Piper Jaffray Net Surges on Lower Expenses

Piper Jaffray Cos." (PJC) first-quarter earnings soared as the financial firm trimmed expenses, helping to mask a drop in net revenue.

The Minneapolis, Minn., investment bank--like its larger Wall Street peers--is facing an uncertain future following the financial crisis, as a series of new regulatory changes could alter the business of everything from trading and derivatives to bank-capital requirements. Piper Jaffray and its peers will face more pressure to outline how they will boost profits in the post-crisis era.

Investment-banking revenue fell 16% to $40.4 million, while the asset-management arm's revenue was up 10% at $18.2 million. Revenue at the firm's brokerage business fell 1.9% to $43.3 million.

Overall, Piper Jaffray reported a profit of $10.1 million, or 57 cents a share, up from $2.9 million, or 15 cents a share, a year ago. Earnings from continuing operations were 60 cents, up from 33 cents.

Net revenue sank 3.4% to $109.5 million.

Analysts were expecting earnings from continuing operations of 50 cents a share, according to a poll conducted by Thomson Reuters.

Total non-interest expenses declined 7% at $91.4 million.

Shares closed Tuesday at $32.62 and were inactive premarket. The stock has risen 1.5% so far this year.

Write to Ben Fox Rubin at [e-mail].

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