Hambrecht & Quist Warns of Flat Results

Hambrecht & Quist Group said its earnings for fiscal 1998 will be flat, below analyst estimates, and that it will freeze hiring and cut jobs to reduce costs. The San Francisco-based investment bank said the job reductions will be made mostly through attrition and did not say how many of its 800 positions will be cut. Hambrecht & Quist was expected to earn $1.82 per share in the year ended Sept. 30, up from $1.68 per share, or $43.2 million, in fiscal 1997, according to a survey of analysts by First Call Corp. It plans to report earnings Oct. 20. “It appears that revenues for fiscal 1998 will be up from the prior year, but pretax income will be down,” Dan Case, chairman and chief executive, said in a statement. Many other securities companies have warned of lower earnings and staff cuts as losses from financial markets and a reduction in investment banking fee income in the last few months hit profits. Hambrecht & Quist shares rose $1.19 to close at $15.88 on the NYSE. The firm issued its warning after U.S. markets had closed.