Federated Investors Earnings: Doubled Digit Growth on Two Fronts

Federated Investors, Inc. (NYSE:FII) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation.

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Federated Investors, Inc. Earnings Cheat Sheet

Results: Net income increased 34.27% to $49.6 million (44 cents per diluted share) in the quarter versus a net gain of $36.94 million in the year-earlier quarter.

Revenue: Rose 11.81% to $244.8 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Federated Investors, Inc. reported adjusted net income of 44 cents per share. By that measure, the company beat the mean analyst estimate of $0.40. It missed the average revenue estimate of $251.03 million.

Quoting Management: “In 2012, Federated’s range of income-oriented investment strategies proved to be highly attractive options for investors,” said J. Christopher Donahue, President and CEO…

…On the equity side, assets in our strategic-value dividend strategies increased more than 35 percent during the year to $14 billion, while on the fixed-income side, Federated had record sales of nearly $22 billion in our funds and separate accounts.”

Key Stats:

Revenue increased 1.09% from $242.17 million in the previous quarter. Net income decreased 11.06% from $55.77 million in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.43 and has not changed. For the current year, the average estimate has moved up from a profit of $1.64 to a profit of $1.73 over the last ninety days.

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(Company fundamentals provided by Xignite Financials.)