Investment manager Pershing Square's Q3 revenue falls

Overview

• US investment manager's Q3 revenue was $56.6 mln vs $66.2 mln yr ago

• Operating loss for Q3 was $20.07 mln

Outlook

• Company did not provide specific guidance for current or future quarters in the press release

Result Drivers

• HHH FAIR-VALUE GAIN – Net income swung to a loss as unrealized gains on HHH shares fell to $19.2 mln from $132.0 mln yr/yr

• NON-CASH COMPENSATION – Operating results were weighed down by $64.8 mln of non-cash or non-recurring compensation, including equity-grant amortization and severance

• FEE-PAYING AUM APPRECIATION – Fee-paying AUM rose 3.2% q/q as $813 mln of market-value gains more than offset $112 mln of outflows

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 6 "hold" and 3 "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 Pershing Square Inc is $42.00, about 8% below its October 30 closing price of $45.66

• The stock recently traded at 54 times the next 12-month earnings vs. a P/E of 46 three months ago

Reuters Recommended Reads

• Nov 2 - Greenlight Capital Re Q3 net income returns to profit as premiums slip

• Nov 2 - Corebridge Financial Q3 net income surges on realized gains

• Nov 2 - Equitable Holdings Q3 adjusted EPS jumps 44%, beats estimates

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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.)