Janus Capital Group’s first-quarter preliminary earnings dropped 90 percent and fell short of analysts’ estimates as mutual-fund management fees tumbled. Shares rose as much as 11 percent after client withdrawals decreased.
Net income declined to $2.7 million, or 2 cents a share, from $37.4 million, or 23 cents, a year earlier, the Denver-based company said in a statement Thursday. Excluding certain items, earnings were 5 cents a share, according to chief financial officer Gregory Frost, compared with the 6-cent average estimate of 14 analysts surveyed by Bloomberg.
Outflows from stock and bond funds were $900 million, less than expected, Michael Kim, an analyst at Sandler, O’Neill & Partners LP in New York, said in an e-mail message. Stock and bond funds lost $3 billion in withdrawals in the last quarter of 2008. Kim, who expected Janus to earn 5 cents a share, gives the company a “hold” rating.
