WisdomTree Investments Earnings: Here’s Why Investors are Excited Now

WisdomTree Investments, Inc. (NASDAQ:WETF) delivered a profit and met 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 5%.

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WisdomTree Investments, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 500% to $0.06 in the quarter versus EPS of $0.01 in the year-earlier quarter.

Revenue: Rose 53.05% to $29.34 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: WisdomTree Investments, Inc. reported adjusted EPS income of $0.06 per share. By that measure, the company met the mean analyst estimate of $0.06. It beat the average revenue estimate of $29.08 million.

Quoting Management: WisdomTree CEO and President Jonathan Steinberg commented, “WisdomTree’s net inflows of $5.9 billion represented our best quarter yet and fueled a meaningful acceleration in our organic growth in 2013. The drivers behind this strong top-line growth underscore two important points: First, WisdomTree is innovating and executing at the highest levels — our currency hedged Japanese equity strategy led the entire ETF industry with $3.9 billion of net inflows in the first quarter. Second, we are seeing balanced growth across our platform in important asset classes. In fact, excluding Japan-related assets, we achieved our second best quarter with $1.9 billion in inflows across our dividend-weighted equity and fixed income strategies.”

Key Stats (on next page)…

Revenue increased 24.48% from $23.57 million in the previous quarter. EPS increased 50% from $0.04 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.06 to a profit $0.09. For the current year, the average estimate has moved up from a profit of $0.27 to a profit of $0.37 over the last ninety days.

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

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