Piper Jaffray, an investment bank, said Wednesday its profit in the second quarter more than doubled -- but missed Wall Street's expectations, because of light stock-trading volume.
The company's shares lost $4.71, or some 8.62%, in Wednesday morning trade on the New York Stock Exchange.
Piper Jaffray reported second-quarter net income of $9.3 million, or 52 cents per share, compared with earnings of $4.1 million, or 21 cents per share, in the second quarter of 2006.
Profit excluding the private-client services business, which Piper Jaffray sold to UBS Financial Services last year, was 58 cents per share. Analysts polled by Thomson Financial forecast profit of 74 cents per share.
Revenue rose 11 percent to $127 million, from $114.4 million. Wall Street expected revenue of $132 million.
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The disappointing revenue stemmed principally from a drop of nearly 3 percent in revenue from the company's institutional brokerage business, which trades stocks and bonds for clients. Revenue from trading stocks fell 9 percent to $28 million, because of weaker trading volume.
Investment banking revenue jumped almost 19 percent to $77.8 million, largely because the bank collected more money from helping companies sell stock. Piper Jaffray helped 34 companies raise $4.5 billion from selling stock during the quarter.
This offset a 35 percent decline in fees for advising on corporate takeover deals, to $11.7 million. The bank advised on seven deals with a total value of $4.2 billion.