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 27, 2011. 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 37 cents per share, a decline of 11.9% 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 40 cents during the last month. For the year, analysts are projecting net income of $1.50 per share, a decline of 8.5% from last year.

Past Earnings Performance: The company met estimates last quarter after beating the forecasts in the prior two. In the second quarter, the company reported profit of 41 cents per share versus a mean estimate of net income of 41 cents per share. In the first quarter, the company beat estimates by 0 cents.

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Wall St. Revenue Expectations: Analysts are projecting a decline of 5.5% in revenue from the year-earlier quarter to $228.7 million.

Analyst Ratings: Analysts seem relatively indifferent about Federated Investors with six of 10 analysts surveyed maintaining a hold rating.

A Look Back: In the second quarter, profit fell 11% to $42.4 million (41 cents a share) from $47.6 million (46 cents a share) the year earlier, meeting analyst expectations. Revenue fell 1.2% to $227 million from $229.8 million.

Key Stats:

While the company has been profitable for the last eight quarters, income has fallen year over year by an average of 16.7% over the past four quarters. The quarter hit the hardest was the third quarter of the last fiscal year, that saw a 24.4% drop.

Over the last four quarters, revenue has fallen an average of 4.9% year over year. The biggest drop came in the third quarter of the last fiscal year, when revenue fell 16.5% from the year earlier quarter.

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 August 25, 2011 to October 21, 2011, the stock price had risen $2.53 (15.2%) from $16.64 to $19.17. The stock price saw one of its best stretches over the last year between September 9, 2011 and September 16, 2011 when shares rose for six-straight days, rising 8.5% (+$1.39) over that span. It saw one of its worst periods between August 29, 2011 and September 6, 2011 when shares fell for six-straight days, falling 9.1% (-$1.64) over that span. Shares are down $6.23 (-24.5%) year to date.

(Source: Xignite Financials)

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