WisdomTree Investments Inc. Earnings: Here’s Why Shares are Up Now

WisdomTree Investments Inc (NASDAQ:WETF) delivered a profit and met Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are up 1.19%.

WisdomTree Investments Inc Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 350% to $0.09 in the quarter versus EPS of $0.02 in the year-earlier quarter.

Revenue: Rose 82.93% to $37.3 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: reported adjusted EPS income of $0.09 per share. By that measure, the company missed the mean analyst estimate of $0.09. It missed the average revenue estimate of $37.33 million.

Quoting Management: WisdomTree CEO and President Jonathan Steinberg commented, “With $5.0 billion in net inflows for the quarter and nearly $11 billion in the first half of 2013, we continued our positive momentum from the first quarter to achieve a strong second quarter with record market share gains. WisdomTree was the third best asset gatherer across all U.S. mutual fund and ETF complexes in the second quarter according to Morningstar.”

Key Stats (on next page)…

Revenue increased 27.13% from $29.34 million in the previous quarter. EPS increased 50% from $0.06 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.11 to a profit $0.1. For the current year, the average estimate has moved down from a profit of $0.37 to a profit of $0.35 over the last ninety days.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.

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