Federated Investors Earnings: Beats the Street on Profit Rise

S&P 500 (NYSE:SPY) component Federated Investors Inc. (NYSE:FII) reported net income above Wall Street’s expectations for the third quarter. Federated Investors provides investment management products and related financial services, including money market, equity and fixed-income investments.

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Federated Investors Inc. Earnings Cheat Sheet

Results: Net income for Federated Investors Inc. rose to $55.8 million (54 cents per share) vs. $38.3 million (37 cents per share) in the same quarter a year earlier. This marks a rise of 45.5% from the year-earlier quarter.

Revenue: Fell 99.9% to $238,468 from the year-earlier quarter.

Actual vs. Wall St. Expectations: Federated Investors Inc. beat the mean analyst estimate of 41 cents per share. It fell short of the average revenue estimate of $242.7 million.

Quoting Management: “Federated continued to see client demand for our dividend-paying equity portfolios with more than $2.5 billion in net sales in those products in the first nine months of the year,” said J. Christopher Donahue, president and chief executive officer. “On the international side, Federated made significant moves to grow our global profile by hiring an executive to lead our new Asia Pacific initiative and expanding our European distribution capabilities through an agreement with Bury Street Capital, a successful European distribution firm based in London.”

Key Stats:

The company topped expectations last quarter after falling short of forecasts in the second quarter with net income of 39 cents versus a mean estimate of net income of 40 cents per share.

Net income has increased 7.4% year-over-year on average across the last five quarters. The biggest gain came in the most recent quarter, when income climbed 45.5% from the year-earlier quarter.

Looking Forward: The average estimate for the fourth quarter is steady at 42 cents a share. The average estimate for the fiscal year has risen to $1.64 per share from $1.63 in the past month.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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