Federated Investors Inc. Third Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Federated Investors Inc (NYSE:FII) will unveil its latest earnings on Thursday, October 25, 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 analyst estimate is for net income of 41 cents per share, a rise of 10.8% from the company’s actual earnings for the year-ago quarter. The average estimate is the same as three months ago. Between one and three months ago, the average estimate was unchanged. It also has not changed during the last month. For the year, analysts are projecting profit of $1.64 per share, a rise of 5.1% from last year.

Past Earnings Performance: Last quarter, the company fell short of estimates by 2 cents, coming in at net income of 39 cents per share against a mean estimate of profit of 40 cents. The company topped expectations in the first quarter.

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Wall St. Revenue Expectations: Analysts predict a rise of 12.8% in revenue from the year-earlier quarter to $241.4 million.

Stock Price Performance: Between July 26, 2012 and October 19, 2012, the stock price rose $1.04 (5.2%), from $19.93 to $20.97. 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, increasing 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, dropping 13.6% (-$2.67) over that span.

A Look Back: In the second quarter, profit fell 4.7% to $40.4 million (39 cents a share) from $42.4 million (41 cents a share) the year earlier, missing analyst expectations. Revenue rose 3.3% to $234.4 million from $227 million.

Key Stats:

On the top line, the company is looking to build on last quarter’s revenue increase, which snapped a string of revenue drops. Revenue fell 13.7% in the third quarter of the last fiscal year, 12.3% in the fourth quarter of the last fiscal year and 3.7% in the first quarter before climbing in the second quarter.

The company is hoping to rebound with this earnings release after a net income drop last quarter. Net income rose 27.4% in the first quarter before dropping in the second 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)

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