Federated Investors Up 1.58% To $30.94 After Earnings Beat

Federated Investors (FHI) said after close Thursday that it earned $0.86 per share in quarter three 2023.

On the revenue line, the company reported $402.7 million, beating estimates by $2.3 million.

In the same quarter a year ago, the company earned $0.78 per share on revenue of $381.1 million.

The stock is up 1.58% to $30.94 after the report.

The firm's lower revenue growth to earnings signals that the firm has been able to reduce costs and improve its profit margin overall.

The average recommendation from Wall Street analysts was a Buy which may get revised based on this new data.

Trading in the five days leading up to the report earned Federated Investors a Bearish Sentiment Rank from InvestorsObserver.

Federated Investors has performed a little below average during the past few months. Before the report, Federated Investors received a Long-Term Technical Rank by InvestorsObserver of 44, putting it in the bottom half of stocks. The firm was recently trading at a 52-week low of $30.23 on October 26, 2023 and set a 52-week high on April 18, 2023 at $45.55.

Federated provides asset management services for institutional and individual investors. The company had $631.1 billion in managed assets at the end of March 2022, composed of equity (14%), multi-asset (1%), fixed-income (14%), alternative (4%), and money market (67%) funds. That said, the firm's cash-management operations are expected to generate around 35% of Federated's revenue this year, compared with 38%, 16%, and 7%, respectively, for the firm's equity, fixed-income, and alternatives/multi-asset operations. From a channel perspective, the company's products are distributed via trust banks, wealth managers and retail broker/dealers (60% of AUM), institutional investors (27%), and international clients (13%).