Alesco Financial rises as Q2 profit meets expectations
Shares of Alesco Financial Inc. (NYSE: AFN) are higher following news before the opening that second-quarter profit met Wall Street’s expectations.
The net income for the three months ended June 30 was $16.9 million, or $0.31 per share, in line with what one analyst polled by Thomson Financial was expecting. The Philadelphia-based specialty finance company, which operates as a real estate investment trust, had earnings of $0.36 per share during the same quarter a year ago.
Total revenues came to $19.96 million, three times more than the $6.67 million Alesco Financial brought in during the second-quarter of 2006.
The company also reported that on Aug. 3 its board approved a share repurchase plan to buy up to $50 million worth of common shares. The timing and exact number of shares purchased will depend on market conditions.
Alesco Financial’s portfolio consists of investments in Trust Preferred Securities (TruPS), Mortgage Backed Securities and Corporate Loan Obligations. It is externally managed by asset management firm Cohen & Company.
At 11:49 a.m. ET shares were up $0.82, or 22%, to $4.49. The 52-week high of $11.19 was reached on Jan. 22, 2006. The 52-week low of $2.61 was set on Aug. 1.
