Federated Investors Fourth Quarter Earnings Sneak Peek

Federated Investors Inc (NYSE:FII) will unveil its latest earnings tomorrow, Thursday, January 24, 2013. Federated Investors provides investment management products and related financial services, including money market, equity and fixed-income investments.

Federated Investors Inc Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of 40 cents per share, a rise of 11.1% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from 42 cents. Between one and three months ago, the average estimate moved down. It also has dropped from 41 cents during the last month. For the year, analysts are projecting profit of $1.73 per share, a rise of 10.9% from last year.

Last quarter, the company came in at net income of 43 cents per share against a mean estimate of profit of 41 cents per share, beating estimates after missing them in the previous quarter. In the second quarter, it missed forecasts by one cent.

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A Look Back: In the third quarter, profit rose 45.5% to $55.8 million (54 cents a share) from $38.3 million (37 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 13.8% to $242.2 million from $212.8 million.

Here’s how Federated Investors traded following its last earnings report 3 months ago and leading up to its upcoming earnings report this week:

fii

Wall St. Revenue Expectations: Analysts are projecting a rise of 15.9% in revenue from the year-earlier quarter to $250.9 million.

Stock Price Performance: Between November 19, 2012 and January 17, 2013, the stock price had risen $3 (15.5%), from $19.39 to $22.39. The stock price saw one of its best stretches over the last year between June 11, 2012 and June 19, 2012, when shares rose for seven straight days, increasing 10.7% (+$2.11) over that span. It saw one of its worst periods between October 31, 2012 and November 14, 2012 when shares fell for 11 straight days, dropping 20.7% (-$4.81) over that span.

Key Stats:

On the top line, the company is looking to build on two-straight revenue increases with this earnings announcement. Revenue rose 3.3% in the second quarter before climbing again in the third quarter.

Analyst Ratings: With five analysts rating the stock a sell, none rating it as a buy and four rating it as a hold, there are indications of a bearish outlook.

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