Federated Investors Second Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Federated Investors Inc (NYSE:FII) will unveil its latest earnings on Thursday, July 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 39 cents per share, a decline of 4.9% 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 40 cents. Between one and three months ago, the average estimate was unchanged. It has since dropped over the last month. Analysts are projecting profit to rise by 5.1% versus last year to $1.64.

Last quarter, the company came in at net income of 41 cents per share against a mean estimate of profit of 39 cents per share, beating estimates after missing them in the previous quarter. In the fourth quarter of the last fiscal year, it missed forecasts by 3 cents.

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A Look Back: In the first quarter, profit rose 27.4% to $42.3 million (41 cents a share) from $33.2 million (32 cents a share) the year earlier, exceeding analyst expectations. Revenue fell 3.7% to $233.6 million from $242.7 million.

Wall St. Revenue Expectations: Analysts predict a rise of 7.5% in revenue from the year-earlier quarter to $242.7 million.

Stock Price Performance: Between July 16, 2012 and July 20, 2012, the stock price dropped $1.32 (-6%), from $22.03 to $20.71. 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.

Key Stats:

On the top line, the company is hoping to use this earnings announcement to snap a string of four-straight quarters of revenue decreases. Revenue fell 1.2% in the second quarter of the last fiscal year, 13.7% in third quarter of the last fiscal year and 12.3% in the fourth quarter of the last fiscal year and then fell again in the first quarter.

Last quarter’s earnings rise was a switch from preceding drops, so the upcoming earnings announcement is a chance to build on last quarter’s result. Net income fell in the second quarter of the last fiscal year, the third quarter of the last fiscal year and the fourth quarter of the last fiscal year before snapping that run with a profit increase in the first quarter.

Analyst Ratings: There are mostly holds on the stock with five of nine analysts surveyed giving that rating.

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

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