The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Federated Investors met expectations on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share grew significantly.
Margins increased across the board.
Federated Investors recorded revenue of $238.5 million. The eight analysts polled by S&P Capital IQ foresaw a top line of $241.9 million on the same basis. GAAP reported sales were 11% higher than the prior-year quarter's $214.0 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.54. The eight earnings estimates compiled by S&P Capital IQ predicted $0.41 per share. GAAP EPS of $0.54 for Q3 were 46% higher than the prior-year quarter's $0.37 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 72.7%, 40 basis points better than the prior-year quarter. Operating margin was 37.8%, 650 basis points better than the prior-year quarter. Net margin was 23.4%, 550 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $249.2 million. On the bottom line, the average EPS estimate is $0.42.
Next year's average estimate for revenue is $951.5 million. The average EPS estimate is $1.65.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 301 members out of 320 rating the stock outperform, and 19 members rating it underperform. Among 100 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 96 give Federated Investors a green thumbs-up, and four give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Federated Investors is underperform, with an average price target of $20.64.
Can your portfolio provide you with enough income to last through retirement? You'll need more than Federated Investors. Learn how to maximize your investment income and "Secure Your Future With 9 Rock-Solid Dividend Stocks." Click here for instant access to this free report.
- Add Federated Investors to My Watchlist.