Through TheFLY's Eyes: Lehman Bros.

from Theflyonthewall.com









Another Solid Quarter For Lehman

The initial consensus regarding Lehman Brothers' (LEH) Q3 report is that it was another solid quarter for the company, despite building headwinds.

LEH posted Q3 EPS of $1.57, up from $1.47 a year ago, and 8c above the $1.49 Reuters consensus estimate. Further, Q3 revenue totaled $4.2B compared to the consensus estimate of $4.0B.

LEH’s shares moved higher on the news, up $2.10 to $70.14 in early Wednesday afternoon trading.

Equity trading, with revenue up 31% to $837M, bolstered the bottom line, offsetting investing banking revenue, which declined 11% to $726M.

Analysts generally applauded LEH for maintaining solid margins and revenue despite a more-challenging capital markets economy: LEH is finding new ways to make money – for example, packaging mortgage loans made to commercial property owners - as growth in historic revenue streams slows.