Duff & Phelps posts 2nd-quarter profit

Duff & Phelps Corp. on Thursday reported a second-quarter profit as revenue growth at its core financial advisory services offset a decline in its investment banking business.

The New York-based firm reported net income of $1.3 million, or 9 cents per share, compared with a loss of $4.3 million in last year's second quarter.

Duff & Phelps, which went public last September, reported an adjusted profit excluding one-time items of $9.5 million, or 28 cents per share. On that basis, the per-share profit matched the consensus forecast of analysts surveyed by Thomson Financial.

Revenue rose 10 percent from $90.7 million to $100.6 million, just shy of analysts' forecast of $101.4 million.

Revenue from advisory services such as valuation and corporate finance consulting rose nearly 23 percent to $80.6 million in the latest quarter. Investment banking revenues _ from activities including transaction opinions and restructuring advice _ fell 19 percent to $17.2 million amid a recent slowdown in merger activity.

The earnings announcement came six days after Duff & Phelps agreed to acquire Kane Reece Associates Inc., a valuation consulting firm, for an undisclosed price. Two months ago, Duff & Phelps said it had established presences in Shanghai, Hong Kong and Beijing, marking its entry into the Chinese market.

On Thursday, Chairman and Chief Executive Noah Gottdiener indicated more such moves are possible.

"We are confident that the dynamics driving our business will continue over the long term, and we continue to enhance our platform to take advantage of these dynamics through targeted acquisitions and international expansion," he said in a statement.

Shares of Duff & Phelps fell 21 cents to $15.99 in morning trading.