Federated Investors Inc. Fourth Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Federated Investors, Inc. (NYSE:FII) will unveil its latest earnings on Thursday, January 26, 2012. 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 profit of 38 cents per share, a decline of 19.1% 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 40 cents. Between one and three months ago, the average estimate moved down. It also has dropped from 39 cents during the last month. Analysts are projecting profit to rise by 9.1% versus last year to $1.49.

Past Earnings Performance: The company has met estimates the last three quarters. Last quarter, the company reported net income of 37 cents per share to fall in step with the mean estimate.

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Wall St. Revenue Expectations: On average, analysts predict $225.1 million in revenue this quarter, a decline of 8.2% from the year ago quarter. Analysts are forecasting total revenue of $903.5 million for the year, a decline of 5.1% from last year’s revenue of $951.9 million.

Analyst Ratings: Analysts seem relatively indifferent about Federated Investors with seven of 11 analysts surveyed maintaining a hold rating.

A Look Back: In the third quarter, profit fell 11% to $38.3 million (37 cents a share) from $43.1 million (42 cents a share) the year earlier, meeting analyst expectations. Revenue fell 13.7% to $212.8 million from $246.6 million.

Key Stats:

While the company has been profitable for the last eight quarters, income has fallen year over year by an average of 13.4% over the past four quarters. The quarter hit the hardest was the first quarter, that saw a 20.9% drop.

Revenue has fallen in the past two quarters. In the second quarter, the figure fell 1.2%.

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), and Cohen & Steers, Inc. (NYSE:CNS).

Stock Price Performance: During December 20, 2011 to January 20, 2012, the stock price had risen $3.84 (26.3%) from $14.59 to $18.43. The stock price saw one of its best stretches over the last year between December 28, 2011 and January 10, 2012 when shares rose for nine-straight days, rising 19.9% (+$2.89) over that span. It saw one of its worst periods between November 3, 2011 and November 14, 2011 when shares fell for eight-straight days, falling 12.6% (-$2.43) over that span.

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

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