WisdomTree Q3 adjusted EPS beats, helped by inflow growth
Overview
Global asset manager's Q3 revenue slightly missed analyst expectations, AUM hit record $171 bln
Adjusted EPS for Q3 beat analyst expectations
Company repurchased $10.6 mln in common stock during Q3
Outlook
WisdomTree says it is focused on expanding in liquid alternatives, private markets and tokenization
Company sees opportunities from the democratization of investing and convergence of public and private markets
Result Drivers
PRODUCT INFLOWS - Co said net inflows were primarily driven by fixed income, commodity and U.S. equity products
HIGHER AUM - Co attributed revenue growth to higher average AUM, partly offset by lower transaction and performance fees
OPERATING LEVERAGE - Co said margin expansion was primarily due to higher revenues and operating leverage
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Operating Revenue | Slight Miss* | $179.38 mln | $179.54 mln (6 Analysts) |
Q3 Adjusted EPS | Beat | $0.32 | $0.30 (7 Analysts) |
Q3 EPS | $0.32 | ||
Q3 Adjusted Gross Margin | 83.00% | ||
Q3 Adjusted Operating Income Margin | 43.10% | ||
Q3 Operating Income Margin | 41.30% |
*Applies to a deviation of less than 1%; not applicable for per-share numbers.
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the investment management & fund operators peer group is "buy"
Wall Street's median 12-month price target for WisdomTree, Inc. is $26.00, about 20.6% above its October 29 closing price of $21.55
The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 14 three months ago
Reuters Recommended Reads
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Oct 27 - LPL Financial Q3 adjusted EPS beats estimates as client assets rise
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)