Lehman’s Profit Soars as Trading Rebounds

Lehman Bros. Holdings Inc. said profit more than quadrupled in its fiscal fourth quarter, far more than forecast, on a surge in trading revenue and gains in investment banking. The securities firm said it earned $301 million, or $2.28 a share, up from $74 million, or 51 cents, a year ago, when volatile debt markets slashed Lehman’s trading profit. Analysts on average were expecting $1.97 a share for the latest quarter. “It was strong across the board, with trading leading the way,” said Richard Strauss, a Goldman, Sachs & Co. analyst, who had forecast Lehman would earn $2.10, the highest of 10 published estimates compiled by First Call/Thomson Financial. Lehman said net revenue more than doubled to $1.4 billion from $665 million in the quarter, as trading revenue soared to $972 million from $400 million. For the full year, Lehman’s net income climbed 54% to $1.13 billion, or $8.15 a share, from $736 million, or $5.19. Lehman shares rose $2.94 to close at $72.88 on the New York Stock Exchange.