AllianceBernstein Earnings: Net Income Falls, But Still Strong

In spite of rising revenues, AllianceBernstein Holding L.P.’s (NASDAQ:AB) profit declined in the first quarter. AllianceBernstein Holding L.P. provides research, investment management and related services globally to a range of clients.

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AllianceBernstein Earnings Cheat Sheet for the First Quarter

Results: Net income for AllianceBernstein Holding L.P. fell to $43.7 million (42 cents/share) vs. $47.2 million (46 cents/share) a year earlier. A decline of 7.5% from the year earlier quarter.

Revenue: Rose 4% to $755.4 million YoY.

Actual vs. Wall St. Expectations: AB reported adjusted net income of of 41 cents/share. By that measure, the company fell in line with the mean estimate of 41 cents/share. Estimates ranged from 39 cents per share to 43 cents per share.

Quoting Management: “We are off to a solid start in 2011. Gross sales increased by double-digit percentages across all of our distribution channels compared to the fourth quarter of 2010, net outflows as a whole declined substantially – particularly in the Institutions channel – and we grew our adjusted operating income and expanded our adjusted operating margin,” said Peter S. Kraus, Chairman and Chief Executive Officer.

Key Stats:

Net income has increased 93.7% year over year on average across the last five quarters. The biggest gain came in the first quarter of the last fiscal year, when income climbed more than sevenfold from the year earlier quarter.

Competitors to Watch: UBS AG (NYSE:UBS), Legg Mason, Inc. (NYSE:LM), Westwood Hldgs. Group, Inc. (NYSE:WHG), Artio Global Investors Inc. (NYSE:ART), Diamond Hill Investment Group, Inc. (NASDAQ:DHIL), Epoch Holding Corp (NASDAQ:EPHC), Sanders Morris Harris Group (NASDAQ:SMHG), Gamco Investors Inc. (NYSE:GBL), Pzena Investment Management, Inc. (NYSE:PZN), and Franklin Resources, Inc. (NYSE:BEN)

Today’s Performance: Shares of AB are up 1.1% from the previous close.

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