Federated Investors Earnings: Booking a Profit Again

S&P 500 (NYSE:SPY) component Federated Investors Inc. (NYSE:FII) reported its results for the second quarter. Federated Investors provides investment management products and related financial services, including money market, equity and fixed-income investments.

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Federated Investors Inc. Earnings Cheat Sheet

Results: Net income for Federated Investors Inc. fell to $40.4 million (39 cents per share) vs. $42.4 million (41 cents per share) a year earlier. This is a decline of 4.7% from the year-earlier quarter.

Revenue: Rose 2.8% to $232.1 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Federated Investors Inc. fell in line with the mean analyst estimate of 39 cents per share. It fell short of the average revenue estimate of $242.7 million.

Quoting Management: “Continued demand for high-quality, income-oriented investment strategies fueled Federated’s record gross sales of mutual funds, which topped $7 billion, during the quarter,” said J. Christopher Donahue, president and chief executive officer. “Federated continued to meet investor demand for bond products from short-duration strategies to high yield, while a variety of dividend-oriented equity products, including an international-dividend strategy, were among the top sellers during the quarter.”

Key Stats:

The company fell in line with estimates last quarter after beating forecasts in the previous quarter with net income of 41 cents versus a mean estimate of net income of 39 cents per share.

Net income has dropped 3.9% year-over-year on average across the last five quarters. Performance was hurt by a 20.4% decline in the fourth quarter of the last fiscal year from the year-earlier quarter.

Looking Forward: Expectations for the company’s next-quarter results are lower than they have been. Over the past sixty days, the average estimate for third quarter has fallen from 43 cents per share to 41 cents. The average estimate for the fiscal year is now $1.64 per share, down from $1.68 sixty days ago.

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

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