Lazard shares fall after surprise loss

By Joseph A. Giannone

NEW YORK (Reuters) - Merger adviser Lazard Ltd (LAZ.N) posted a surprise first-quarter loss as advisory fees fell sharply and restructuring charges weighed on results, sending its shares down 5 percent.

Fees from its primary business, advising companies and governments on transactions and strategies, plunged 42 percent to $96.5 million, the firm said on Tuesday. Analysts, who track widely available M&A transaction data, were caught off guard by the decline.

"Restructuring revenues were the only positive standout in the quarter," Pali Capital analyst Doug Sipkin said in a note to clients.

Lazard reported a net loss of $53.5 million, or 77 cents a share, including a previously announced pretax charge of $62.6 million for layoffs and other business changes.

A year earlier, the firm reported net income of $7.8 million, or 14 cents.

Excluding the charge and assuming the full exchange of certain ownership interests, the bank posted a loss of 26 cents a share in the most recent period. On that basis, analysts on average had forecast a profit of 31 cents a share.

Revenue fell 19 percent to $248.4 million, also falling short of expectations.

"This obviously continues to be a tumultuous environment which impacts the timing and level of our revenue," Chief Executive Bruce Wasserstein said in a statement.