Victory Capital Q3 revenue falls sequentially, missing estimates amid changes in client mix, asset-class changes
Overview
US asset manager's Q3 revenue rose yr/yr but missed analyst expectations
Adjusted net income for Q3 missed analyst expectations
Company reported record client assets and net inflows for the quarter
Outlook
Company expects First Eagle acquisition to close by end of Q1 2027
Company focused on integration planning for First Eagle acquisition
Company expects First Eagle deal to expand product offerings and distribution footprint
Result Drivers
BROAD-BASED NET INFLOWS - Co said positive net flows across U.S. intermediary, institutional, and international channels, and multiple asset classes, drove record gross sales and net inflows
INVESTMENT PERFORMANCE - Co said strong investment performance contributed to results, with a majority of AUM outperforming benchmarks over multiple periods
REVENUE DECLINE FACTORS - Co attributed sequential revenue decline to timing of annual fee crystallization and changes in asset class and client mix
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Miss | $396.60 mln | $409.004 mln (5 Analysts) |
Q3 EPS | $1.11 | ||
Q3 Adjusted Net Income | Miss | $152.50 mln | $156.93 mln (4 Analysts) |
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 5 "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 Victory Capital Holdings, Inc. is $119.50, about 3.2% above its November 3 closing price of $115.75
The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 13 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.)