Artio Global Investors Earnings: Here’s Why Investors are Buying Shares Now

Artio Global Investors Inc. (NYSE:ART) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are up 32.20%.

Artio Global Investors Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 71.43% to $0.02 in the quarter versus EPS of $0.17 in the year-earlier quarter.

Revenue: Decreased 59.73% to $20.8 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Artio Global Investors Inc. reported adjusted EPS income of $0.02 per share. By that measure, the company beat the mean analyst estimate of $-0.01. It missed the average revenue estimate of $22.35 million.

Quoting Management: “I am delighted to be able to announce this merger, which we believe will be very beneficial for our clients and shareholders,” said Tony Williams, Chief Executive Officer of Artio Global. “Aberdeen brings vast financial strength, with a market cap of over $7.5 billion, and has a strong investment-centric culture consistent with Artio Global’s.”
“Our High Grade and Global High Yield teams will form a core part of Aberdeen’s fixed income capabilities, enhanced by the depth of its resources. We will continue to manage our International Equity and Global Equity strategies until the anticipated closing date, at which time Aberdeen will assume investment management responsibilities for them, subject to client consent. Aberdeen has a strong record of investment performance and we are confident that our clients will benefit from its robust investment process and global footprint of analytical resources.”

Key Stats (on next page)…

Revenue decreased 87.7% from $169.11 million in the previous quarter. EPS decreased 71.43% from $0.07 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a loss of $0 to a loss $0.02. For the current year, the average estimate is a profit of $0.21, which is the same with that ninety days ago.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)