UPDATE: Eaton Vance Shares Surge On Upbeat Q4 Earnings

Shares of Eaton Vance

jumped more than 5% after the company reported better-than-expected earnings for the fourth quarter. The Boston, Massachusetts-based company reported a quarterly profit of $80.1 million, or $0.66 per share, versus a year-ago profit of $57.2 million, or $0.45 per share. Excluding one-time items, the company's earnings increased to $0.68 per share from $0.55 per share. Its revenue climbed 3.2% to $368.4 million. However, analysts were expecting earnings of $0.64 per share on revenue of $369 million. Long-term funds had net inflows of $6.8 billion in the latest quarter, versus net inflows of $3.9 billion in the year-ago period and net outflows of $2.0 billion in the third quarter. As of Oct. 31, consolidated assets under management climbed to $297.7 billion, compared to $280.7 billion on October 31, 2013 and versus $288.2 billion on July 31. Average consolidated assets under management rose to $293.8 billion in the quarter, versus $271.4 billion in the year-ago quarter and versus $289.3 billion in the third quarter. Investment advisory and administrative fees surged 4.3% to $314.6 million in the quarter. Operating margin widened to 37.8% versus 35.1%. On October 31, 2014, cash and cash equivalents totaled $385.2 million. "A strong fourth quarter enabled Eaton Vance to close fiscal 2014 with record earnings and our 19th consecutive year of positive net flows," said Thomas E. Faust Jr., Chairman and Chief Executive Officer. "We enter fiscal 2015 with favorable investment performance trends, improving net flows and the prospect of leading the evolution of actively managed funds to a better-performing and more tax-efficient structure with the potential launch of the initial NextShares™. It promises to be an exciting year." Eaton Vance shares rose 5.07% to $44.14 at 9:35 a.m. ET.