UPDATE 2-Investment Technology Q1 profit beats Wall Street

jueves 1 de mayo de 2008 20:08 CEST

(Recasts, adds details from presentation, analyst's comments, share movement)

By Sweta Singh

BANGALORE May 1 (Reuters) - Investment Technology Group (ITG.N: Cotización), an agency brokerage and technology firm, reported a 34 percent rise in quarterly profit, beating Wall Street estimates, helped by increased revenue and trading volumes in its domestic market, sending shares up as much as 10 percent.

However, the shares reversed their early gains and fell more than 3 percent after the company did not raise its 2008 margin forecast for its U.S. operations in a conference call.

The company said it expects U.S. margins to remain slightly above 30 percent for 2008, well below pre-tax margins of 35 percent reported in the first quarter.

Revenue in the U.S. was strong, which is surprising, because the company has largely benefited from international markets in the last few quarters, Keefe, Bruyette & Woods analyst Niamh Alexander told Reuters.

Lower trading costs, partly due to exchanges lowering their trading fees, also benefited the company in the quarter, Alexander said.

The New York-based company said first-quarter net income was $33.0 million, or 75 cents a share, compared with $24.7 million, or 55 cents a share, in the year-ago quarter.

Analysts expected the company to earn 70 cents a share, before items, according to Reuters Estimates.   Continuación...