Monday, SWS Group, Inc. (SWS) announced that its profit for the first-quarter decreased from the prior year quarter. However, earnings for the quarter came in ahead of analysts' consensus.
The Dallas-based financial services holding company, recorded net income of $3.1 million or $0.11 per share, compared with net income of $7.0 million or $0.26 per share for the prior year quarter. Analysts polled by Thomson Reuters expected the company to report earnings of $0.07 per share. Analysts' estimates typically exclude special items.
Results for the quarter included a previously announced pre-tax loss of $6.3 million resulting from a clearing correspondent's unauthorized trading. The prior fiscal year's first quarter included a $5.4 million pre-tax write-off of a Lehman Brothers counterparty obligation.
Total revenue for the quarter declined to $116 million from $122 million in the same quarter last year. Analysts expected revenues of $128.34 million for the quarter.
Net revenues were $99.5 million compared with $87.8 million in the first fiscal quarter a year ago.
Clearing segment net revenues declined to $5.2 million from $8.2 million in the first quarter of the prior fiscal year, and the segment reported a pre-tax loss of $5.7 million versus pre-tax income of $2.3 million for the same periods.
Retail segment net revenues decreased to $25.1 million from $28.7 million in the first quarter of the prior fiscal year. The retail segment recorded a $1.0 million pre-tax loss for the first quarter of fiscal 2010 compared with $1.5 million in pre-tax income in the first quarter of fiscal 2009.
Institutional segment net revenues increased to $49.1 million from $38.1 million in the comparable period of the prior fiscal year.
Banking segment net revenues increased to $19.3 million from $15.3 million in the first quarter of the prior fiscal year, while pre-tax income declined to $3.0 million from $4.5 million.
The bank's net interest revenue increased to $18.0 million in the first quarter from $14.7 million in the same period a year ago, as loan volume increased and the cost of funds declined.
Operating expenses increased $17.5 million over those reported for the first quarter of the prior fiscal year.
Total customer assets were $12.7 billion at September 25, 2009 compared with $10.8 billion a year earlier.
SWS closed Monday's regular trading at $13.41 up $0.03 or 0.22% on a volume of 0.142 million shares on the NYSE.
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