Hill Rogal & Hobbs reported the brokerage saw a slight decline in net income for the first quarter.
The Glen Allen, Va.-based company reported first-quarter net income of $25.2 million, or 69 cents per share, compared with $25.9 million, or 71 cents per share, for the same period last year.
Bear Stearns analyst David Small said the company missed his operating earnings figure by 12 cents and the consensus by 91 cents.
Revenue was lower than expected as organic growth declined .9 percent.
Management noted that “accelerated declines” in insurance rates drove the weak revenue growth.
“While we expected organic growth to decelerate, we were not expecting organic growth to turn negative at this point,” Mr. Small wrote.
Given the company has continued difficulty in controlling expenses and faces a tough comparison in the second quarter figures, Mr. Small sees a “tough ride” in future earnings reports.
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