Waddell & Reed Financial Earnings: Here’s Why the Stock is Rising Now

Waddell & Reed Financial Inc. (NYSE:WDR) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 2.37%.

Waddell & Reed Financial Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 39.58% to $0.67 in the quarter versus EPS of $0.48 in the year-earlier quarter.

Revenue: Rose 7.18% to $331.7 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Waddell & Reed Financial Inc. reported adjusted EPS income of $0.67 per share. By that measure, the company beat the mean analyst estimate of $0.64. It beat the average revenue estimate of $327.1 million.

Quoting Management: “We continue to make progress toward our objective of improving the operating margin,” said Hank Herrmann, Chairman and Chief Executive Officer of Waddell & Reed Financial, Inc. “We have been able to improve margins through careful expense management, consistent organic growth, and the benefit of positive market action on our business model.”

Key Stats (on next page)…

Revenue increased 3.36% from $320.93 million in the previous quarter. EPS increased 6.35% from $0.63 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.69 and has not changed. For the current year, the average estimate has moved down from a profit of $2.68 to a profit of $2.66 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)