Federated Investors Earnings: Here’s Why the Stock is Up Now

Federated Investors, Inc. (NYSE:FII) delivered a profit and missed Wall Street’s expectations, AND 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 0.73%.

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Federated Investors, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 0% to $0.41 in the quarter versus EPS of $0.41 in the year-earlier quarter.

Revenue: Decreased 2.45% to $227.9 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Federated Investors, Inc. reported adjusted EPS income of $0.41 per share. By that measure, the company missed the mean analyst estimate of $0.42. It missed the average revenue estimate of $250.84 million.

Quoting Management: “With more than 80 percent of Federated’s rated equity-fund assets finishing in the top half of their respective categories for the one-year period, we saw strong demand for a range of strategies, including our Kaufmann large growth portfolio, international equity funds and balanced products,” said J. Christopher Donahue, president and chief executive officer. “At the same time, we continued to see significant sales in a variety of income-oriented strategies, both equity and fixed income.”

Key Stats (on next page)…

Revenue decreased 7.61% from $246.68 million in the previous quarter. EPS decreased 6.82% from $0.44 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 profit of $0.45 to a profit $0.44. For the current year, the average estimate is a profit of $1.8, 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)