Life Partners Holdings Inc., Waco, Texas, expects to report a 176% increase in revenues, from $12.8 million for the first half of last fiscal year to over $35 million in the first half of this fiscal year.
Revenues for the life settlement firm for the second quarter are expected to be up by 168%, to $17.7 million, from around $7 million during the second quarter of last fiscal year, according to company projections.
Life Partners, plans to report its earnings in filings with the Securities and Exchange Commission about Oct. 15.
Despite its strong anticipated gains, investors appear to have wanted much more. One analyst, Thomson Financial, had projected earnings of 57 cents a share, 11 cents more than Life Partners’ management is predicting.
The company’s stock price slid $7.90 Wednesday, the day of its earnings announcement, to $39.38.
The company expects financial results for the second half of the year to be strengthened by its new relationship with WestLB, an international bank, according to Brian Pardo, Life Partners’ chief executive officer. WestLB has headquarters in Dusseldorf and Muenster, Germany,
Pardo also expects increased revenue due to the recent turmoil in the financial markets, which he predicted will make life settlements more attractive to many wealthy investors and to seniors holding life policies.