdaq. (Reporting by Brenton Cordeiro in Bangalore; Editing by Gopakumar Warrier)