The company posted a quarterly profit of $5.5 million, or 47 cents per share, marking a stark contrast to the $21.7 million, or $1.90 per share, recorded during the same period last year. Revenue retreated 10 percent to $382 million, down from $424.4 million. While the stock remains up 19 percent year-to-date, Friday’s closing price of $86.20 reflected investor concern over these narrowing margins.
Chief Executive Robert Lowenthal attributed the earnings pressure to decreased retail trading and investment banking volumes. Additionally, results were impacted by a $21 million pre-tax expense tied to a long-term incentive program for financial advisors. When adjusted to account for these fluctuations, per-share earnings reached $1.81, falling short of the $2.77 reported in the prior year.

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