Pimco’s Profits Fall Short of Expectations

Pimco Advisors Holdings LP, one of the nation’s largest investment management firms, said Tuesday it expects to report lower-than-expected first-quarter profits despite a booming stock market that has lifted the fortunes of other money managers.

Newport Beach-based Pimco, citing weaker performance fees and more expensive technology and consulting costs, said it expects to report quarterly earnings of 36 to 38 cents per unit, compared with 34 cents for the same period last year. Analysts surveyed by First Call Corp. had estimated earnings of 41 cents a share.

That profit forecast is before a nonrecurring charge of 16 to 18 cents per unit that the company expects to take in the quarter. The provision will be used to consolidate Oppenheimer Capital, an investment advisory subsidiary, into a new operation and for severance costs related to senior management changes at Oppenheimer Capital, it said.

Pimco shares fell $1.06 to $28.63 on the New York Stock Exchange.

Along with its other investment advisor unit, Pacific Investment Management, Pimco has more than $248 billion in assets under management and has more than 1,600 institutional clients, including one-third of the nation’s largest 200 companies. It also manages 53 stock and bond mutual funds.

Its earnings will be released April 28.

In the first quarter, Pimco had consolidated net inflows exceeding $4 billion, despite net outflows in its equity operations.