Federated Investors Inc. Earnings Cheat Sheet: Profit and Revenue Fall

S&P 500 (NYSE:SPY) component Federated Investors Inc. (NYSE:FII) reported its results for the second quarter. Federated Investors, Inc. provides investment management products and related financial services, including money market, equity and fixed-income investments.

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Federated Investors Earnings Cheat Sheet for the Second Quarter

Results: Net income for the asset management company fell to $42.4 million (41 cents per share) vs. $47.6 million (46 cents per share) a year earlier. This is a decline of 11% from the year earlier quarter.

Revenue: Fell 1.8% to $225.8 million from the year earlier quarter.

Actual vs. Wall St. Expectations: FII fell in line with the mean analyst estimate of 41 cents per share. It fell short of the average revenue estimate of $244.6 million.

Quoting Management: “During the second quarter, Federated’s clients continued to seek income-producing strategies –from our dividend-oriented equity portfolios to high-yield and other bond strategies,” said J.Christopher Donahue, president and chief executive officer.

Key Stats:

The company has now fallen in line with estimates for the past two quarters. It reported net income of 43 cents in the first quarter.

While the company has been profitable for the last nine quarters, income has fallen year over year by an average of 15.5% over the past five quarters. The quarter hit the hardest was the third quarter of the last fiscal year, that saw a 24.4% drop.

Revenue fell last quarter after seeing a rise the quarter before. Revenue dropped 4.2% to $242.7 million in the first quarter from the year earlier.

Competitors to Watch: Franklin Resources, Inc. (NYSE:BEN), Waddell & Reed Financial, Inc. (NYSE:WDR), T. Rowe Price Group, Inc. (NASDAQ:TROW), Affiliated Managers Group, Inc. (NYSE:AMG), SEI Investments Company (NASDAQ:SEIC), Eaton Vance Corp. (NYSE:EV), Janus Capital Group Inc. (NYSE:JNS), U.S. Global Investors, Inc. (NASDAQ:GROW), Virtus Investment Partners, Inc. (NASDAQ:VRTS), BlackRock (NYSE:BLK), JP Morgan (NYSE:JPM), Goldman Sachs (NYSE:GS), Citigroup (NYSE:C), Bank of America (NYSE:BAC), Morgan Stanley (NYSE:MS) and Cohen & Steers, Inc. (NYSE:CNS).

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(Source: Xignite Financials)