S&P 500 (NYSE:SPY) component Federated Investors, Inc. (NYSE:FII) will unveil its latest earnings on Thursday, July 28, 2011. Federated Investors, Inc. provides investment management products and related financial services, including money market, equity and fixed-income investments. JPMorgan Chase Earnings Cheat Sheet: Profit Up As Stock Climbs 3%>>
Federated Investors, Inc. Earnings Preview Cheat Sheet
Wall St. Earnings Expectations: The average estimate of analysts is for profit of 41 cents per share, a rise of 17.1% 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 44 cents. Between one and three months ago, the average estimate moved down and dropped from 42 cents during the last month. For the year, analysts are projecting net income of $1.61 per share, a decline of 1.8% from last year.
Past Earnings Performance: The company met estimates last quarter after beating the forecasts in the prior two. In the first quarter, the company reported profit of 43 cents per share versus a mean estimate of net income of 43 cents per share. In the fourth quarter of the last fiscal year, the company beat estimates by 5 cents.
Wall St. Revenue Expectations: On average, analysts predict $244.6 million in revenue this quarter, a rise of 5.5% from the year ago quarter. Analysts are forecasting total revenue of $985.1 million for the year, a rise of 3.5% from last year’s revenue of $951.9 million.
Analyst Ratings: Analysts seem relatively indifferent about Federated Investors with eight of 12 analysts surveyed maintaining a hold rating.
A year-over-year revenue increase in the first quarter snaps a streak of three consecutive quarters of revenue declines. Revenue rose 4.2% in the first quarter and fell 6% in the fourth quarter of the last fiscal year, 16.5% in the third quarter of the last fiscal year and 25.4% in the second quarter of the last fiscal year.
While the company has been profitable for the last eight quarters, income has fallen year over year by an average of 16.6% 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.
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).
Stock Price Performance: During April 27, 2011 to July 22, 2011, the stock price had fallen $3.78 (-14.6%) from $25.96 to $22.18. The stock price saw one of its best stretches over the last year between September 7, 2010 and September 15, 2010 when shares rose for seven-straight days, rising 5.2% (+$1.10) over that span. It saw one of its worst periods between August 9, 2010 and August 16, 2010 when shares fell for six-straight days, falling 6.6% (-$1.39) over that span. Shares are down $3.52 (-13.7%) year to date.
(Source: Xignite Financials)