U.S. News

A.G. Edwards Profits Up on Higher Fee-Based Services Revenue


A.G. Edwards, a financial consulting and investment firm that has agreed to be acquired by Wachovia, said Thursday its fiscal first-quarter earnings rose on asset management and service fees.

A.G. Edwards said first-quarter net was $83 million or $1.10 a share, compared with $78 million or $1.01 a share in the year-earlier quarter.  Revenue for the St. Louis-based firm was $842 million in the fiscal first quarter, which ended May 31, topping year-earlier revenue of $765 million.

The latest revenue figures also exceeded estimates by analysts polled by Reuters, who had expected $822 million. 

On May 31, A.G. Edwards said it would merge into a wholly-owned subsidiary of Wachovia . The first quarter results include $10 million or 8 cents a share in expenses related to the agreement.

A.G. Edwards said asset management and service-fee revenues rose $50 million or 16 percent from the year-ago quarter. Total client assets at the end of the first quarter were $396 billion, up 15 percent from a year earlier.