Federated Hermes' Q3 revenue slightly beats, partly on equity asset growth
Overview
US asset manager's Q3 revenue rose 8% yr/yr, slightly beating analyst expectations
Q3 EPS increased to $1.50 from $1.34 a year earlier
Outlook
Company did not provide specific financial guidance for the current quarter or full year in the press release
Result Drivers
EQUITY ASSET GROWTH - Co said higher average equity assets and record net equity sales, including in MDT quantitative investment solutions, drove revenue growth
ALTERNATIVE STRATEGIES DEMAND - Co said continued demand for alternative/private markets strategies, including MDT Market Neutral offerings, contributed to record assets
FCP ACQUISITION IMPACT - Q2 acquisition of FCP Fund Manager, L.P. contributed to revenue growth and increased compensation and related expenses
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Slight Beat* | $507.3 mln | $502.72 mln (4 Analysts) |
Q3 EPS | $1.50 |
*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 "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 5 "hold" and 1 "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 Federated Hermes Inc is $58.50, about 3% above its October 28 closing price of $56.78
The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 10 three months ago
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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.)